Palatin Technologies, Inc (PTN)
F3Q2012 Earnings Conference Call
May 14, 2012 11:00 AM ET
Dr. Carl Spana - President and Chief Executive Officer
Steve Wills - Chief Financial and Operating Officer and Executive Vice President
Dr. Jeffrey Edelson - Chief Medical Officer
Joseph Pantginis - Roth Capital Partners
Rahul Jasuja - Noble Financial Capital Market
Previous Statements by PTN
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Good morning, ladies and gentlemen and welcome to the Palatin Technologies Third Quarter Fiscal Year 2012 Conference call. As a reminder, this conference call is being recorded.
Before we begin our remarks, I would like to remind you that statements by Palatin that are not historical facts maybe 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 would like to introduce you to your host for today, Dr. Carl Spana, President and Chief Executive Officer of Palatin Technologies. Please go ahead, sir.
Dr. Carl Spana
Thank you. Good morning. I’m Carl Spana, President and CEO of Palatin Technologies. With me on the call today is Steve Wills, our Chief Financial and Operating Officer and Executive Vice President; and Dr. Jeffrey Edelson, our Chief Medical Officer.
On today’s call, we will be providing updates on our product programs and financial results. To begin, Steve Wills will provide an update on our fiscal third quarter 2012 financial results. Steve?
Thank you, Carl and good morning everyone. Regarding our operating results, Palatin’s net loss for the quarter ended March 31, 2012 was $6.0 million or $0.17 per basic and diluted share compared to a net loss of $3.8 million or $0.17 per basic and diluted share for the quarter ended March 31, 2011.
The increase in net loss for the quarter ended March 31, 2012 compared to the same period last fiscal year was attributable to costs related to our ongoing Phase 2b clinical trial with bremelanotide for female sexual dysfunction. This trial commenced June of 2011. The net loss per share of $0.17 for both quarters reflects the weighted average impact of a greater number of shares outstanding for the entire quarter ended March 31, 2012 compared to the same period in 2011.
Regarding revenue, total revenue for the quarter ended March 31, 2012 was $24,000, compared to $61,000 for the quarter ended March 31, 2011. This revenue consisted entirely of amounts recognized under our collaboration agreement with AstraZeneca.
Regarding cost and expenses, total operating cost for the quarter ended March 31, 2012 were $6.1 million compared to $2.7 million for the same period in 2011. As I mentioned, the bremelanotide trial for female sexual dysfunction commenced June of 2011.
The increase in operating expenses for the quarter ended March 31, 2012 compared to the comparable quarter in 2011 was primarily due to costs related to our ongoing Phase 2b clinical trial with bremelanotide for female sexual dysfunction.
Regarding our cash position as of March 31, 2012, our cash and cash equivalents were $8.8 million and our current liabilities amounted $3.4 million. We believe based on our current operating plans, that our cash and cash equivalents will be sufficient to fund our operations through March 31, 2013. Carl?
Dr. Carl Spana
Thank you and now for an update of our program, starting with RBC and diabetes, melanocortin-4 receptor program partner with AstraZeneca. This program under the direction of AstraZeneca continues to make substantial progress. In 2011, Astra designated the compound AZD2820 which was developed by Palatin as a candidate for clinical development. AstraZeneca has completed a Phase 1 study with AZD2820 and results from this study indicate that AZD2820 has a safety and pharmacokinetic properties for further development.
For all the year, this quarter AstraZeneca began enrolment in a second clinical trial of AZD2820. This study is a randomized, a single blind, placebo controlled study to investigate safety, tolerability in pharmacokinetics and pharmacodynamics of repeated and ascending doses of AZD2820 in obese subjects. Study is starting to enroll approximately 72 obese subjects, and additional details can be found on the website clinicaltrials.gov.
Results of this trial should be available later this calendar year, if results of this trial support further development of AZD2820, we expect that AstraZeneca will aggressively move AZD2820 into larger Phase 2b clinical studies. The commercial drug candidate AZD2820 is a melanocortin receptor, partial agonist developed by Palatin, as part of its collaborative research program with AstraZeneca. The decision to move this program into clinical development was in part based on exciting clinical data generated by Palatin as part of our collaboration with AstraZeneca.
Results and proof of principle clinical trials of obese patients with non-commercial compounds that target the melanocortin-4 receptor showed significant reductions in food intake and weight loss. We believe this clinical data along with earlier work on animal models of obesity demonstrate the significant role that the melanocortin pathway played in regulating food intake, weight loss and validates melanocortin-4 receptor as a major target for obesity therapeutics.
We believe that therapeutics that target the melanocortin-4 receptor have the potential to demonstrate the safety and efficacy required for approval and to dramatically impact the treatment of obesity. As you can imagine, this program has huge commercial potential and we believe that our partner, AstraZeneca has the resources and commitment to realize this potential.