CRANBURY, N.J., Nov. 13, 2017 /PRNewswire/ -- Palatin
Technologies, Inc. (NYSE MKT: 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 first quarter
ended September 30, 2017.
Recent Highlights
- Bremelanotide - Under development for Hypoactive Sexual
Desire Disorder ("HSDD"):
-
- Entered into a collaboration and 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.
-
- Received $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.
- Working closely with AMAG Pharmaceuticals, Inc. ("AMAG") on
completing the tasks and activities necessary to file a New Drug
Application ("NDA") with the Food and Drug Administration
("FDA").
- Target NDA filing with the FDA for early calendar year
2018.
- U.S. Patent 7,700,592 issued July 11,
2017, on methods of treating female sexual dysfunction and
HSDD with bremelanotide. The patent will expire in November 2033.
First Quarter Fiscal Year 2018 Financial
Results
Palatin reported net income of $10.6 million, or $0.05 per basic and diluted share, for the
quarter ended September 30, 2017,
compared to a net loss of $(13.1)
million, or $(0.08) per basic
and diluted share, for the same period in
2016.
The difference in financial results between the three months
ended September 30, 2017 and 2016 was
primarily attributable to the recognition of $26.9 million in license and contract revenue
during the 2017 period pursuant to our license agreement with AMAG
and our license agreement with Fosun.
Revenue
For the quarter ended September 30, 2017, Palatin recognized
$21.9 million in license and contract
revenue related to our license agreement with AMAG and $5.0 million in license revenue related to our
license agreement with Fosun.
There were no revenues recorded in the quarter ended
September 30, 2016.
Operating Expenses
Total operating expenses for the
quarter ended September 30, 2017 were
$15.7 million compared to
$12.4 million for the comparable
quarter of 2016. The increase in operating expenses was
mainly attributable to the continued progress of the development of
bremelanotide for HSDD.
Other Income/Expense
Total other expense, net was
$0.4 million for the quarter ended
September 30, 2017 compared to
$0.6 million for the quarter ended
September 30, 2016. Total other
expense, net for both periods consisted primarily of interest
expense related to Palatin's venture debt.
Income Tax
Pursuant to the license agreement with
Fosun, $500,000 was withheld in
accordance with tax withholding requirements in China and will be recorded as an expense
during the fiscal year ending June 30,
2018. For the quarter ended September
30, 2017, Palatin incurred $225,255 in income tax expense utilizing an
estimated effective annual income tax rate applied to income for
the quarter and the remaining balance of $274,745 was included in prepaid expenses and
other current assets at September 30,
2017. Any potential credit to be received by Palatin on its
United States tax returns is
currently offset by Palatin's valuation allowance.
Cash Position
Palatin's cash, cash equivalents,
accounts receivable and investments were $49.3 million as of September 30, 2017, compared to cash, cash
equivalents, accounts receivable and investments of $55.6 million at June
30, 2017. Current liabilities were $19.3 million, net of deferred revenue of
$20.2 million, as of September 30, 2017, compared to $19.9 million, net of deferred revenue of
$35.1 million, as of June 30, 2017.
Palatin believes that existing capital resources will be
sufficient to fund our planned operations through at least the 2018
calendar year.
Conference Call / Webcast
Palatin will host a
conference call and webcast on November 13,
2017 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
1-888-394-8218 (domestic) or 1-323-701-0225 (international),
conference ID 2622306. 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 2622306. The webcast and telephone replay will be
available through November 18,
2017.
About Palatin Technologies, Inc.
Palatin
Technologies, Inc. is a biopharmaceutical company developing
targeted, receptor-specific peptide therapeutics for the treatment
of diseases with significant unmet medical need and commercial
potential. Palatin's strategy is to develop products and then form
marketing collaborations with industry leaders in order to maximize
their commercial potential. For additional information
regarding Palatin, please visit Palatin's website at
www.Palatin.com.
Forward-looking Statements
Statements in this press
release that are not historical facts, including statements about
future expectations of Palatin Technologies, Inc., such as
statements about clinical trial results, potential actions by
regulatory agencies including the FDA, regulatory plans,
development programs, proposed indications for product candidates
and market potential for product candidates, are "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, Section 21E of the Securities Exchange Act of 1934 and as
that term is defined in the Private Securities Litigation Reform
Act of 1995. Palatin intends that such forward-looking statements
be subject to the safe harbors created thereby. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause Palatin's actual
results to be materially different from its historical results or
from any results expressed or implied by such forward-looking
statements. Palatin's actual results may differ materially from
those discussed in the forward-looking statements for reasons
including, but not limited to, results of clinical trials,
regulatory actions by the FDA and the need for regulatory
approvals, Palatin's ability to fund development of its technology
and establish and successfully complete clinical trials, the length
of time and cost required to complete clinical trials and submit
applications for regulatory approvals, products developed by
competing pharmaceutical, biopharmaceutical and biotechnology
companies, commercial acceptance of Palatin's products, and other
factors discussed in Palatin's periodic filings with the Securities
and Exchange Commission. Palatin is not responsible for updating
for events that occur after the date of this press release.
