Earnings release
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Palatin Reports First Quarter Fiscal Year 2026 Financial Resultsand Provides Corporate Update Nov 13, 2025, 07:30 ETSignificant progress on multiple fronts – obesity pipeline advancing towards the clinic, out-licensingcollaboration, strengthened balance sheet, and reinstatement of NYSE American tradingMelanocortin-based therapies for obesityPL7737 IND-enabling toxicology underway; IND submission and clinical trial initiation planned for thefirst half of 2026Next-generation selective peptide MC4R agonists d esigned for once-weekly subcutaneous dosing;IND submission and clinical trial initiation planned for mid-2026Research Collaboration, License and Patent Assignment Agreement with Boehringer Ingelheim for thetreatment of retinal diseases in August 2025Received €2.0M ($2.3M) upfrontAchieved €5.5M ($6.5M) research milestone in September 2025$18.2 million public offering, including full exercise of the over-allotment option, closed on November 12,2025Regained compliance with NYSE American listing standards – common stock resumed trading underthe symbol “PTN” on November 12, 2025Teleconference and Webcast to be held on Thursday, November 13, 2025, at 11:00 AM ESTPRINCETON, N.J., Nov. 13, 2025 /PRNewswire/ — Palatin Technologies, Inc. (NYSE American: PTN), abiopharmaceutical company developing first-in-class medicines based on molecules that modulate the activityof the melanocortin receptor (MCR) system, today announced financial results for its fiscal first quarter endedSeptember 30, 2025 and provided a corporate update.“Palatin’s melanocortin-based obesity programs are advancing rapidly, led by our oral small molecule PL7737,which is on track to enter clinical studies in the first half of next year,” said Carl Spana, Ph.D., President andCEO of Palatin “The strength of our preclinical data and our ability to target both broad and rare obesityindications – particularly neuroendocrine diseases such as hypothalamic obesity, underscore the differentiatedpotential of our melanocortin platform and our commitment to transforming obesity treatment.”“The execution of our collaboration with Boehringer Ingelheim, completion of our $18.2 million public offering,and reinstatement of NYSE American trading mark an important inflection point for Palatin,” continued Dr.Spana. “As we move into 2026, we are well positioned with a strengthened balance sheet, a global partnershipdelivering near-term milestones, and a robust pipeline of clinical catalysts that collectively support meaningfullong-term value creation.”Obesity Program Update PL7737 (oral MC4R agonist):Demonstrated robust weight loss, strong safety, and high oral bioavailability in preclinical models.IND-enabling toxicology studies are ongoing, with an IND filing and initiation of a Phase 1 single- andmultiple-ascending dose (SAD/MAD) trial expected in the first half of 2026.Phase 1 studies are planned to include patients with hypothalamic obesity.The U.S. FDA has granted Orphan Drug Designation for the treatment of leptin receptor (LEPR)deficiency–related obesity.Next-generation selective peptide MC4R agonists:Designed for once-weekly subcutaneous dosing, with an IND filing and Phase 1 SAD/MAD trialplanned for mid-2026.Phase 1 studies are also expected to include patients with hypothalamic obesity.Pre-clinical and early clinical data support co-administration with tirzepatide as a safe, potentiallysynergistic approach to weight management.Out-Licensing Programs UpdateRetinal diseases (MCR agonists) – Boehringer Ingelheim collaborationReceived an upfront payment of €2.0 million ($2.3 million) in August 2025.Achieved €5.5 million ($6.5 million) research milestone in September 2025.Eligible to receive up to €12.5 million ($14.5 million) in additional near-term research milestones andup to €260 million ($307.0 million) in development, regulatory, and commercial milestones, plustiered royalties on future net sales. PL9643 (MCR agonist) – Dry Eye DiseaseReported positive Phase 3 MELODY-1 results, with 6 of 13 symptom endpoints showing statisticallysignificant complete symptom resolution versus placebo (p<0.05).Out-licensing discussions are ongoing.PL8177 (MCR agonist) – Ulcerative ColitisAchieved positive Phase 2 proof-of-concept results.Out-licensing discussions are ongoing.Diabetic nephropathy (MCR agonists)Reported positive Phase 2 open label data.Out-licensing discussions are ongoing.Corporate UpdatePublic OfferingOn November 