EX-99 2 ex99.htm PRESS RELEASE DATED 09-27-2010 ex99.htm
EXHIBIT 99

 
FOR RELEASE September 27, 2010 at 7:30 a.m. ET
 
Palatin Technologies, Inc. Reports Fourth Quarter
and Fiscal Year End 2010 Results
 Teleconference and Webcast to be held on September 27, 2010
 
 
CRANBURY, NJ – September 27, 2010 – Palatin Technologies, Inc. (NYSE Amex: PTN), a biopharmaceutical company dedicated to the development of peptide, peptide mimetic and small molecule agonist compounds with a focus on melanocortin and natriuretic peptide receptor systems, today announced results for its fourth quarter and fiscal year ended June 30, 2010.  All share and per share amounts are presented on a post-reverse-split basis, giving effect to the 1-for-10 reverse stock split announced on September 24, 2010.

Palatin’s net loss for the year ended June 30, 2010 was $1.8 million, or $(0.18) per basic and diluted share, compared to a net loss of $4.8 million, or $(0.56) per basic and diluted share, for the year ended June 30, 2009.
 
 
Palatin reported a net loss of $4.2 million, or $(0.40) per basic and diluted share, for the quarter ended June 30, 2010, compared to a net loss of $0.2 million, or $(0.02) per basic and diluted share, for the same period in 2009.
 
 
The change in net losses for the year and quarter ended June 30, 2010 compared to the net losses for the year and quarter ended June 30, 2009 was primarily attributable to the varying amount of revenue recognized under Palatin’s license and clinical trial agreements with AstraZeneca AB in the respective periods.
 
 
REVENUE
 
For the year ended June 30, 2010, total revenues were $14.2 million, compared to $11.4 million for year ended June 30, 2009.  Total revenues in the quarter ended June 30, 2010 were $0.7 million, compared to $4.2 million for the same period in 2009.
 
 
COSTS AND EXPENSES
 
For the year ended June 30, 2010, total operating expenses were $17.2 million compared to $18.7 million for the year ended June 30, 2009. The decrease is primarily related to management’s refinement of operations and expense control. For the quarter ended June 30, 2010, total operating expenses were $4.9 million versus $4.5 million for the comparable quarter of 2009.  The net increases in operating expenses for the quarter was primarily due to expenses related to Palatin’s clinical-stage development programs.
 
 
 
CASH POSITION/GOING CONCERN
 
Palatin’s cash, cash equivalents and investments were $8.9 million as of June 30, 2010, compared to $7.8 million at June 30, 2009.  Palatin’s audited financial statements for the year ended June 30, 2010, included in the Company’s Annual Report on Form 10-K to be filed

-More-
 
 
 

September 27, 2010, includes an audit opinion from its independent registered public accounting firm, KPMG LLP, that contains a going concern explanatory paragraph.

CONFERENCE CALL / WEBCAST
 
Palatin will host a conference call and webcast on September 27, 2010 at 10:00 a.m. Eastern Time to discuss the previously announced realignment of its workforce and operations to reflect a strategic reassessment of research and development activities and corporate objectives and the fourth quarter of fiscal year 2010 financial results.  Individuals interested in listening to the conference call live can dial 800-753-0343 (domestic) or 913-312-1376 (international), passcode 4114932.  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 888-203-1112 (domestic) or 719-457-0820 (international), passcode 4114932.  The webcast and telephone replay will be available through October 4, 2010.
 
 
About Palatin Technologies, Inc.
Palatin Technologies, Inc. is a biopharmaceutical company focused on discovering and developing targeted, receptor-specific small molecule and peptide therapeutics.  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 Technologies’ website at http://www.palatin.com.
 
 
Forward-looking Statements
Statements about future expectations of Palatin Technologies, Inc., including statements about its development programs, proposed indications for its product candidates, pre-clinical activities, marketing collaborations, and all other statements in this document other than historical facts, 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. Palatin’s actual results may differ materially from those discussed in the forward-looking statements for various reasons, including, but not limited to Palatin’s ability to fund development of its technology, ability to establish and successfully complete clinical trials and pre-clinical studies and the results of those trials and studies, dependence on its partners for certain development activities, need for regulatory approvals and commercial acceptance of its products, ability to protect its intellectual property, and other factors discussed in Palatin’s periodic filings with the Securities and Exchange Commission. Palatin is not responsible for updating events that occur after the date of this press release.

