Palatin Technologies Reports $4.8 Million Net Loss and Strategic Shift Following Vyleesi Sale

Palatin Technologies, Inc. reported significant financial challenges in its latest quarterly filing, revealing a net loss of $4.8 million for the three months ending March 31, 2025, compared to a loss of $8.4 million during the same period in 2024. For the nine months ending March 31, 2025, the company recorded a net loss of $15.1 million, a decrease from $21.5 million in the prior year. The company did not generate any product revenue during the latest quarter, a stark contrast to the $4.1 million reported in the same quarter last year, primarily due to the sale of its product Vyleesi to Cosette Pharmaceuticals in December 2023.

The company's total assets decreased to $3.7 million as of March 31, 2025, down from $10.7 million at the end of the previous fiscal year. This decline was largely attributed to a reduction in cash and cash equivalents, which fell to $2.5 million from $9.5 million. Current liabilities increased to $10.0 million, up from $9.7 million, indicating a growing financial strain. The accumulated deficit as of March 31, 2025, stood at $456.8 million, reflecting the ongoing challenges in achieving profitability.

Strategically, Palatin has shifted its focus following the sale of Vyleesi, which included an upfront payment of $9.5 million and potential milestone payments totaling up to $159 million based on sales performance. The company is now concentrating on developing new product candidates, including a combination therapy of bremelanotide with tirzepatide for obesity, which is currently in Phase 2 trials. Additionally, Palatin is advancing its ophthalmic peptide solution for dry eye disease and an oral peptide formulation for ulcerative colitis, both of which are in various stages of clinical development.

Operationally, Palatin's research and development expenses decreased significantly, totaling $12.9 million for the nine months ending March 31, 2025, compared to $17.7 million in the prior year. This reduction is attributed to decreased spending on its melanocortin receptor programs. The company also reported a gain of $2.5 million from the sale of Vyleesi due to the settlement of purchase commitments, contrasting with a loss recorded in the previous year. The company’s workforce remains focused on advancing its clinical programs, although specific employee headcount figures were not disclosed.

Looking ahead, Palatin Technologies faces substantial uncertainty regarding its ability to continue as a going concern, as indicated by management's assessment. The company is actively seeking additional financing to support its operations and product development efforts. With cash reserves expected to last into the second half of 2025, the company is exploring various strategies, including equity financing and potential partnerships, to secure the necessary capital for its ongoing projects.