Palatin Technologies (PTN) AI Stock Analysis

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Palatin Technologies

(NYSE MKT:PTN)

Rating:37Underperform

Price Target:―

Palatin Technologies is facing significant financial and operational challenges, with persistent losses, negative equity, and weak cash flow. The technical analysis indicates a bearish outlook, and valuation metrics reflect the company’s struggles. Despite some positive elements from the earnings call, such as reduced net loss and potential partnerships, the lack of product sales and decreasing cash reserves are concerning. Immediate improvements are needed to enhance financial stability and shareholder value.

Positive Factors

Clinical Trials

The completion of the Phase 2 BMT-801 clinical trial is a significant milestone for Palatin as it focuses on the obesity space, which is seen as a key driver of the company's long-term success.

Strategic Focus

Palatin's strategic focus has shifted primarily to its obesity program, which management views as the primary driver of long-term success.

Negative Factors

Clinical Trial Risks

Factors that could impede reaching the price target include failed or inconclusive clinical trials or the inability to secure adequate funding for drug development.

Financial Needs

The company is in talks with sources to address its future operating cash needs.

Palatin Technologies (PTN) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.13M

Dividend YieldN/A

Average Volume (3M)N/A

Price to Earnings (P/E)―

Beta (1Y)0.23

Revenue Growth-95.07%

EPS Growth40.41%

CountryUS

Employees30

SectorHealthcare

Sector Strength39

IndustryBiotechnology

Share Statistics

EPS (TTM)-0.12

Shares Outstanding28,148,846

10 Day Avg. VolumeN/A

30 Day Avg. VolumeN/A

Financial Highlights & Ratios

PEG Ratio>-0.01

Price to Book (P/B)-0.30

Price to Sales (P/S)0.00

P/FCF Ratio-0.10

Enterprise Value/Market Cap-0.07

Enterprise Value/Revenue-0.03

Enterprise Value/Gross Profit-2.30

Enterprise Value/Ebitda<0.01

Forecast

1Y Price Target

$7.00

Price Target Upside6900.00% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Palatin Technologies Business Overview & Revenue Model

Company DescriptionPalatin Technologies, Inc., a biopharmaceutical company, develops targeted receptor-specific therapeutics for the treatment of various diseases in the United States. The company's lead product is Vyleesi, a melanocortin receptor (MCr) agonist for the treatment of premenopausal women with hypoactive sexual desire disorder. It is also developing oral PL8177, a selective MC1r agonist peptide that has completed Phase I clinical trial for the treatment of inflammatory bowel diseases. In addition, the company engages in the development of PL9643, a peptide melanocortin agonist active at multiple MCrs, including MC1r and MC5r for anti-inflammatory ocular indications, such as dry eye disease; and melanocortin peptides for diabetic retinopathy. Further, it is developing PL3994, a natriuretic peptide receptor (NPR)-A agonist and synthetic mimetic of the endogenous neuropeptide hormone atrial natriuretic peptide for cardiovascular indications; and PL5028, an NPR-A and NPR-binder to treat cardiovascular and fibrotic diseases, including reducing cardiac hypertrophy and fibrosis. The company was incorporated in 1986 and is based in Cranbury, New Jersey.

How the Company Makes MoneyPalatin Technologies generates revenue through the commercialization of its FDA-approved product, Vyleesi, which is licensed to AMAG Pharmaceuticals in North America. The company earns income from product sales, royalties, and milestone payments associated with this partnership. Additionally, Palatin seeks to expand its revenue streams by developing and potentially licensing other therapeutic peptide products in its pipeline. The company's financial health is also supported by strategic collaborations and partnerships with other pharmaceutical companies, providing additional funding and resources for its research and development efforts.

Palatin Technologies Earnings Call Summary

Earnings Call Date:Feb 13, 2025

(Q2-2025)

% Change Since: -89.90%|

Next Earnings Date:May 20, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed view with significant achievements in reducing net loss and promising clinical trial results. However, challenges remain with the absence of product sales and a decrease in cash position. The company is actively pursuing strategic partnerships to enhance its future prospects.

Q2-2025 Updates

Positive Updates

Significant Decrease in Net Loss

Palatin Technologies, Inc.'s net loss for the quarter ended December 31, 2024, was $2.4 million compared to a net loss of $7.8 million for the same period in 2023.