12, 2025, Palatin announced the closing of its upsized $18.2 million underwritten public offering(“Offering”), including the full exercise of the over-allotment option, consisting of 2,795,384 shares of commonstock (or pre-funded warrants in lieu thereof) of the Company, together with Series J warrants to purchase upto 2,795,384 shares of common stock (or pre-funded warrants in lieu thereof), (the “Series J Warrants”), andSeries K warrants to purchase up to 2,795,384 shares of common stock (or pre-funded warrants in lieuthereof), (the “Series K Warrants”), at a combined public offering price of $6.50 per share of common stock andaccompanying Series J and Series K warrants (the “Offering”).Each Series J Warrant will have an exercise price of $6.50 per share and will be immediately exercisable. TheSeries J Warrants will expire on the earlier of (i) the eighteen-month anniversary of the original issuance dateor (ii) on the 31st calendar day following the date that the Company receives the U.S. Food and DrugAdministration (“FDA”) acceptance of the Company’s Investigational New Drug for an in-house obesitytreatment compound (long-acting peptide or oral small molecule) (the “FDA Exercise Period”). Each Series KWarrant will have an exercise price of $8.125 per share and will be immediately exercisable. The Series K
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Warrants will expire on the five-year anniversary of the original issuance date, however, if a holder’s Series JWarrants have not been terminated in accordance with their terms prior to the expiration of the FDA ExercisePeriod, such holder’s Series K Warrants will terminate automatically upon the earlier of the (i) eighteen-monthanniversary of the original issuance date of the Series J Warrant or (ii) the expiration of the FDA ExercisePeriod and prior to the five-year anniversary of the issuance of the Series K Warrant.The gross proceeds from the Offering, before deducting the underwriting discounts and commissions andoffering expenses, are expected to be approximately $16.9 million. The Company may receive additionalproceeds of up to $18.2 million upon the cash exercise of the milestone related Series J Warrants, however,there is no guarantee that such warrants will be exercised and accordingly that the Company will receive anyproceeds from the exercise thereof.The Company intends to use the net proceeds from the Offering to support the development of its obesityprogram and for working capital and general corporate purposes.NYSE AmericanAs a result of the closing of the Offering, the Company regained compliance with NYSE American continuedlisting standard under Section 1003(a)(iii) of the NYSE American Company Guide (the “Stockholders’ EquityRule”) and all applicable requirements for continued listing on NYSE American. Effective November 12, 2025,the Company’s common stock resumed trading on the NYSE American under the symbol “PTN” and CUSIP“696077601”.Fiscal First Quarter Ended September 30, 2025 Financial ResultsRevenueFor the quarter ended September 30, 2025, Palatin recognized $8,847,550 in collaboration and licenserevenue compared to $0 for the comparable quarter last year. The increase in collaboration and licenserevenue is related to the Boehringer Ingelheim agreement which consisted of an upfront payment, theachievement of a research milestone, and certain cost related reimbursements.Operating ExpensesTotal operating expenses were $4.2 million for the first quarter ended September 30, 2025, compared to $7.8million for the comparable quarter last year. The decrease was mainly related to a decrease in spending on ourMCR development programs.Other Income / (Expense)Total other income (expense), net was $16,481 for the quarter ended September 30, 2025, compared to$(58,964) for the comparable quarter last year. The increase was a result of foreign currency transactionlosses incurred during the quarter ended September 30, 2024 and a decrease in interest expense offset by adecrease in investment income.Cash FlowsPalatin’s net cash used in operations for the quarter ended September 30, 2025, was $1.6 million, compared tonet cash used in operations of $7.0 million for the comparable quarter last year. The decrease in net cash usedin operations was mainly due to the recognition of license and contract revenue recognized during the quarterended September 30, 2025, related to the Boehringer Ingelheim agreement.Net Income / (Loss)Palatin reported net income for the quarter ended