Palatin Technologies (PTN) AI Stock Analysis

• Market Cap: $27.62M
• Dividend Yield: N/A
• Average Volume (3M): 2.99K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.31
• Revenue Growth: 271.10%
• EPS Growth: 87.20%
• Country: US
• Employees: 30
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 4.26
• Shares Outstanding: 1,702,675
• 10 Day Avg. Volume: 2,746
• 30 Day Avg. Volume: 2,993
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.18
• Enterprise Value/Market Cap: 15.92
• Enterprise Value/Revenue: 49.69
• Enterprise Value/Gross Profit: 50.93
• Enterprise Value/Ebitda: -97.44
• 1Y Price Target: $50.00
• Price Target Upside: 211.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $20.50 ▲(27.73% Upside)

The score is primarily constrained by weak financial durability—large ongoing cash burn and lack of sustained profitability—despite improving revenue and strong gross margins. Technicals add moderate support with price above longer-term averages, though near-term momentum signals are mixed. The earnings call was a positive offset due to partnership-driven revenue and stated runway, but dependence on milestones and funding remains a key risk; valuation is limited by a negative P/E and no dividend yield data.

Positive Factors

Strategic collaboration with Boehringer Ingelheim

A validated research and license deal with Boehringer Ingelheim supplies non-dilutive funding, external R&D resources and third-party validation. Structural milestone and royalty frameworks can accelerate de‑risking of programs and provide durable revenue windows as partners progress development.

High gross margins and improving revenue

Very high gross margins on collaboration and license revenue imply scalable economics: incremental revenue converts to profit dollars efficiently. Combined with a multi-year revenue uplift, this supports sustainable operating leverage as business development and milestone recognition continue.

Low leverage plus recent capital raise

Minimal debt reduces creditor risk and the recent ~$16.9M net proceeds materially extend runway versus pre-offering levels. This structural financing flexibility supports ongoing IND and clinical plans while preserving capacity to fund partnered development or absorb timing variability in milestone receipts.

Negative Factors

Large and persistent cash burn

Sustained multi‑million dollar negative operating cash flow greatly exceeds current revenue, implying recurring fundraising need. Over months this structural cash deficit pressures strategic flexibility, risks dilution or restrictive financing terms, and can delay or limit independent advancement of pipeline programs.

Dependence on partner milestones and warrant exercises

Revenue and runway hinge on third‑party milestone achievements and warrant activity rather than firm recurring sales. This externally driven cash flow model creates persistent timing and execution risk: partner decisions, trial outcomes, or deferred milestones can sharply alter available capital and program pacing.

Historical negative equity and balance-sheet volatility

Repeated accumulated losses that produced negative equity indicate prior funding reliance and weak retained earnings. Such balance‑sheet volatility tends to reduce financing optionality, increase dilution risk over time, and constrain long‑term investment capacity absent durable cash generation or sustained partner income.

Palatin Technologies Business Overview & Revenue Model

Company Description

Palatin 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 Money

Palatin Technologies generates revenue through the commercialization of its pharmaceutical products, primarily Vyleesi. Revenue streams include product sales, licensing agreements, royalties, and milestone payments from strategic partnerships and collaborations with other pharmaceutical companies. The company has established partnerships for the distribution and marketing of Vyleesi in various regions, which contributes to its earnings. Additionally, Palatin may receive government grants or funding for its research and development initiatives, although these are not primary revenue sources.

Palatin Technologies Financial Statement Overview

Summary

Revenue improved (TTM about $8.8M vs $4.5M FY2024) with very high gross margin (~98%), but the business remains structurally challenged by heavy losses (operating/net margins around -50%) and persistent, sizable cash burn (TTM operating cash flow and free cash flow around -$15.9M). Low reported debt helps, but prior periods with negative equity indicate funding dependence and balance-sheet volatility.

Income Statement

TTM (Trailing-Twelve-Months) revenue improved to about $8.8M versus $4.5M in FY2024, and gross margin remains very high (near 98%), indicating strong economics on recognized revenue. However, the company is still deeply unprofitable: TTM operating results are materially negative (operating and net margins around -50%), reflecting a cost structure that far exceeds current revenue scale. Historical profitability is also weak, with large annual losses and volatile revenue trends (including a year with effectively no reported revenue).

Balance Sheet

Leverage appears low in absolute terms (TTM total debt is modest at roughly $0.1M and debt-to-equity is ~0.33), which reduces near-term financial risk from creditors. That said, the equity base has been unstable—negative equity in several annual periods—suggesting accumulated losses and potential dependence on external financing. Asset levels have also fluctuated meaningfully across years, which can signal balance-sheet volatility for an early-stage biotech.

Cash Flow

Cash burn is significant and persistent: TTM operating cash flow and free cash flow are both around -$15.9M, and annual periods show even larger outflows (roughly -$21M to -$31M). TTM free cash flow also deteriorated sharply versus the prior period (large negative growth), underscoring rising cash needs. While cash flow roughly tracks net losses (free cash flow to net income near 1x), the core issue is the magnitude of ongoing cash consumption relative to the company’s current revenue base.

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	8.85M	―	0.00	4.49M	4.85M	1.47M
Gross Profit	8.63M	―	-258.92K	4.39M	4.44M	1.25M
EBITDA	-4.51M	―	-17.03M	-29.38M	-28.40M	-35.68M
Net Income	-4.81M	―	-17.31M	-29.74M	-24.04M	-36.20M
Balance Sheet
Total Assets	8.61M	―	3.27M	10.74M	17.94M	36.07M
Cash, Cash Equivalents and Short-Term Investments	1.27M	―	2.56M	9.53M	10.98M	29.94M
Total Debt	132.45K	―	163.78K	590.34K	1.05M	1.15M
Total Liabilities	8.22M	―	8.04M	10.85M	19.92M	19.80M
Stockholders Equity	396.40K	―	-4.78M	-111.50K	-1.98M	16.27M
Cash Flow
Free Cash Flow	-15.91M	―	-21.31M	-31.50M	-28.85M	-30.18M
Operating Cash Flow	-15.91M	―	-21.31M	-31.46M	-28.42M	-29.92M
Investing Cash Flow	3.13M	―	3.13M	12.45M	-3.43M	-261.37K
Financing Cash Flow	11.67M	―	11.21M	20.55M	9.90M	18.36K

Palatin Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTN, the sentiment is Negative. The current price of 16.05 is below the 20-day moving average (MA) of 16.55, below the 50-day MA of 18.14, and above the 200-day MA of 10.57, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 47.00 is Neutral, neither overbought nor oversold. The STOCH value of 39.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PTN.

Palatin Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBIO	55 Neutral	$51.27M	-1.60	-54.50%	―	185.71%	79.03%
PTN	54 Neutral	$27.62M	-1.29	―	―	271.10%	87.20%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ADXN	51 Neutral	$10.31M	-0.92	-71.27%	―	-72.15%	-223.62%
BOLT	48 Neutral	$13.61M	-0.30	-81.97%	―	-46.88%	34.83%
PHIO	46 Neutral	$11.09M	-0.46	-107.58%	―	―	83.95%
BRTX	44 Neutral	$9.76M	-0.75	-207.73%	―	1.70%	-111.67%