Press Releases
PALATIN TECHNOLOGIES REPORTS SECOND QUARTER RESULTS
PRINCETON, NJ (February 15, 2002) - Palatin Technologies Inc (AMEX:PTN) today announced results for its second quarter ended December 31, 2001. Palatin also announced plans to hold a teleconference on Wednesday, February 20th at 10:00 AM EST. Management will discuss the 2nd quarter financial results as well as the current status of the company, its products and its programs. Information on accessing the teleconference/webcast follows.
Palatin reported revenues for the second quarter of fiscal year 2002 of $41,667, with a net loss of $3.8 million or $0.31 loss per share. In the second quarter of fiscal year 2001, revenues totaled $706,460 and the net loss was $1.8 million or $0.17 loss per share.
The increase in net loss for the second quarter ended December 31, 2001, was primarily attributable to increases in operating expenses related to ongoing clinical trials of PT-141, costs associated with the planned move to the new facility, and increased costs associated with the Company's MIDAS and LeuTech development efforts.
According to Stephen T. Wills, chief financial officer of Palatin, the net cash used in operating activities for the six and three months ended December 31, 2001 totaled $6.4 million and $3.8 million, respectively. The balance sheet reflected cash and cash equivalents of approximately $15 million as of December 31, 2001.
Palatin Technologies, Inc. is a development-stage biopharmaceutical company. The company is currently conducting clinical investigations with its lead drug, PT-141, for the treatment of erectile dysfunction, and is developing additional therapeutic compounds discovered using its enabling peptide platform technology, MIDAS™. Additionally, Palatin is developing a product for infection imaging, LeuTech®, based on a proprietary radiolabeled monoclonal antibody. For further information visit the Palatin web site at www.palatin.com.
Statements about the Company’s future expectations, including development and regulatory plans, and all other statements in this release 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. The Company intends that such forward-looking statements be subject to the safe harbors created thereby.
Palatin’s actual results may differ materially from its historical results of operations and those discussed in the forward-looking statements for various reasons, including, but not limited to the Company’s ability to carry out its business plan, successful development and commercial acceptance of its products, ability to fund development of technology, the risk that products may not result from development activities, protection of its intellectual property, ability to establish and successfully complete clinical trials for product approval, need for regulatory approvals, dependence on it partners for development of certain projects, and other factors discussed in the Company’s periodic filings with the Securities and Exchange Commission. The Company is not responsible for updating the events contained herein after the date on this press release.
PALATIN TECHNOLOGIES, INC.
(A Development Stage Enterprise)
Consolidated Balance Sheets
(unaudited)
December 31, June 30,
2001 2001
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 15,023,906 $ 11,456,424
Prepaid expenses and other 535,493 204,731
------------- -------------
Total current assets 15,559,399 11,661,155
Property and equipment, net 1,071,529 1,924,962
Restricted cash 613,075 613,075
Other 189,479 45,017
------------- -------------
$ 17,433,482 $ 14,244,209
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,990,979 $ 1,129,660
Accrued expenses 285,630 397,119
Accrued compensation 227,086 607,286
Deferred license revenue 111,110 166,666
------------- -------------
Total current liabilities 2,614,805 2,300,731
------------- -------------
Deferred license revenue - 27,778
------------- -------------
Commitments and contingencies
Stockholders' equity:
Preferred stock of $.01 par value - authorized 10,000,000 shares;
Series A Convertible; 29,317 issued
and outstanding as of December 31,
2001 and June 30, 2001,
respectively; 293 293
Series C Convertible; 700,000
shares issued and outstanding as
of December 31, 2001 and June 30,
2001 respectively; 7,000 7,000
Common stock of $.01 par value –
authorized 75,000,000 shares;
Issued and outstanding 16,106,389
and 11,199,658 shares as of
December 31, 2001 and June 30,
2001, respectively; 161,063 111,997
Additional paid-in capital 76,142,485 65,981,568
Deferred compensation (49,543) (80,119)
Unrealized loss on investments (554) -
Deficit accumulated during
development stage (61,442,067) (54,105,039)
------------- -------------
Total stockholders' equity 14,818,677 11,915,700
------------- -------------
$ 17,433,482 $ 14,244,209
============= =============
PALATIN TECHNOLOGIES, INC.
