Palatin Technologies Inc. (PTN), the biopharmaceutical company that announced major retrenching Friday, said its fiscal fourth-quarter loss widened sharply as revenue plunged.
Palatin attributed the wider loss to lower payments from AstraZeneca PLC (AZN) for research services. Such fees had dropped in the prior quarter but had increased in earlier periods.
On Friday, Palatin announced it would halve its 40-person work force and narrow its research focus. It also said it would implement a one-for-10 reverse stock split, which was required for the company to keep its listing on the NYSE Amex exchange. Palatin has been developing treatments for male and female sexual dysfunction and acute severe asthma.
For the period ended June 30, Palatin posted a loss of $4.2 million, or 40 cents a share, compared with a year-earlier loss of $200,530, or 2 cents a share. Revenue plunged 84% to $674,957.
Results were reported on a "post-reverse-split basis." There were 10.7 million shares outstanding at the end of the period.
Cash levels were at $8.9 million as of June 30, up from $7.9 million a year earlier. Patalin said Friday its restructuring will cut operating costs some $5.6 million a year; they totaled $17.2 million in the latest fiscal year.
Shares closed Friday at $1.80 and were inactive premarket. The stock is down 51% this year after tripling in 2009.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; email@example.com