Revenue: No product sales recorded for Q1 FY2025 due to the sale of Vyleesi rights; previous year’s Q1 net product revenue was $2.1 million.
Operating Expenses: $7.8 million for Q1 FY2025, down from $8.2 million in Q1 FY2024.
Net Cash Used in Operations: $7 million for Q1 FY2025, up from $5.9 million in Q1 FY2024.
Net Loss: $7.8 million for Q1 FY2025, compared to $5.2 million in Q1 FY2024.
Cash and Cash Equivalents: $2.4 million as of September 30, 2024, down from $9.5 million as of June 30, 2024.
Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Palatin Technologies Inc (PTN) completed the sale of Vyleesi’s worldwide rights for female sexual dysfunction to Cosette Pharmaceuticals for up to $171 million, providing a significant financial boost.
The company is focusing its future investments on core programs in obesity, which is a market expected to exceed $100 billion annually.
Palatin’s Phase II study on obesity treatment is fully enrolled, with top-line results expected in the first quarter of 2025, indicating strong progress in their research efforts.
There is significant interest from multiple parties in Palatin’s Phase III dry eye disease program and other early-stage programs, suggesting potential for lucrative partnerships or out-licensing deals.
Palatin’s novel MCR4 compounds have reduced potential for side effects like skin darkening, which could offer competitive advantages over existing treatments.
Palatin Technologies Inc (PTN) reported no product sales for the first quarter ended September 30, 2024, due to the sale of Vyleesi, impacting immediate revenue streams.
The company’s net loss increased to $7.8 million for the quarter ended September 30, 2024, compared to $5.2 million for the same period in 2023.
Cash and cash equivalents significantly decreased from $9.5 million as of June 30, 2024, to $2.4 million as of September 30, 2024, indicating a potential liquidity concern.
Operating expenses remain high at $7.8 million for the quarter, despite a decrease from the previous year, due to increased spending on MCR programs.
The company faces challenges in balancing its focus on obesity programs while exploring strategic options for non-obesity assets, which may dilute management’s attention and resources.
Q: For the ulcerative colitis program, are all options available for partnering and discussions? A: Yes, particularly with larger companies. We have significant interest from about 5 or 6 large companies under CDA, and we are confident that with positive outcomes, the program will be out-licensed. – Carl Spana, CEO
Q: Regarding the obesity focus, what are you viewing as a successful trial for the 801 study? A: We aim to demonstrate that combining melanocortin mechanisms with incretin therapy enhances weight loss. This exploratory study will evaluate increased weight loss, weight loss maintenance, lean muscle mass preservation, and safety. – Carl Spana, CEO
Q: How do you view your MCR4 long-acting peptide and oral small molecule approaches in the obesity market? A: Both approaches have broad applicability, potentially serving as monotherapies or combination therapies. They can address weight loss maintenance and primary treatment, offering utility across various patient populations. – Carl Spana, CEO
Q: Where does Palatin fit in the broader obesity market, especially concerning hypothalamic obesity? A: We are evaluating our role in hypothalamic obesity, aiming for orally active small molecules or long-acting peptides without skin darkening side effects, which are improvements over first-generation compounds. – Carl Spana, CEO
Q: Can you elaborate on the strategic options and business development opportunities Palatin is considering? A: We are exploring various options, including out-licensing, corporate combinations, and engaging with different types of companies. We aim to keep our options open to secure the best transactions for Palatin and its shareholders. – Steve Wills, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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