GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Palatin Technologies Inc Reports Operating Results (10-Q)

May 12, 2010 | About:
10qk

10qk

18 followers
Palatin Technologies Inc (PTN) filed Quarterly Report for the period ended 2010-03-31.

Palatin Technologies Inc has a market cap of $33.8 million; its shares were traded at around $0.3162 with a P/E ratio of 7.9 and P/S ratio of 3. PTN is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Jim Simons of Renaissance Technologies LLC, Kenneth Fisher of Fisher Asset Management, LLC.

Highlight of Business Operations:

Revenue – For the three and nine months ended March 31, 2010, we recognized $2.6 million and $13.5 million, respectively, in revenue pursuant to our license agreement with AstraZeneca, compared to $5.2 million and $7.1 million, respectively, for three and nine months ended March 31, 2009.

Revenue for the three and nine months ended March 31, 2010 consisted of $0.5 million and $2.5 million, respectively, related to our research services performed during those periods, and $2.1 million and $11.0 million, respectively, of revenue related to AstraZeneca s license fees. Revenue for the three and nine months ended March 31, 2009 consisted of $4.8 million and $5.9 million, respectively, related to our research services performed during those periods, and $0.4 million and $1.2 million, respectively, of revenue related to AstraZeneca s license fees. The increase in revenue relating to AstraZeneca s license fees is related primarily to revision of the period during which we may perform research services for purposes of revenue recognition and secondarily to the receipt of additional license fees. The research services obligation under our agreement with AstraZeneca expired in January 2010. There were no substantive development activities on our NeutroSpec program during the three and nine months ended March 31, 2010 and 2009, and we do not anticipate any substantive development activities on the NeutroSpec program in the fiscal year ending June 30, 2010, though the agreement with Mallinckrodt has not been terminated. We may also earn contract revenue based on the attainment of milestones under our agreement with AstraZeneca.

Research and Development – Research and development expenses decreased to $3.4 million for the three months ended March 31, 2010 from $3.8 million for the three months ended March 31, 2009. Research and development expenses decreased to $8.7 million for the nine months ended March 31, 2010 from $10.3 million for the nine months ended March 31, 2009. The decrease is the result of the restructuring of our clinical-stage product portfolio and development programs.

Research and development expenses related to our bremelanotide, PL-3994, PL-6983, obesity, NeutroSpec and other preclinical programs were $1.4 million and $2.5 million, respectively, for the three and nine months ended March 31, 2010 compared to $1.6 million and $3.2 million, respectively, for the three and nine months ended March 31, 2009. Spending to date has been primarily related to the identification and optimization of lead compounds, and secondarily to study the effects of melanocortin receptor-specific compounds on food intake, obesity and other metabolic parameters and preclinical studies and a Phase 1 trial with subcutaneously administered bremelanotide. The amount of such spending and the nature of future development activities are dependent on a number of factors, including primarily the availability of funds to support future development activities, success of our clinical trials and preclinical and discovery programs, and our ability to progress compounds in addition to bremelanotide and PL-3994 into human clinical trials.

General and Administrative – General and administrative expenses decreased to $1.2 million and $3.5 million, respectively, for the three and nine months ended March 31, 2010 compared to $1.3 million and $3.9 million, respectively, for the three and nine months ended March 31, 2009. The decrease is primarily related to management s refinement of operations and expense control

During the nine months ended March 31, 2010, cash provided by financing activities was $4.9 million, consisting primarily of net proceeds of approximately $5.2 million from the sales in August 2009 and February 2010 of 9,484,848 units and 9,629,629 units, respectively, in registered direct offerings. Each unit from the August 2009 offering consisted of one share of common stock and a five-year warrant to purchase 0.35 shares of common stock at an exercise price of $0.33 per share. Each unit from the February 2010 offering consisted of one share of common stock, a Series A warrant exercisable for 0.33 shares of our common stock at an exercise price of $0.30 per share of common stock and a Series B warrant exercisable for 0.33 shares of common stock at an exercise price of $0.27 per share of common stock. The Series A warrant is exercisable one 181 days from the date of issuance and expires three years thereafter, the Series B warrant was exercisable immediately upon issuance and expires 180 days from the date of issuance.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 4.0/5 (1 vote)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide