Full Press Release Details
Palatin Technologies, Inc. Reports Second Quarter
Fiscal Year 2018 Results;
Teleconference and Webcast to be held on February 12,
CRANBURY, NJ February 12, 2018 Palatin
Technologies, Inc. (NYSE American: PTN), a biopharmaceutical
company developing targeted, receptor-specific peptide therapeutics
for the treatment of diseases with significant unmet medical need
and commercial potential, today announced results for its second
quarter ended December 31, 2017.
- Under development for Hypoactive
Sexual Desire Disorder ( HSDD ):
into a license agreement with Kwangdong Pharmaceutical Co., Ltd.
( Kwangdong ) in November 2017 for exclusive rights to
develop and commercialize bremelanotide in the Republic of
$417,500 in December 2017, consisting of an upfront payment of
$500,000 less $82,500 which was withheld in accordance with tax
withholding requirements in the Republic of Korea.
Entered into a license agreement with
Shanghai Fosun Pharmaceutical
Industrial Development Co. Ltd. ( Fosun ), a subsidiary
of Shanghai Fosun Pharmaceutical (Group) Co., Ltd., in September
2017 for exclusive rights to develop and commercialize
bremelanotide in the territories of mainland China, Taiwan, Hong
Kong S.A.R. and Macau S.A.R.
$4,500,000 in October 2017, consisting of an upfront payment of
$5,000,000 less $500,000 which was withheld in accordance with tax
withholding requirements in China.
closely with AMAG Pharmaceuticals, Inc. ( AMAG ), our
licensee for North America, on completing the tasks and activities
necessary to file a New Drug Application ( NDA ) with
the Food and Drug Administration ( FDA ).
filing with the FDA by AMAG targeted by March 31,
Melanocortin Receptor 1 Agonist
under development for inflammatory bowel
Subject Dosing in First-in-Human Clinical Study of PL-8177, an MC1r
FDA Clearance of Investigational New Drug ( IND )
Application for PL-8177 For Ulcerative Colitis.
Second Quarter Fiscal 2018 Financial Results
Palatin reported net income of $3.0 million, or $0.02 per basic and
$0.01 per diluted share, for the quarter ended December 31, 2017,
compared to a net loss of $(10.0) million, or $(0.06) per basic and
diluted share, for the same period in 2016.
The difference in financial results between the three months ended
December 31, 2017 and 2016 was primarily attributable to the
recognition of $10.6 million in license and contract revenue during
the 2017 period pursuant to our license agreement with AMAG, and a
reduction of $2.1 million in research and development
For the quarter ended December 31, 2017, 100% of the revenue
Palatin recognized was related to our license agreement with
There were no revenues recorded in the quarter ended December 31,
Total operating expenses for the quarter ended December 31, 2017
were $7.7 million compared to $9.4 million for the comparable
quarter of 2016. The decrease in operating expenses was mainly
attributable to the relative development stages of bremelanotide
for HSDD as we continue our progress of filing an NDA with the
Other Income/Expense
Total other expense, net was $0.3 million for the quarter ended
December 31, 2017 compared to $0.6 million for the quarter ended
December 31, 2016. Total other expense, net for both periods
consisted primarily of interest expense related to Palatin's
to the license agreements with Fosun and Kwangdong, $500,000 and
$82,500, respectively, was withheld in accordance with tax
withholding requirements in China and the Republic of Korea,
respectively, and will be recorded as an expense during the fiscal
year ending June 30, 2018. For the quarter ended December 31, 2017,
Palatin recorded $100,880 in income tax expense related to those
withholding amounts utilizing an estimated effective annual income
tax rate applied to income for the quarter and the remaining
balance of $256,365 was included in prepaid expenses and other
current assets at December 31, 2017. Any potential credit to be
received by Palatin on its United States tax returns is currently
offset by Palatin's valuation allowance. The $100,880 of
income tax expense is offset by a $500,000 tax benefit that Palatin
recorded in the quarter ended December 31, 2017 related to the
release of a valuation allowance against Palatin's federal
alternative minimum tax credit as a result of the Tax Cuts and Jobs
Act signed in December 2017. Accordingly, $500,000 is included in
other long-term assets at December 31, 2017.
Palatin's cash, and cash equivalents were $35.0 million as of
December 31, 2017, compared to cash, cash equivalents, accounts
receivable and investments of $55.6 million at June 30, 2017.
Current liabilities were $14.1 million, net of deferred revenue of
$9.5 million, as of December 31, 2017, compared to $19.9 million,
net of deferred revenue of $35.1 million, as of June 30,
Palatin believes that existing capital resources will be sufficient
to fund our planned operations through at least the next 12
CONFERENCE CALL / WEBCAST
Palatin will host a conference call and webcast on February 12,
2018 at 11:00 a.m. Eastern Time to discuss the results of
operations in greater detail and provide an update on corporate
developments. Individuals interested in listening to the conference
call live can dial 1-800-289-0449 (domestic) or 1-323-794-2093
(international), conference ID 6111978. The webcast and replay can
be accessed by logging on to the Investor/Webcasts
section of Palatin's website at http://www.palatin.com. A
telephone and webcast replay will be available approximately one
hour after the completion of the call. To access the telephone
replay, dial 1-888-203-1112 (domestic) or 1-719-457-0820
(international), passcode 6111978. The webcast and telephone replay
will be available through February 19, 2018.