Palatin Tech Reports Second Quarter Fiscal Year 2016 Results; Teleconference And Webcast To Be Held On February 16, 2016

CRANBURY, N.J., Feb. 16, 2016 /PRNewswire/ -- Palatin Technologies, Inc. (NYSE MKT: PTN), a biopharmaceutical company developing targeted, receptor-specific peptide therapeutics for the treatment of diseases with significant unmet medical need and commercial potential, today announced results for its second quarter ended December 31, 2015. 

Recent Highlights

• Bremelanotide development for Female Sexual Dysfunction (FSD):
  • Palatin's two Phase 3 clinical trials for the treatment of FSD initiated in December 2014 and January 2015 are progressing as planned and meeting target objectives.
  • Patient enrollment was completed in the fourth quarter of 2015.
  • Top-line results are expected to be released in the third quarter of calendar year 2016.
  • The clinical trials are designed to randomize approximately 1,100 women (~550 each trial) to evaluate efficacy and safety of subcutaneous bremelanotide in premenopausal women with hypoactive sexual desire disorder as an on-demand, as-needed treatment. For more information visit reconnectstudy.com.

Second Quarter Fiscal 2016 Financial Results
Palatin reported a net loss of $(13.2) million, or $(0.08) per basic and diluted share, for the quarter ended December 31, 2015, compared to net income of $2.8 million, or $0.03 per basic and diluted share, for the same period in 2014.    

The difference for the three months ended December 31, 2015 and 2014 was primarily attributable to the revenue recognition of the upfront payment relating to the license agreement with Gedeon Richter in the quarter ended December 31, 2014 and secondarily to the increase in expenses relating to the Phase 3 clinical trial program with bremelanotide for FSD in the quarter ended December 31, 2015.

Revenue
There were no revenues recorded in the quarter ended December 31, 2015. For the quarter ended December 31, 2014, Palatin recognized $4.9 million of license revenue plus approximately $3.1 million from a development milestone upon the start of the reconnect study in the U.S. under a license agreement that was subsequently terminated.

Operating Expenses
Total operating expenses for the quarter ended December 31, 2015 were $12.6 million compared to $5.7 million for the comparable quarter of 2014.  The increase in operating expenses for the quarter ended December 31, 2015 was the result of an increase in costs primarily relating to the Phase 3 clinical trial program with bremelanotide for FSD.

Other Income/Expense
Total other income (expense), net, was $(0.6) million for the quarter ended December 31, 2015 consisting primarily of interest expense related to the venture debt and $(0.1) million for the quarter ended December 31, 2014 primarily consisting of a foreign exchange transaction loss.

Cash Position
Palatin's cash, cash equivalents and investments were $33.4 million as of December 31, 2015, compared to cash and cash equivalents $27.3 million at June 30, 2015.  Current liabilities were $10.0 million as of December 31, 2015, compared to $7.4 million as of June 30, 2015.

Palatin believes that existing capital resources will be adequate to fund our planned operations through the quarter ending September 30, 2016.

CONFERENCE CALL / WEBCAST
Palatin will host a conference call and webcast on February 16, 2016 at 11:00 a.m. Eastern Time to discuss the results of operations in greater detail and an update on corporate developments.  Individuals interested in listening to the conference call live can dial 1-888-364-3109 (domestic) or 1-719-457-2689 (international), pass code 1451856.  The webcast and replay can be accessed by logging on to the "Investor/Media Center-Webcasts" section of Palatin's website at http://www.palatin.com. 

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