Palatin Technologies Inc. (NYSE MKT:PTN) Q2 2019 Earnings Conference Call Transcript

Feb 12, 2019 • 11:00 am ET

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Palatin Technologies Inc. (NYSE MKT:PTN) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and welcome to the Palatin Technologies Second Fiscal Quarter 2019 Operating Results Conference Call. As a reminder, this conference is being recorded.

Before we begin our remarks, I would like to remind you that the statements made 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 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 prospects.

Now, I'd like to introduce you to your host for today, Dr. Carl Spana, President and Chief Executive Officer of Palatin Technologies. Please go ahead, sir.

Executive
Carl Spana

Thank you. Good morning and welcome to the Palatin Technologies Second Quarter Fiscal Year 2019 Call. I'm Dr. Carl Spana CEO and President of Palatin. With me on the call today is Steve Wills, Palatin's Executive Vice President, Chief Financial Officer and Chief Operating Officer. On today's call, we will provide financial and operating updates.

Now, I'm going to turn the call over to Steve, who'll provide financial updates. Steve?

Executive
Steve Wills

Thank you, Carl. And good morning, everyone. Regarding Palatin's quarter ended December 31ST, 2018, and recent operational and financial highlights, with respect to Vyleesi, which is under development for female hypoactive sexual desire disorder or HSDD, the FDA PDUFA date is June 23RD, 2019. Of note, if approved Palatin is due to receive a $60 million milestone from AMAG Pharmaceuticals, our North American licensee.

On the Vyleesi business development front, Palatin is in discussions with potential collaboration partners for certain regions outside the licensed territories of North America, China and South Korea. Carl will expand on the Vyleesi program during his portion of the presentation, as well as our other programs under development.

Regarding the quarter ended December 31st, 2018 financial results, Palatin reported a net loss of $5 million or $0.02 per basic and diluted share for the quarter ended December 31st, 2018 compared to net income of $3 million or $0.02 per basic and diluted share for the same period in 2017. The difference in financial results between the three months ended December 31st, 2018 and 2017 was mainly due to the recognition of $10.6 million in license and contract revenue during the 2017 period pursuant to our license agreement with AMAG.

Regarding revenue, there were no revenues recorded in the three months ended December 31st, 2018. For the three months ended December 31st, 2017, 100% of the revenue Palatin recognized was related to our license agreements with AMAG. Regarding operating expenses, total operating expenses for the quarter ended December 31st, 2018, were $5.1 million, compared to $7.7 million for the comparable quarter in 2017. The decrease in operating expenses reflects the completion of the Vyleesi Phase 3 clinical trial program and related ancillary studies necessary to file the NDA