Palatin Technologies Inc. (NYSE MKT:PTN) Q4 2020 Earnings Conference Call - Final Transcript

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

Before we begin our remarks, I'd 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 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 turn the call over to today's host, 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 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, including the impact of the COVID-19 pandemic. We sincerely hope that you and your families are safe and healthy as you deal with the life-altering changes brought about by the COVID-19 pandemic. Today, Steve will provide the financial update as well as the update on our reacquisition of Vyleesi from AMAG Pharmaceuticals. I will focus my update on the progress of our development programs, specifically PL-9643 for dry eye disease, Phase II and our PL-8177 COVID-19 program. Steve?

Thank you, Carl, and good morning, everyone. Starting with the financial update. Regarding fourth quarter and fiscal year 2020 financial highlights. Net loss for the fourth quarter ended June 30, 2020, was $7.3 million or $0.03 per basic and diluted share compared to net income of $52.2 million or $0.25 per basic and $0.23 per diluted share for the comparable quarter of 2019.

Net loss for the year ended June 30, 2020, was $22.4 million or $0.10 per basic and diluted share compared to net income of $35.8 million or $0.17 per basic and $0.16 per diluted share for the year ended June 30, 2019. The difference in net loss and net income between the quarter and year ended June 30, 2020, compared to the quarter and year ended June 30, 2019, was due to the recognition of license and contract revenue pursuant to our license agreement with AMAG of $60.3 million for the quarter and year ended June 30, 2019.

As of June 30, 2020, Palatin had $82.9 million in cash and cash equivalents compared to $43.5 million as of June 30, 2019, and no debt. We believe that existing capital resources will be sufficient to fund planned operations through at least September 30, 2021.

Our strong cash position of approximately $83 million at June 30, 2020, and no debt, coupled with the $12 million