Palatin Technologies, Inc. (PTN)
F4Q2010 Earnings Call Transcript
September 27, 2010 10:00 am ET
Carl Spana – President and CEO
Stephen Wills – EVP, Operations and CFO
Trevor Hallam – EVP, Research & Development
Keay Nakae – Chardan Capital
Matt Kaplan – Ladenburg Thalmann
Michael Higgins – Rodman & Renshaw
Previous Statements by PTN
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Good morning, ladies and gentlemen, and welcome to the Palatin Technologies fourth quarter fiscal year 2010 conference call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session, and instructions for the question-and-answer session will be given at the end of the company's remarks. As a reminder, this conference call is being recorded.
Before we begin our remarks, I would like to remind you that statements made by Palatin that are not historical facts may be forward-looking statements. These statements are based on assumptions that may or may not prove to be accurate and actual results could differ materially from those anticipated due to a variety of risks and uncertainties discussed in the company's most recent filings with the Securities and Exchange Commission. Please consider such risks and uncertainties carefully in evaluating these forward-looking statements and Palatin's prospects.
Now I like to introduce your host for today's call, Dr. Carl Spana, President and Chief Executive Officer of Palatin Technologies. Please go ahead sir.
Thank you. Good morning, and welcome to the Palatin Technologies fiscal 2010 year-end conference call. I’m Carl Spana, President and Chief Executive Officer of Palatin. With me on the call are Stephen Wills, our Executive Vice President of Operations and Chief Financial Officer, who will provide a financial update; and Dr. Trevor Hallam, our Executive Vice President of Research and Development, who will provide an update on our programs.
To start, I will give an overview of some of our key accomplishments for 2010, and address the information that was released by the company last week. For bremelanotide, our experimental treatment for both female sexual dysfunction and erectile dysfunction, we have conducted three clinical trials in premenopausal woman and middle-aged men, our target demographics, with both of these studies which characterize the effects of subcutaneous bremelanotide on blood pressure and to show our reproducible plasma exposure level. I’m happy to report the results of these studies have provided us with the data required to move forward both of these exciting programs.
For PL-3994, our natriuretic receptor A agonist, we have generated very exciting treatment from data showing potent bronchodilator activity. We have discussed this data with the FDA and are ready to open up a new IND to support Phase 2 clinical studies in asthmatic patients. As a reminder, we have already conducted two Phase 1 studies under an open IND for cardiovascular indications. In addition, we have made a good start [ph] for potential corporate partners to this program.
For melanocortin receptor 4 obesity and diabetes program, which is partnered with AstraZeneca, we have achieved several important milestones this year. We demonstrated human clinical proof-of-principal that validates the melanocortin-4 receptor as a target for treating obesity, and we also successfully completed our joint research program transferring B compounds, [ph], backup compounds and assays to AstraZeneca. This program now under the direction of AstraZeneca is moving towards clinical trials for early next year.
Our discovery and research activities have provided us with multiple backup compounds for our melanocortin-4 receptor and natriuretic receptor clinical programs. In addition, we now have novel compounds in both areas ready to move into new indications.
Finally, we brought in approximately $50 million of operating capital from a variety of sources, including our AstraZeneca collaboration and equity financings. This was done in a very difficult funding environment for micro-cap public companies. We now have three Phase 2 clinical programs that address areas of unmet medical need with large market potentials, and a fourth about to enter the clinic with our partner AstraZeneca. These programs are now well positioned to generate substantial value for our shareholders.
In order to ensure that these programs successfully move forward we will need the appropriate resources, which brings me to our disclosures of last week. First, we began a restructuring of our workforce last week that will provide us with the human resources needed to move our clinical development programs forward. As part of this restructuring, we reduced our discovery research staff. This reduction frees up valuable resources that will be redirected into our clinical programs and in no way compromises our ability to move our clinical programs forward.
The decision to lay off employees is always difficult, particularly in troubled financial times. We like to thank our departing employees for their many contributions, and we wish them well as they move on to new opportunities. Second, we announced a 1-for-10 reverse stock split, which was effective with the beginning of trade today, September 27. This reverse stock split was an absolute requirement for the company to maintain its listing on the NYSE AMEX national exchange.
This activity was approved by our shareholders at our annual meeting in May of this year. The management and the board of directors determined that it was clearly in the best interests of our shareholders to maintain our listing on a national exchange. The liquidity and exposure this provides is critical for micro-cap public companies, and is also important for the company to execute on its financing plans.
I’m going to turn the call over to Mr. Wills, who will provide an overview of our financials and additional details on the reverse stock split. Mr. Wills.