Palatin Technologies reports net loss of $2.0M for third-quarter 2010

Palatin Technologies, Inc. (NYSE Amex: PTN), a biopharmaceutical company focused on discovering and developing targeted, receptor-specific small molecule and peptide therapeutics, today announced results for its third quarter ended March 31, 2010.  Palatin reported a net loss of $2.0 million, or ($0.02) per basic and diluted share for the quarter ended March 31, 2010, compared to net income of $0.1 million, or $0.00 per basic and diluted share for the same period in 2009.  Total revenues in the quarter ended March 31, 2010 were $2.6 million, compared to $5.2 million for the same period in 2009.  

The net loss for the quarter ended March 31, 2010, compared to the net income for the quarter ended March 31, 2009, was primarily attributable to a decrease in the recognition of revenue under our agreements with AstraZeneca.

As of March 31, 2010, Palatin's cash, cash equivalents and investments totaled $10.2 million, compared to $7.8 million at June 30, 2009.  The increase in cash, cash equivalents, and investments is primarily the net result of the receipt of $5.0 million in milestone payments from AstraZeneca related to the September 2009 amendment to the license and collaboration agreement, net proceeds of $5.2 million from the sale of common stock and warrants in two registered direct offerings, and the cash utilized to fund operations during the nine months ended March 31, 2010.

Revenue

For the quarter ended March 31, 2010, Palatin recognized $2.6 million of contract revenue under its license and collaboration agreement with AstraZeneca, compared to $5.2 million for the same period in 2009.  Based on the September 2009 amendment, Palatin provided research services to AstraZeneca through January 30, 2010 and recognized contract revenue accordingly.  

Costs and Expenses

Total operating expenses for the quarter ended March 31, 2010 were $4.6 million, compared to $5.1 million for the comparable quarter of 2009.  Included as a component of operating expenses were non-cash, share-based expenses of $0.2 million and $0.3 million for the third quarter of fiscal year 2010 and 2009, respectively.