Palatin Technologies, Inc. Reports First Quarter Fiscal Year 2013 Results; Teleconference and Webcast to be held on November 14, 2012

CRANBURY, N.J., Nov. 14, 2012 /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, 2012. 

Recent Highlights
On July 3, 2012, Palatin closed on a private placement of 3,873,000 shares of its common stock, Series A 2012 warrants to purchase up to 31,988,151 shares of its common stock, and Series B 2012 warrants to purchase up to 35,488,380 shares of its common stock. Aggregate gross proceeds to Palatin were $35,000,000, with net proceeds, after deducting offering expenses, of $34,407,446.

On September 27, 2012, at a special meeting Palatin stockholders voted to increase its authorized common stock from 100,000,000 to 200,000,000 shares, and Palatin filed a certificate of amendment with the Secretary of State of Delaware the same day. This satisfied certain contractual obligations relating to the Series B 2012 warrants in its 2012 private placement, so that interest will not be payable on the value of the Series B 2012 warrants and Palatin will not be required to redeem the Series B 2012 warrants for failure to increase the number of authorized shares.

On November 8, 2012, Palatin reported positive top-line results, including the successful achievement of statistical significance for the primary endpoint and key secondary endpoints in its Phase 2B clinical trial evaluating the efficacy and safety of bremelanotide for treatment of female sexual dysfunction (FSD). The primary endpoint data analysis of 327 pre-menopausal women with female sexual arousal disorder (FSAD), hypoactive sexual desire disorder (HSDD), or a combination of both disorders, the most common types of FSD, demonstrate that women taking bremelanotide showed clinically meaningful and statistically significant increases in the number of Satisfying Sexual Events (SSEs) and also showed clinically meaningful and statistically significant improved measures of overall sexual functioning and distress related to sexual dysfunction, compared to placebo.  Bremelanotide was well-tolerated during the trial.  The most common types of treatment-emergent adverse events reported more frequently in the bremelanotide arms were facial flushing, nausea and emesis, which were mainly mild-to-moderate in severity.  Adverse events that most commonly led to discontinuation were nausea and emesis.  No serious adverse events were attributable to bremelanotide during the trial.  Based on the results of discussions with the U.S. Food and Drug Administration (FDA) and external advisors regarding the results of this trial and further development steps, Phase 3 activities are anticipated to start in the second-half of calendar year 2013.

First Quarter Fiscal 2013 Financial Results
Palatin reported a net loss of $10.5 million, or $(0.15) per basic and diluted share, for the quarter ended September 30, 2012, compared to a net loss of $3.4 million, or $(0.10) per basic and diluted share, for the same period in 2011.

The increase in net loss for the quarter ended September 30, 2012, compared to the same period last fiscal year, was mainly attributable to a non-cash, non-operating expense of $7.1 million, which represented the increase in fair value of the warrants, which were previously liability classified until our increase in our authorized shares.   

Costs and Expenses
Total operating expenses were $3.4 million for the quarter ended September 30, 2012 and September 30, 2011.  Operating expenses consist of $1.1 million of general and administrative expenses and $2.3 million of research and development for the quarter ended September 30, 2012 and 2011.  General and administrative expenses consist mainly of compensation and related costs and research and development expenses are primarily costs relating to Palatin's Phase 2B clinical trial evaluating the efficacy and safety of bremelanotide for the treatment of FSD.

Cash Position
Palatin's cash and cash equivalents were $33.5 million as of September 30, 2012, compared to $3.8 million at June 30, 2012, with current liabilities of $1.6 million as of September 30, 2012 compared to $3.5 million as of June 30, 2012.

Palatin believes that its existing capital resources will be adequate to fund its currently planned operations, including completing analysis of results of the Company's Phase 2B clinical trial with bremelanotide for FSD, submitting an end-of-phase 2 meeting request to the FDA, and commencing Phase 3 activities, through at least calendar year 2013.

CONFERENCE CALL / WEBCAST

Palatin will host a conference call and webcast on November 14, 2012 at 11:00 a.m. Eastern Time to discuss the results of operations and an update on corporate developments in greater detail.  Individuals interested in listening to the conference call live can dial 1-888-428-9490 (domestic) or 1-719-325-2354 (international), pass code 9649528.  The webcast and replay can be accessed by logging on to the "Investor/Media Center-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), pass code 9649528.  The webcast and telephone replay will be available through November 20, 2012. 

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.

PALATIN TECHNOLOGIES, INC.

and Subsidiary

Consolidated Statements of Operations

(unaudited)






Three Months Ended September 30,


2012


2011





REVENUES:

$                 3,806


$             27,217





OPERATING EXPENSES:




Research and development

2,343,313


2,284,383

General and administrative

1,061,016


1,109,382

Total operating expenses

3,404,329


3,393,765





Loss from operations

(3,400,523)


(3,366,548)





OTHER INCOME (EXPENSE):




Investment income

14,371


15,040

Interest expense

(2,282)


(2,973)

Increase in fair value of warrants

(7,069,165)


-

Gain on disposition of supplies and equipment

4,620


-

Total other income (expense), net

(7,052,456)


12,067





NET LOSS

$      (10,452,979)


$       (3,354,481)





Basic and diluted net loss per common share

$                 (0.15)


$                (0.10)





Weighted average number of common shares
outstanding used in computing basic and diluted net
loss per common share

71,669,170


34,900,591

PALATIN TECHNOLOGIES, INC.

and Subsidiary

Consolidated Balance Sheets

(unaudited)






September 30, 2012


June 30, 2012

ASSETS




Current assets:




Cash and cash equivalents

$                33,461,066


$                  3,827,198

Accounts receivable

31,437


27,631

Restricted cash

-


350,000

Prepaid expenses and other current assets

851,844


532,010

Total current assets

34,344,347


4,736,839





Property and equipment, net

299,735


318,653

Other assets

58,748


324,992

Total assets

$                34,702,830


$                  5,380,484





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Capital lease obligations

$                       22,707


$                       22,277

Accounts payable 

321,621


294,894

Accrued expenses

1,285,215


2,706,496

Accrued compensation

-


433,333

Total current liabilities

1,629,543


3,457,000





Capital lease obligations 

14,068


19,909

Deferred rent

63,372


72,677

Total liabilities

1,706,983


3,549,586





Stockholders' equity:




Preferred stock of $0.01 par value – authorized 10,000,000 shares;




Series A Convertible; issued and outstanding 4,697 shares as of  September 30, 2012 and 4,997 as of June 30, 2012 

47


50

Common stock of $0.01 par value – authorized 200,000,000 shares;




 issued and outstanding 38,947,912 shares as of  September 30, 2012 and 34,900,591 as of June 30, 2012, respectively

389,479


349,006

Additional paid-in capital

282,302,585


240,725,127

Accumulated deficit 

(249,696,264)


(239,243,285)

Total stockholders' equity

32,995,847


1,830,898

Total liabilities and stockholders' equity

$                34,702,830


$                  5,380,484

SOURCE Palatin Technologies, Inc.

Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here
//-->