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.
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.
Consolidated Statements of Operations
Three Months Ended September 30,
License and contract revenue
Research and development
General and administrative
Total operating expenses
Income (Loss) from operations
OTHER INCOME (EXPENSE):
Total other expense, net
Income (Loss) before income taxes
Income tax expense
NET INCOME (LOSS)
Basic net income (loss) per common share
Diluted net income (loss) per common share
Weighted average number of common shares outstanding used in computing basic net income (loss) per common share
Weighted average number of common shares outstanding used in computing diluted net income (loss) per common share
PALATIN TECHNOLOGIES, INC.
Consolidated Balance Sheets
September 30, 2017
June 30, 2017
Cash and cash equivalents
Prepaid expenses and other current assets
Total current assets
Property and equipment, net
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
Notes payable, net of discount and debt issuance costs
Capital lease obligations
Total current liabilities
Notes payable, net of discount and debt issuance costs
Other non-current liabilities
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
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
Additional paid-in capital
Accumulated other comprehensive loss
Total stockholders' equity (deficiency)
Total liabilities and stockholders' equity (deficiency)