CRANBURY, N.J., Feb. 16 /PRNewswire-FirstCall/ -- Palatin Technologies, Inc. (NYSE Amex: PTN) today announced results for its second quarter ended December 31, 2009. Palatin reported net income of $4.5 million, or $0.04 per basic and diluted share, for the quarter ended December 31, 2009, compared to a net loss of $0.4 million, or $0.00 per basic and diluted share, for the same period in 2008. Total revenues in the quarter ended December 31, 2009 were $7.3 million, compared to $1.2 million for the same period in 2008.
The increase in net income for the quarter ended December 31, 2009, compared to the same period last fiscal year, was primarily due to an increase in revenue recognized under Palatin's license and clinical trial agreements with AstraZeneca AB (AstraZeneca).
As of December 31, 2009, Palatin's cash, cash equivalents and investments totaled $7.4 million, compared to $7.8 million at June 30, 2009 and $6.3 million for the same period last year. The Company anticipates receiving $2.5 million from AstraZeneca related to the September 2009 amendment to the parties' collaboration agreement later this calendar quarter.
Revenue
For the quarter ended December 31, 2009, Palatin recognized $7.3 million of contract revenue under its license and collaboration agreement with AstraZeneca, compared to $1.2 million for the same period in 2008. Based on the September 2009 amendment, Palatin provided research services to AstraZeneca through January 2010. Accordingly, contract revenue is being recognized through the January 2010 date.
Costs and Expenses
Total operating expenses for the quarter ended December 31, 2009 were $3.8 million compared to $4.0 million for the comparable quarter of 2008.
Conference Call/Webcast
Palatin Technologies' management will discuss the second quarter financial results for the fiscal year ending June 30, 2010 and provide an update on corporate developments during a conference call and webcast on February 16, 2010 at 11:00 a.m. Eastern Time.
Individuals interested in listening to the conference call live can dial:
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.
SOURCE Palatin Technologies, Inc.
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The increase in net income for the quarter ended December 31, 2009, compared to the same period last fiscal year, was primarily due to an increase in revenue recognized under Palatin's license and clinical trial agreements with AstraZeneca AB (AstraZeneca).
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As of December 31, 2009, Palatin's cash, cash equivalents and investments totaled $7.4 million, compared to $7.8 million at June 30, 2009 and $6.3 million for the same period last year. The Company anticipates receiving $2.5 million from AstraZeneca related to the September 2009 amendment to the parties' collaboration agreement later this calendar quarter.
Revenue
For the quarter ended December 31, 2009, Palatin recognized $7.3 million of contract revenue under its license and collaboration agreement with AstraZeneca, compared to $1.2 million for the same period in 2008. Based on the September 2009 amendment, Palatin provided research services to AstraZeneca through January 2010. Accordingly, contract revenue is being recognized through the January 2010 date.
Costs and Expenses
Total operating expenses for the quarter ended December 31, 2009 were $3.8 million compared to $4.0 million for the comparable quarter of 2008.
Conference Call/Webcast
Palatin Technologies' management will discuss the second quarter financial results for the fiscal year ending June 30, 2010 and provide an update on corporate developments during a conference call and webcast on February 16, 2010 at 11:00 a.m. Eastern Time.
Individuals interested in listening to the conference call live can dial:
- 888-596-2560 (domestic) or 913-312-0418 (international)
- Passcode: 8075436
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, INC.
and Subsidiary
Consolidated Statements of Operations
(unaudited)
Three Months Six Months
Ended December 31, Ended December 31,
--------------- ---------------
2009 2008 2009 2008
---- ---- ---- ----
REVENUES $7,283,299 $1,211,405 $10,945,918 $1,965,251
---------- ---------- ----------- ----------
OPERATING EXPENSES:
Research and
development 2,712,871 2,839,451 5,382,435 6,497,450
General and
administrative 1,134,963 1,151,475 2,288,694 2,608,323
--------- --------- --------- ---------
Total
operating
expenses 3,847,834 3,990,926 7,671,129 9,105,773
--------- --------- --------- ---------
Income/(Loss)
From operations 3,435,465 (2,779,521) 3,274,789 (7,140,522)
--------- ---------- --------- ----------
OTHER INCOME
(EXPENSE):
Investment income 70,317 77,236 103,629 160,216
Interest expense (2,315) (7,524) (7,016) (12,018)
Gain on sale
of supplies
and equipment - 550,968 95,000 550,968
--- ------- ------ -------
Total other
income, net 68,002 620,680 191,613 699,166
------ ------- ------- -------
Income/(Loss)
Before income
taxes 3,503,467 (2,158,841) 3,466,402 (6,441,356)
Income tax
benefit 998,408 1,741,476 998,408 1,741,476
------- --------- ------- ---------
NET INCOME/(LOSS) $4,501,875 $(417,365) $4,464,810 $(4,699,880)
========== ========= ========== ===========
Basic net
income/(loss)
per common share $0.04 $0.00 $0.04 $(0.05)
===== ===== ===== ======
Diluted net
income/(loss)
per common share $0.04 $0.00 $0.04 $(0.05)
===== ===== ===== ======
Weighted average
number of common
shares outstanding
used in
computing basic
net income/(loss)
per common share 96,169,542 86,640,647 93,737,883 86,082,481
========== ========== ========== ==========
Weighted average
number of common
shares outstanding
used in
computing diluted
net income/(loss)
per common share 96,645,078 86,640,647 94,176,625 86,082,481
========== ========== ========== ==========
PALATIN TECHNOLOGIES, INC.
and Subsidiary
Consolidated Balance Sheets
(unaudited)
December 31, June 30,
2009 2009
---- ----
ASSETS
Current assets:
Cash and cash
equivalents $3,922,685 $4,378,662
Available-for-sale
investments 3,431,724 3,439,650
Accounts receivable 892,587 508,528
Other receivables 1,319,591 -
Prepaid expenses and
other current assets 290,387 492,824
------- -------
Total current assets 9,856,974 8,819,664
Property and equipment, net 2,983,994 3,650,783
Restricted cash 475,000 475,000
Other assets 254,206 254,364
------- -------
Total assets $13,570,174 $13,199,811
=========== ===========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Capital lease obligations $20,307 $87,675
Accounts payable 305,173 206,363
Accrued expenses 1,164,904 1,420,741
Deferred revenue - 6,955,553
--- ---------
Total current liabilities 1,490,384 8,670,332
Capital lease obligations 24,372 33,954
Deferred rent 931,318 1,182,026
------- ---------
Total liabilities 2,446,074 9,886,312
--------- ---------
Stockholders' equity:
Preferred stock of $.01
par value – authorized
10,000,000 shares;
Series A Convertible;
issued and outstanding
4,997 shares as of
December 31, 2009 and
June 30, 2009, respectively 50 50
Common stock of $.01 par
value – authorized
150,000,000 shares;
issued and outstanding
96,214,999 and
86,662,901 shares as of
December 31, 2009 and
June 30, 2009, respectively 962,150 866,629
Additional paid-in capital 212,970,575 209,712,379
Accumulated other
comprehensive income 108,185 116,111
Accumulated deficit (202,916,860) (207,381,670)
------------ ------------
Total stockholders’ equity 11,124,100 3,313,499
---------- ---------
Total liabilities and
stockholders’ equity $13,570,174 $13,199,811
=========== ===========
SOURCE Palatin Technologies, Inc.
