Palatin Technologies, Inc. (PTN)
F4Q12 Earnings Call
September 11, 2012 11:00 a.m. ET
Carl Spana - President and Chief Executive Officer
Steve Wills - Chief Financial and Operating Officer, Executive Vice President
Jeffrey Edelson - Chief Medical Officer
Joseph Pantginis - Roth Capital Partners
Rahul Jasuja - Noble Financial Capital Markets
Previous Statements by PTN
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Good morning, ladies and gentlemen, and welcome to the Palatin Technologies Fourth Quarter Fiscal Year End for 2012 Call. As a reminder, this call is being recorded.
Before we begin our remarks, I would like to remind you that statements 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 the 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 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. 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 fourth quarter 2012 financial results. Steve?
Thank you, Carl, and good morning everyone. Regarding our financial operating results, Palatin’s net loss for the quarter ended June 30, 2012 was $5.3 million or $0.14 per basic and diluted share compared to a net loss of $3.3 million or $0.09 per basic and diluted share for the quarter ended June 30, 2011.
For the year ended June 30, 2012, we reported a net loss of $17.3 million or $0.49 per basic and diluted share compared to a net loss of $12.8 million or $0.64 per basic and diluted share for the year ended June 30, 2011. The change in net loss for the quarter and year ended June 30, 2012 compared to the net loss for the same period of last fiscal year, was primarily the result of costs related to our ongoing Phase 2B clinical trial with bremelanotide for female sexual dysfunction.
In addition, in the quarter ended June 30, 2011, Palatin recognized $1.3 million of non-cash, non-operating income related to our March 2011 public offering, which represented the change to the warrant liability accounting.
Regarding revenue, total revenue for the quarter ended June 30, 2012 which consisted entirely of amounts recognized under our obesity collaboration with AstraZeneca, was $11,000 compared to $155,000 for the quarter ended June 30, 2011. Revenue for the quarter ended June 30, 2011 consisted mainly of grant revenue pursuant to the Patient Protection and Affordable Care Act of 2010, commonly referred to as Section 48D, and also amounts recognized from AstraZeneca.
Total revenues for the year ended June 30, 2012 were $74,000 and consisted entirely of amounts recognized from our collaboration with AstraZeneca. Total revenues for the year ended June 30, 2011 were $1.5 million and consisted of $1 million of grant revenue pursuant to Section 48D, and the remainder from AstraZeneca.
Regarding cost and expenses, total operating cost for the quarter ended June 30, 2012 were $5.7 million compared to $4.7 million for the same period in 2011. Staying on cost and expenses, for the year ended June 30, 2012, total operating expenses were $18.9 million compared to $15.1 million for the year ended June 30, 2011. The increase in costs for the quarter and year ended June 30, 2012 compared to the quarter and year-end June 30, 2011, is a result of cost related to our FSD trial with bremelanotide which is currently in Phase 2B.
Regarding our cash position, as of June 30, 2012, our cash and cash equivalents were $3.8 million and we have current liabilities of $3.5 million. This compared to cash and cash equivalents of $18.9 million and current liabilities of $2.8 million as of June 30, 2011. In July 2012, Palatin closed on a $35 million private placement with the net proceeds after deducting operating expenses, amounting to $34.5 million.
Palatin’s audited financial statements for the year ended June 30, 2012, included in our Annual Report on Form 10-K, includes an audit opinion that contains a growing concern explanatory paragraph from our auditors KPMG related to certain redemption rights for Series B 2012 warrants issued in our July 2012 private placement in the event that stockholders do not approve an increase in authorized shares of common stock by a specific period. Carl?
Thank you, Steve. And now for an update of our programs, starting with our obesity and diabetes melanocortin-4 receptor program which is partnered with AstraZeneca. This program is run under the direction of AstraZeneca. As we have previously reported, AstraZeneca has discontinued development of the clinical candidate AZD2820. This decision was based on a single severe adverse event experienced by an obese patient in a Phase I trial of AZD2820. AstraZeneca has competed an investigation of this severe adverse event and it appears that this severe adverse event was not cardiovascular related, and while not confirmed, it could not be excluded that the severe adverse event was linked to AZD2820.