(Financial Statement Data Follows)
PALATIN
TECHNOLOGIES, INC.
|
and
Subsidiary
|
Consolidated
Statements of Operations
|
(unaudited)
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
REVENUES:
|
|
|
|
|
License and contract
revenue
|
$
26,941,508
|
|
$
-
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
Research and
development
|
14,163,097
|
|
11,226,084
|
|
General and
administrative
|
1,544,575
|
|
1,209,346
|
|
Total operating
expenses
|
15,707,672
|
|
12,435,430
|
|
|
|
|
|
|
Income (Loss) from
operations
|
11,233,836
|
|
(12,435,430)
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
|
Interest
income
|
51,726
|
|
6,645
|
|
Interest
expense
|
(456,677)
|
|
(623,985)
|
|
Total other expense,
net
|
(404,951)
|
|
(617,340)
|
|
|
|
|
|
|
Income (Loss) before
income taxes
|
10,828,885
|
|
(13,052,770)
|
|
Income tax
expense
|
(225,255)
|
|
-
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
$
10,603,630
|
|
$
(13,052,770)
|
|
|
|
|
|
|
Basic net income
(loss) per common share
|
$
0.05
|
|
$
(0.08)
|
|
|
|
|
|
|
Diluted net income
(loss) per common share
|
$
0.05
|
|
$
(0.08)
|
|
|
|
|
|
|
Weighted average
number of common shares
outstanding used in computing basic net income
(loss) per common share
|
197,112,400
|
|
165,848,269
|
|
|
|
|
|
|
Weighted average
number of common shares
outstanding used in computing diluted net income
(loss) per common share
|
201,360,736
|
|
165,848,269
|
|
|
|
|
|
|
PALATIN
TECHNOLOGIES, INC.
|
and
Subsidiary
|
Consolidated
Balance Sheets
|
(unaudited)
|
|
|
|
|
|
September 30,
2017
|
|
June 30,
2017
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
39,708,573
|
|
$
40,200,324
|
Available-for-sale
investments
|
249,969
|
|
249,837
|
Accounts
receivable
|
9,389,722
|
|
15,116,822
|
Prepaid expenses and
other current assets
|
939,985
|
|
1,011,221
|
Total current
assets
|
50,288,249
|
|
56,578,204
|
|
|
|
|
Property and
equipment, net
|
193,037
|
|
198,153
|
Other
assets
|
56,916
|
|
56,916
|
Total
assets
|
$
50,538,202
|
|
$
56,833,273
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIENCY)
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
2,033,638
|
|
$
1,551,367
|
Accrued
expenses
|
9,384,423
|
|
10,521,098
|
Notes payable, net of
discount and debt issuance costs
|
7,857,231
|
|
7,824,935
|
Capital lease
obligations
|
7,214
|
|
14,324
|
Deferred
revenue
|
20,160,381
|
|
35,050,572
|
Total current
liabilities
|
39,442,887
|
|
54,962,296
|
|
|
|
|
Notes payable, net of
discount and debt issuance costs
|
4,305,241
|
|
6,281,660
|
Other non-current
liabilities
|
814,396
|
|
753,961
|
Total
liabilities
|
44,562,524
|
|
61,997,917
|
|
|
|
|
Stockholders' equity
(deficiency):
|
|
|
|
Preferred stock of
$0.01 par value – authorized 10,000,000 shares:
|
|
|
|
Series A Convertible:
issued and outstanding 4,030 shares as of
September 30, 2017 and June 30, 2017
|
40
|
|
40
|
Common stock of $0.01
par value – authorized 300,000,000 shares:
|
|
|
|
issued and
outstanding 184,393,007 shares as of September 30,
2017 and 160,515,361 shares as of June 30, 2017,
respectively
|
1,843,930
|
|
1,605,153
|
Additional paid-in
capital
|
350,276,851
|
|
349,974,538
|
Accumulated other
comprehensive loss
|
(153)
|
|
(590)
|
Accumulated
deficit
|
(346,144,990)
|
|
(356,743,785)
|
Total stockholders'
equity (deficiency)
|
5,975,678
|
|
(5,164,644)
|
Total liabilities and
stockholders' equity (deficiency)
|
$
50,538,202
|
|
$
56,833,273
|
|
|
|
|
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SOURCE Palatin Technologies, Inc.