(A Development Stage Enterprise)
Consolidated Statements of Operations
(unaudited)
Three Months Six Months
Ended Dec. 31, Ended Dec. 31,
2001 2000 2001 2000
----------- ----------- ----------- -----------
REVENUES:
Grants and
contracts $ - $ 664,793 $ - $ 1,519,874
License fees 41,667 41,667 83,334 83,334
Other - - - -
----------- ----------- ----------- -----------
Total revenues 41,667 706,460 83,334 1,603,208
----------- ----------- ----------- -----------
OPERATING EXPENSES:
Research and
development 3,040,151 2,249,522 4,931,397 4,705,118
General and
administrative 1,015,263 843,473 1,915,161 1,550,049
Loss on impairment
of assets - - 916,518 -
Net intangibles
write down - - - -
----------- ----------- ----------- -----------
Total
Operating
expenses 4,055,414 3,092,995 7,763,076 6,255,167
----------- ----------- ----------- -----------
OTHER INCOME
(EXPENSES):
Interest income 79,974 279,195 182,060 366,487
Interest expense (678) (1,349) (1,356) (3,629)
Merger costs - - - -
----------- ----------- ----------- -----------
Total other
Income
(expenses) 79,296 277,846 108,704 362,858
----------- ----------- ----------- -----------
Loss before
income taxes and
cumulative
effect of
accounting
change (3,934,451) (2,108,689) (7,499,038) (4,289,101)
Income tax benefit 162,010 325,152 162,010 325,152
----------- ----------- ----------- -----------
Loss before
Cumulative
effect of (3,772,441) (1,783,537) (7,337,028) (3,963,949)
accounting
change
Cumulative effect
of accounting
change - - - (361,111)
----------- ----------- ----------- -----------
NET LOSS (3,772,441) (1,783,537) (7,337,028) (4,325,060)
PREFERRED
STOCK
DIVIDEND (285,725) - (285,725) -
----------- ----------- ----------- -----------
NET LOSS
ATTRIBUTABLE
TO COMMON
STOCKHOLDERS $(4,058,166)$(1,783,537)$(7,622,753)$(4,325,060)
=========== =========== =========== ===========
Basic and diluted net
loss per common share:
Basic and diluted
net loss before
cumulative effect
of accounting
change $ (0.31) $ (0.17) $ (0.63) $ (0.43)
Cumulative effect of
accounting change $ (0.00) $ (0.00) $ (0.00) $ (0.04)
----------- ----------- ----------- -----------
Basic and diluted
net loss $ (0.31) $ (0.17) $ (0.63) $ (0.47)
=========== =========== =========== ===========
Weighted average
number of common
shares outstanding
used in computing
basic and diluted
net loss per common
share 13,013,547 10,366,170 12,106,579 9,210,971
=========== =========== =========== ===========
Inception
(January 28, 1986)
Through
----------------
REVENUES:
Grants and
contracts $ 9,543,165
License fees 1,984,297
Other 318,917
------------------
Total revenues 11,846,379
------------------
OPERATING EXPENSES:
Research and
development 47,787,685
General and
Administrative 24,292,276
Loss on impairment
of assets 916,518
Net intangibles
write down 259,334
------------------
Total
operating
expenses 73,255,813
------------------
OTHER INCOME
(EXPENSES):
Interest income 2,323,624
Interest expense (1,957,309)
Merger costs (525,000)
------------------
Total other
Income
(expenses) (158,684)
------------------
Loss before
income taxes and
cumulative
effect of
accounting
change (61,568,118)
Income tax benefit 487,162
------------------
Loss before
Cumulative
effect of (61,080,956)
accounting
change
Cumulative effect
of accounting
change (361,111)
------------------
NET LOSS (61,442,067)
PREFERRED STOCK DIVIDEND (3,407,250)
------------------
NET LOSS ATTRIBUTABLE TO COMMON
STOCKHOLDERS $ (64,849,317)
==================
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