Palatin Technologies Inc. (NYSE MKT:PTN) Q2 2020 Earnings Conference Call - Final Transcript

Feb 11, 2020 • 11:00 am ET

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Palatin Technologies Inc. (NYSE MKT:PTN) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and welcome to the Palatin Technologies Second Quarter Fiscal Year 2020 Operating Results Conference Call. As a reminder, this conference is being recorded.

Before we begin our remarks, I would like to remind you that these 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 results -- I mean, prospects.

Now, I would like to turn the call over to today's host, 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 2020 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.

I'm going to turn the call over to Steve, who will provide the financial update. Steve?

Executive
Stephen T. Wills

Thank you, Carl, and good morning, everyone. Regarding Palatin's quarter ended December 31, 2019, financial and operational highlights include, with respect to Vyleesi, the first as-needed treatment approved for pre-menopausal women with acquired generalized hypoactive sexual desire disorder or HSDD. On January 9, 2020, AMAG announced that as a result of a strategic review, it will divest Vyleesi and another female healthcare product, Intrarosa. AMAG stated that it has received preliminary expressions of interest regarding these assets. Under the Vyleesi license agreement, AMAG has a contractual obligation to use commercially, reasonable efforts to commercialize Vyleesi.

If AMAG materially breaches this obligation and fails to cure such breach, Palatin could potentially have the right to terminate the license agreement and require AMAG to assign and transfer its Vyleesi rights to Palatin. In the event AMAG assigned its Vyleesi license other than to Palatin, the signee must expressly agree to be bound by the Vyleesi license agreement between AMAG and Palatin.

Regarding Vyleesi collaborations, we are advancing discussions with territories outside the currently licensed territories of North America, China and Korea, and we anticipate executing multiple agreements during calendar year 2020. Vyleesi is licensed to Fosun Pharma in China and Kwangdong Pharmaceuticals in South Korea. Both companies are advancing Vyleesi through the regulatory process in the respective territories, which includes the conduct of certain clinical studies in those territories prior to filing for market approval. With respect to Vyleesi and our other programs under development, Dr. Spana will expand on these during his portion of the presentation.

Switching over to financial highlights for the quarter ended December 31, 2019. Regarding revenue, for the quarter ended December 31, 2019, we recognized as revenue $20,610 in reimbursement of shared