September 30, 2025, of $4.7 million, or $4.81 per basiccommon shares and $4.26 per diluted common share, compared to a net loss of $7.8 million, or $(19.71) perbasic and diluted common share, for the comparable quarter last year.The increase in net income for the quarter ended September 30, 2025, was mainly due to the revenuerecognized pursuant to the Boehringer Ingelheim agreement and the decrease in operating expenses.Cash PositionAs of September 30, 2025, Palatin’s cash and cash equivalents were $1.3 million, compared to cash and cashequivalents of $2.6 million as of June 30, 2025.The $1.3 million of cash and cash equivalents as of September 30, 2025, does not include approximately $6.5million milestone payment pursuant to our retinal disease collaboration with Boehringer Ingelheim in October2025 and the net proceeds from the Company’s underwritten public offering of approximately $16.9 million innet proceeds which closed on November 12, 2025. Palatin currently expects a cash runway beyond the quarterending December 31, 2026.Conference Call / WebcastPalatin will host a conference call and audio webcast on November 13, 2025, at 11:00 a.m. Eastern Time todiscuss the results of operations in greater detail and provide an update on corporate developments.Individuals interested in listening to the conference call live can dial 1-877-545-0320 (US) or 1-973-528-0002 (International), Participant Access Code: 614229. The audio webcast and replay can be accessed bylogging on to the “Investor-Webcasts” section of Palatin’s website at http://www.palatin.com. A telephone andaudio webcast replay will be available one hour afterthe completion of the call. To access the telephone replay, dial 1-877-481-4010 (US) or 1-919-882-2331(International), replay passcode: 53237. The webcast and telephone replay will be available through November27, 2025.Melanocortin-4 Receptor Agonists Effect on ObesityHypothalamic neurons expressing the melanocortin-4 receptor (MC4R) play a central role in regulating storedenergy, food intake, and body weight. Genetic mutations that inhibit signaling through the MC4R pathway leadto hyperphagia, decreased energy expenditure and early-onset obesity; such mutations have been identifiedas the cause of several rare genetic obesity disorders. MC4R agonism represents an attractive target forpotential obesity treatments.About Hypothalamic ObesityHypothalamic obesity is a rare and severe form of obesity caused by dysfunction or damage to thehypothalamus, the region of the brain that regulates appetite, satiety, and energy balance. Hypothalamicobesity can occur as an acquired condition, most commonly after surgery or radiation therapy for brain tumorssuch as craniopharyngioma, or as a congenital disorder associated with genetic syndromes and developmentalabnormalities affecting hypothalamic function. Individuals with hypothalamic obesity typically experience rapid,excessive weight gain, uncontrollable hunger, and profound metabolic disturbances that are resistant toconventional diet, exercise, and behavioral interventions. There are currently no approved pharmacologictreatments specifically indicated for hypothalamic obesity, representing a significant unmet medical need.About Melanocortin Receptor AgonistsThe melanocortin receptor (“MCR”) system has effects on inflammation, immune system responses,metabolism, food intake, and sexual function. There are five melanocortin receptors, MC1R through MC5R.Modulation of these receptors, through use of receptor-specific agonists, which activate receptor function, orreceptor-specific antagonists, which block receptor function, can have medically significant pharmacologicaleffects.About PalatinPalatin is a biopharmaceutical company developing first-in-class medicines based on molecules that modulatethe activity of the melanocortin receptor systems, with targeted, receptor-specific product candidates for thetreatment of diseases with significant unmet medical need and commercial potential. Palatin’s strategy is todevelop products and then form marketing collaborations with industry leaders to maximize their commercialpotential. For more information, visit the company’s website at www.palatin.com and follow us on X (formallyTwitter) @PalatinTech.Forward-looking StatementsStatements in this press release that are not historical facts, including statements about future expectations of
