Palatin Techs (AMEX:PTN) held its third-quarter earnings conference call on Wednesday. Below is the complete transcript from the call.
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Access the full call at https://www.webcaster5.com/Webcast/Page/2953/54002
Summary
Palatin Techs reported $3.9 million in collaboration and license revenue for Q3 2026, marking an increase from no revenue in the prior year, primarily due to the Altanisbac agreement.
The company recorded a net loss of $1.4 million, significantly improved from a $4.8 million net loss in the previous year, driven by increased revenue.
Palatin Techs is advancing its melanocortin 4 receptor therapies for rare obesity disorders, focusing on improving tolerability and usability, with plans to submit an IND for their peptide program in Q4 2026.
The company has strategic partnerships, including with Bergel Ingelheim and Altanisbac Labs, providing non-dilutive capital and future royalty opportunities.
Management is confident in developing best-in-class therapies, highlighting improvements in selectivity and potency, especially in their oral small molecule program.
Full Transcript
OPERATOR
Hello everyone. Welcome to Palatin’s third quarter fiscal year 2026 operating results conference call. At this time, all participants are on a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press 0 on your telephone keypad. As a reminder, this conference call is being recorded. Before we begin our remarks, I would like to remind you that the statements made by Palatin are not historical facts and may be forward looking statements. These statements are based on assumptions that may or may not prove to be accurate and that the actual results may differ materially from those anticipated and due to the variety of risks and uncertainties discussed in the Company’s recent filings with the Securities and Exchange Commission. Please consider such risks and uncertainties carefully in evaluating these forward looking statements by Palatin’s prospects. Now I would like to turn the call over to your host, Dr. Carl Spana, President and Chief Executive Officer of Palatin. Please go ahead. Thank you.
Dr. Carl Spana (President and Chief Executive Officer)
Good morning and welcome to the Palatin third quarter fiscal year 2026 call. I’m Dr. Carl Spana, CEO and President of Palatin. With me on the call today is Steve Wills, Palatin’s Chief Financial Officer and Chief Operating Officer. Earlier today we issued a press release reporting Palatin’s financial results for the third quarter of fiscal year 2026 and are now providing a corporate update. Today we will highlight our Progress advancing our melanocortin 4 receptor based obesity pipeline review recent strategic and financial milestones and outline our priorities as we move through 2026 followed by a question and answer session. First, I will turn the call over to Steve for the financial and operating results.
Steve Wills (Chief Financial Officer and Chief Operating Officer)
Steve thank you Carl and hello everyone. I will briefly review our financial results for the fiscal third quarter ended March 31, 2026. Beginning with revenue for the third quarter we recognized 3.9 million in collaboration and license revenue compared to no revenue in the prior year period. The increase was primarily related to the revenue recognition of the upfront consideration under the Altanisbac agreement. Turning to operating expenses, total operating expenses for the quarter were 5.5 million compared to 4.8 million in the prior year period which included a 0.4 million gain on purchase commitment. The increase was primarily attributable to higher compensation costs and professional fees. Net cash used in operations for the quarter was 4.4 million compared to 5.4 million in the prior year period. The reduction in cash used in operations was primarily driven by collaboration and license revenue recognized during the quarter. Net loss for the third quarter of fiscal 2026 was 1.4 million or 37 cents per basic and diluted common share, compared to a Net loss of 4.8 million or $9.13 per basic and diluted common share for the prior period. The improvement in net loss was primarily related to collaboration and license revenue recognized during the quarter. Turning to our balance sheet and liquidity position, as of March 31, 2026, Peloton had cash and cash equivalents of 10.2 million, in addition to approximately 2.2 million of other receivables which are expected to be collected during the quarter ending June 30, 2026. Based on our current operating and development plans and our ability to manage the timing of certain operating expenses, we believe our existing cash resources and expected receivables will be sufficient to Fund operations through June 30, 2027. With that, I will turn the call back to Carl.
Dr. Carl Spana (President and Chief Executive Officer)
Carl thank you Steve. This quarter Palatin continued to execute on its strategy of advancing our melanocortin 4 receptor agonist therapies for rare obesity disorders with a focus on improving tolerability, usability and long term outcomes in chronic treatment settings. The melanocortin 4 receptor pathway is a clinically and commercially validated target. We strongly believe the next phase of innovation will be defined not just by efficacy but by improvements in overall treatment profile, particularly tolerability and patient friendly delivery to support long term patient adherence. In this context our goal is is very straightforward. This has developed best in class mitochondrial 4 receptor agonists for the treatment of rare syndromic and genetic obesity disorders. We are uniquely positioned to achieve this with our extensive experience in the design of monoclonal 4 receptor selective agonists, along with our recent advancements in the understanding of receptor ligand interactions in rare obesity disorders such as hypothalamic obesity, Prader Willi syndrome and Barde Beidal syndrome. Patients face severe hyperphagia, rapid weight gain and significant metabolic complications. These are chronic conditions that require lifelong treatment and current therapeutic options often present challenges for long term use. As a result, improving tolerability and usability is critical to achieving meaningful sustained outcomes for patients. Updating our obesity pipeline our melanocortin 4 receptor agonist peptide program is designed to achieve sustained efficacy with a treatment profile optimized for high selectivity for the melanocortin 4 receptor and ONCE weekly delivery. Our ONCE weekly melanocortin 4 receptor selective peptide Agnus remains on track for an initial new drug application submission in the fourth quarter of calendar 2026 and represents our lead clinical asset in our oral small molecule program, we are advancing Next Generation Oral melanocortin 4 receptor selective agonist candidates based on data and learnings from earlier compounds and including PL7737, recent data from our research work in medicinal chemistry and our advancements in understanding detailed receptor ligand interactions in internal preclinical studies. Our candidates demonstrate significantly improved monocortin 4 receptor selectivity with minimal monocortin 1 receptor activity and increased potency at the monocortin 4 receptor compared to earlier compounds. We believe this improved selectivity and potency will result in lower dosing requirements and a meaningful reduction in the potential elimination of hyperpigmentation. I want to emphasize the importance of the last point. Hyperpigmentation is a known class effect associated with melanocortin 1 receptor activity and remains a limitation of current therapies. Our approach is specifically designed to minimize melanocortin 1 receptor off target interactions and the selectivity data we have supports this conclusion. Our goal is to develop best in class therapies with superior efficacy and long term patient compliance. In addition to advancing our obesity programs, we continue to leverage the broader potential of our melanocortin receptor platform through strategic partnerships and business development activities. Our partnership with Bergel Ingelheim for Retinal Diseases continues to provide non dilutive capital, milestone opportunities and potential long term royalty participation. During the second half of calendar 2025 we received upfront and milestone payments totaling 7.5 million euros or approximately $8.8 million. We also completed the sublicensing of PL9643 for dry eye disease to Altanis back labs in January of 2026, receiving 3.8 million in upfront consideration while retaining the potential for future payments and royalties. In addition, RPL8177 ulcerative colitis program remains positioned for potential partnering following positive phase two proof of concept results. These transactions reflect our strategy of leveraging the breadth of our melanocortin receptor platform to generate non dilutive …
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