• Gross Product Sales: $4.3 million for the second quarter ended December 31, 2024.
• Net Product Revenue: $2 million for the second quarter ended December 31, 2024.
• Total Operating Expenses: $2.6 million, net of a $2.5 million gain on sale, for the second quarter ended December 31, 2024.
• Net Loss: $2.4 million for the quarter ended December 31, 2024, compared to $7.8 million for the same period in 2023.
• Net Cash Used in Operations: $4.8 million for the quarter ended December 31, 2024, compared to $10.5 million for the same period in 2023.
• Cash and Cash Equivalents: $3.4 million as of December 31, 2024.
• Fair Value Adjustment Loss: $8.1 million for the quarter ended December 31, 2024.

• Warning! GuruFocus has detected 3 Warning Signs with PTN.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Palatin Technologies Inc (PTN) reported a significant decrease in net cash used in operations, from $10.5 million in the previous year to $4.8 million for the quarter ended December 31, 2024.
• The company achieved a reduction in net loss, reporting a net loss of $2.4 million for the quarter, compared to $7.8 million for the same period in 2023.
• Palatin Technologies Inc (PTN) completed a Phase 2 study on obesity treatment, with topline data expected soon, indicating progress in their research and development efforts.
• The company is actively engaged in discussions with potential partners for out-licensing opportunities, particularly in their ulcerative colitis and diabetic kidney disease programs.
• Palatin Technologies Inc (PTN) has a strategic focus on developing Melanocortin-4 receptor agonists for obesity treatment, a market projected to exceed $100 billion annually.

Negative Points

• Palatin Technologies Inc (PTN) did not record any product sales to pharmacy distributors for the second quarter ended December 31, 2024, following the sale of rights to COSAT Pharmaceuticals.
• The company recorded a fair value adjustment loss of $8.1 million related to warrant liabilities, impacting their financial results.
• Palatin Technologies Inc (PTN) reported a decrease in cash and cash equivalents, with $3.4 million as of December 31, 2024, down from $9.5 million as of June 30, 2024.
• The company is reliant on securing additional funding sources for future operating cash requirements, indicating potential financial constraints.
• Palatin Technologies Inc (PTN) faces uncertainties and risks associated with their forward-looking statements, as highlighted in their SEC filings.

Q & A Highlights

Q: Can you discuss the benchmarks for the upcoming obesity data and what would be considered a win for your study regarding weight loss at 8 weeks? A: Carl Spana, President and CEO, explained that the study is a signal detection study without a preconceived number. They are looking for a clear signal, such as a higher percentage of weight loss in the combined arm and key metrics like the percentage of patients achieving significant weight loss. The study aims to see if the co-administration can reverse the slowdown in weight loss seen with Tirzepatide monotherapy. They are also interested in whether Bremelanotide alone can blunt weight regain, indicating weight loss maintenance.

Q: Are there additional indications you might consider beyond the broader weight loss community, such as orphan indications for MCR-4? A: Carl Spana mentioned that there is a growing opportunity for using melanocortin-4 receptor agonists in rare and orphan syndromic diseases, such as Prader Willi syndrome and Barde Bartle. Hypothalamic obesity is a significant market opportunity, and their new compounds are expected to be competitive in this space. They are likely to focus on the rare space for these indications.

Q: What are the key concepts you are looking for in the obesity study? A: Carl Spana stated that they are looking for an increase in absolute weight loss on a percentage basis, without a specific magical number. The study is not optimized for a big jump but aims to get a clear signal. They are also interested in the Bremelanotide alone arm versus the placebo arm to see if it can blunt weight regain, supporting the concept of weight loss maintenance.

Q: How does the investment community's viewpoint affect your study's benchmarks? A: Joseph Pantginis noted that the investment community might compare the study against benchmarks, which could drive expectations for a win from a percentage standpoint. Carl Spana acknowledged this but emphasized their approach of looking for a clear signal rather than focusing on specific benchmarks.

Q: What is the significance of the upcoming data for Palatin Technologies? A: Carl Spana expressed excitement about the upcoming data and the potential impact on their strategy. The results will be crucial for their focus on Melanocortin-4 Receptor obesity assets, which they believe will play a significant role in the future of obesity treatment and weight loss management.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.