Palatin Technologies Investor Inquiries:
Stephen T. Wills, CPA, MST
EVP-Operations / Chief Financial Officer
Tel:(609) 495-2200/info@palatin.com
Palatin Technologies Media Inquiries:
Carney Noensie, Burns McClellan
Vice President, Investor Relations
Tel:(212) 213-0006/cnoensie@burnsmc.com


###
(Financial Statement Data Follows)
 
 
 


PALATIN TECHNOLOGIES, INC.
and Subsidiary

Consolidated Statement of Operations Data
 
(unaudited)
 
 
 
 

 
 
 
Year Ended June 30,
  
Quarter Ended June 30,
 
2010
  
2009
  
2010
  
2009
               
REVENUES
$ 14,180,727
  
$ 11,351,774
  
$      674,957
  
$     4,227,070
               
OPERATING EXPENSES:
              
     Research and development
12,293,910
  
13,356,751
  
3,554,521
  
3,045,423
     General and administrative
4,901,203
  
5,296,859
  
1,374,320
  
1,415,171
          Total operating expenses
17,195,113
  
18,653,610
  
4,928,841
  
4,460,594
               
          Loss from operations
(3,014,386)
  
(7,301,836)
  
(4,253,884)
  
(233,524)
               
OTHER INCOME (EXPENSE):
              
     Investment income
141,635
  
233,319
  
21,365
  
38,137
     Interest expense
(13,165)
  
(26,159)
  
(3,862)
  
(5,143)
     Gain on sale of supplies and equipment
95,000
  
550,968
  
-
  
-
          Total other income, net
223,470
  
758,128
  
17,503
  
32,994
               
          Loss before income taxes
(2,790,916)
  
(6,543,708)
  
(4,236,381)
  
(200,530)
Income tax benefit
998,408
  
1,741,476
  
-
  
-
               
NET LOSS
$  (1,792,508)
  
$  (4,802,232)
  
$ (4,,236,381)
  
$      (200,530)
               
Basic and diluted net loss per common share
$           (0.18)
  
$           (0.56)
  
$           (0.40)
  
$            (0.02)
               
Weighted average number of common shares outstanding used in computing basic and diluted net loss per common share
9,861,215
  
8,637,030
  
10,722,061
  
8,666,290


 
 
 

PALATIN TECHNOLOGIES, INC.
and Subsidiary

Consolidated Balance Sheet Data
 
(unaudited)
 
 
 
 
   
June 30, 2010
  
June 30, 2009
ASSETS
        
Current assets:
        
  Cash and cash equivalents
  
$             5,405,430
  
$            4,378,662
  Available-for-sale investments
  
3,462,189
  
3,439,650
  Accounts receivable
  
2,879
  
508,528
  Prepaid expenses and other current assets
  
393,313
  
492,824
      Total current assets
  
9,263,811
  
8,819,664
         
Property and equipment, net
  
2,388,365
  
3,650,783
Restricted cash
  
475,000
  
475,000
Other assets
  
261,701
  
254,364
      Total assets
  
$           12,388,877
  
$          13,199,811
         
LIABILITIES AND STOCKHOLDERS’ EQUITY
        
Current liabilities:
        
  Capital lease obligations
  
$                  19,670
  
$                 87,675
  Accounts payable
  
155,795
  
206,363
  Accrued expenses
  
2,219,466
  
1,420,741
  Deferred revenue
  
-
  
6,955,553
      Total current liabilities
  
2,394,931
  
8,670,332
         
Capital lease obligations
  
14,284
  
33,954
Deferred rent
  
661,389
  
1,182,026
      Total liabilities
  
3,070,604
  
9,886,312
         
Stockholders’ equity:
        
  Preferred stock of $0.01 par value – authorized 10,000,000
    shares;
        
    Series A Convertible; issued and outstanding 4,997 shares as of June 30, 2010 and 2009, respectively
  
50
  
50
  Common stock of $0.01 par value – authorized 40,000,000 shares; issued and outstanding 11,702,818 and 8,666,290 shares as of June 30, 2010 and 2009, respectively
  
117,028
  
86,663
  Additional paid-in capital
  
218,236,723
  
210,492,345
  Accumulated other comprehensive income
  
138,650
  
116,111
  Accumulated deficit
  
(209,174,178)
  
(207,381,670)
      Total stockholders’ equity
  
9,318,273
  
3,313,499
      Total liabilities and stockholders’ equity
  
$           12,388,877
  
$          13,199,811