Decrease in Net Cash Used in Operations

Net cash used in operations for the quarter ended December 31, 2024, was $4.8 million compared to $10.5 million for the same period in 2023.

Promising Phase 2 Breakout Study Results

71% of patients achieved a greater than 30% reduction in urinary protein to creatinine ratio and improved or stabilized estimated pulmonary filtration rate in a study for diabetic kidney disease.

Strategic Business Development

Significant increase in business development discussions for outlicensing and potential partnerships for the OPL 8177 and ocular melanocortin programs.

Negative Updates

No Recorded Product Sales

Palatin Technologies, Inc. did not record any product sales to pharmacy distributors for the second quarter ended December 31, 2024.

Decrease in Cash Position

Cash and cash equivalents were $3.4 million as of December 31, 2024, compared to $9.5 million as of June 30, 2024.

Fair Value Adjustment Loss

Recorded a fair value adjustment loss of $8.1 million for the quarter ended December 31, 2023.

Company Guidance

During the second quarter fiscal year 2025 call, Palatin Technologies, Inc. provided guidance on several key metrics. They did not report any product sales for the quarter ended December 31, 2024, following the sale of worldwide rights for female sexual dysfunction to CoSette Pharmaceuticals in December 2023. Operating expenses were $2.6 million, net of a $2.5 million gain from the sale by lessee, compared to $0.9 million net of a $7.8 million gain for the same quarter in 2023. Net cash used in operations decreased to $4.8 million from $10.5 million in the previous year, while the net loss was reduced to $2.4 million from $7.8 million. As of December 31, 2024, cash and cash equivalents were $3.4 million, excluding $4.3 million raised in a February 2025 equity offering. Additionally, Palatin is actively seeking multiple funding sources for future operating cash requirements.

Palatin Technologies Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	350.00K	4.49M	4.85M	1.47M	-188.60K	117.99K
Gross Profit	178.21K	4.39M	4.44M	1.25M	-336.44K	-13.84M
EBITDA	-26.53M	-29.03M	-32.46M	-35.68M	-33.38M	-22.04M
Net Income	-26.95M	-29.74M	-27.54M	-35.81M	-33.57M	-22.38M
Balance Sheet
Total Assets	4.31M	10.74M	17.94M	36.07M	67.30M	85.05M
Cash, Cash Equivalents and Short-Term Investments	3.42M	9.53M	10.98M	29.94M	60.10M	82.85M
Total Debt	357.74K	590.34K	1.05M	1.15M	1.25M	1.27M
Total Liabilities	10.69M	10.85M	17.81M	19.80M	17.65M	4.88M
Stockholders Equity	-6.38M	-111.50K	134.07K	16.27M	49.65M	80.17M
Cash Flow
Free Cash Flow	-26.95M	-31.50M	-28.85M	-30.18M	-22.65M	41.26M
Operating Cash Flow	-26.94M	-31.46M	-28.42M	-29.92M	-22.65M	41.33M
Investing Cash Flow	2.50M	12.45M	-3.43M	-261.37K	-5.72K	-62.88K
Financing Cash Flow	18.38M	20.55M	9.90M	18.36K	-93.64K	-1.92M

Palatin Technologies Risk Analysis

Palatin Technologies disclosed 48 risk factors in its most recent earnings report. Palatin Technologies reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Palatin Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	¥342.56B	10.47	-2.86%	2.57%	11.81%	-7.17%
LPCN	48 Neutral	$16.59M	650.59	-24.89%	―	10081.34%	―
BOLT	46 Neutral	$11.33M	―	-83.92%	―	-67.87%	0.40%
CLDI	37 Underperform	$7.81M	―	354.78%	―	―	64.19%
PTN	37 Underperform	$6.13M	―	422.38%	―	-95.07%	40.41%
EDSA	35 Underperform	$14.61M	―	-58.78%	―	―	-126.54%
GOVX	34 Underperform	$12.08M	―	-616.17%	―	―	71.39%

* Healthcare Sector Average

Performance Comparison

PTN

Palatin Technologies

0.13

-1.65

-92.70%

LPCN

Lipocine

3.10

-4.34

-58.33%

GOVX

GeoVax Labs

0.48

-2.39

-83.28%

EDSA

Edesa Biotech

2.08

-2.17

-51.06%

BOLT

Bolt Biotherapeutics

5.92

-8.78

-59.73%

CLDI

Calidi Biotherapeutics

0.24

-1.38

-85.19%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―