Palatin Technologies Inc. (NYSE MKT:PTN) Q4 2019 Earnings Conference Call - Final Transcript
Sep 12, 2019 • 11:00 am ET
Good morning, ladies and gentlemen, and welcome to the Palatin Technologies Fourth Quarter and Fiscal Year End 2019 Operating Results Conference Call.
Before we begin our remarks, I would like to remind you that 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 may 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's prospects.
Now, I would like to introduce you to your host for today, Dr. Carl Spana, President and Chief Executive Officer of Palatin Technologies. Please go ahead, sir.
Thank you. Good morning, and welcome to the Palatin Technologies Fourth Quarter and Fiscal Year End 2019 call. I am 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. I'm going to turn the call over to Steve who will provide financial and certain operational highlights. Steve?
Stephen T. Wills
Thank you, Carl. Good morning, everyone. Regarding Palatin's quarter and year ended June 30, 2019, certain operational and financial highlights include, with respect to Vyleesi, which is approved for female hypoactive sexual desire disorder, in June 2019, the FDA granted marketing approval of AMAG Pharmaceuticals' NDA for Vyleesi, a melanocortin receptor agonist developed by Palatin and indicated for the treatment of premenopausal women with acquired generalized hypoactive sexual desire disorder, referred to as HSDD. The FDA's approval of the NDA triggered a $60 million milestone payment to Palatin under our North American license agreement with AMAG. This $60 million was received in July 2019. Additionally, Palatin is entitled to receive tiered royalties on net sales ranging from high single-digit to low double-digit percentages, and sales milestones based on escalating annual net sales thresholds, the first of which is $25 million, triggered at annual net sales of $250 million. Vyleesi is the first as-needed treatment for premenopausal women with acquired generalized HSDD. It is currently available through specialty pharmacies Avella and BioPlus. And AMAG will launch Vyleesi nationally with its full sales force mid-September. We remain focused on advancing discussions on Vyleesi collaborations for territories outside the currently licensed territories of North America, China and Korea. And we have excellent interest from multiple parties from multiple regions.
With respect to corporate, cash and accounts receivable balances at June 30, 2019, of $102 million is sufficient to cover planned operations through at least calendar 2021. Included in the accounts receivable balance is the $60 million milestone payment due from AMAG for the Vyleesi FDA approval, again which was received in July 2019. Debt and related liabilities decreased from $7.2 million at June 30, 2018, to approximately $800,000 at June 30, 2019.