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Palatin Technologies, Inc., such as statements about Palatin products in development, clinical trial results,potential actions by regulatory agencies, regulatory plans, development programs, proposed indications forproduct candidates, and market potential for product candidates are “forward-looking statements” within themeaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 andas that term is defined in the Private Securities Litigation Reform Act of 1995. Palatin intends that suchforward-looking statements be subject to the safe harbors created thereby. Such forward-looking statementsinvolve known and unknown risks, uncertainties and other factors that could cause Palatin’s actual results tobe materially different from its historical results or from any results expressed or implied by such forward-looking statements. Palatin’s actual results may differ materially from those discussed in the forward-lookingstatements for reasons including, but not limited to, results of clinical trials, regulatory actions by the FDA andother regulatory and the need for regulatory approvals, Palatin’s ability to fund development of its technologyand establish and successfully complete clinical trials, the length of time and cost required to complete clinicaltrials and submit applications for regulatory approvals, products developed by competing pharmaceutical,biopharmaceutical and biotechnology companies, commercial acceptance of Palatin’s products, and otherfactors discussed in Palatin’s periodic filings with the Securities and Exchange Commission. Palatin is notresponsible for updating events that occur after the date of this press release.Palatin Technologies is a registered trademark of Palatin Technologies, Inc. PALATIN TECHNOLOGIES, INC and Subsidiary Consolidated Statements of Operations (unaudited) Three Months Ended September 30, 2025 2024 REVENUES Collaboration and license$ 8,847,550$ – OPERATING EXPENSES Research and development2,525,7665,743,754 Selling, general and administrative1,660,7312,020,931 Total operating expenses4,186,4977,764,685 Income (Loss) from operations4,661,053(7,764,685) OTHER INCOME (EXPENSE) Investment income18,483 78,576 Foreign currency transaction gain (loss)– (131,600) Interest expense(2,002) (5,940) Total other (expense) income, net16,481 (58,964) NET INCOME (LOSS)$ 4,677,534$ (7,823,649) Basic net income (loss) per common share$ 4.81$ (19.71) Diluted net income (loss) per common share$ 4.26$ (19.71) Weighted average number of common sharesoutstanding used in computing basic net income(loss) per common share971,650396,909 ®
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Weighted average number of common sharesoutstanding used in computing diluted net income(loss) per common share1,098,490396,909 PALATIN TECHNOLOGIES, INC and Subsidiary Consolidated Balance Sheets (unaudited) September 30, 2025June 30, 2025 ASSETS Current assets: Cash and cash equivalents$ 1,273,083$ 2,564,265 Accounts receivable 6,886,441– Other receivables 19,786 29,468 Prepaid expenses and other current assets190,468325,695 Total current assets 8,369,7782,919,428 Property and equipment, net115,057 129,444 Right-of-use assets – operating leases129,825161,166 Other assets – 56,916 Total assets $ 8,614,660$ 3,266,954 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIENCY) Current liabilities: Accounts payable $ 7,405,849$ 6,998,806 Accrued expenses 679,966881,412 Short-term operating lease liabilities132,446129,812 Total current liabilities 8,218,2618,010,030 Long-term operating lease liabilities– 33,969 Total liabilities 8,218,2618,043,999 Stockholders’ equity (deficiency): Preferred stock of $0.01 par value – authorized 10,000,000 shares: shares issued and outstanding designated as follows: Series A Convertible: authorized 4,030 shares as of September 30, 2025: issued and outstanding 4,030 shares as of September 30, 2025 and June 30, 202540 40 Series D Convertible: authorized 3,400 shares as of September 30, 2025: issued andoutstanding 3,400 shares
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and outstanding 3,400 shares as of September 30, 2025 and June 30, 202534 34 Common stock of $0.01 par value – authorized 300,000,000 shares: issued and outstanding 973,291 shares as of September 30, 2025 and 929,597shares as of June 30, 20259,734 9,296 Additional paid-in capital454,782,956454,287,484 Accumulated deficit (454,396,365)(459,073,899) Total stockholders’ deficiency 396,399(4,777,045) Total liabilities and stockholders’ deficiency $ 8,614,660$ 3,266,954 SOURCE Palatin Technologies, Inc.