Earnings call transcript Q3 2023

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Operator

Greetings. Welcome to Palatin’s Third Quarter Fiscal Year 2023 Operating Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

Before we begin our remarks, I would like to remind you that 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 due to the variety of risks and uncertainties discussed in the company’s most recent filings with the Securities and Exchange Commission. and prospects. in risks statements these such Palatin’s by consider uncertainties evaluating carefully forward-looking Please

would to Officer I Spana, go Now like President Dr. over ahead. and Carl to Chief Executive of Please turn Palatin. the call

Carl Spana

Officer. Vice you. and call third fiscal will Palatin to Wills, today I Spana, and is XXXX to With Chief Palatin. Executive Carl quarter President Dr. Steve and Good of will the morning President, I’m operating me turn Thank Officer call welcome and CEO Steve? Steve, the Operating give Chief and Financial call. financial on the now Palatin’s update. the over he

Steve Wills

everyone. Thank Hello, you, Carl.

Regarding is marketplace with product rights women’s The product or highlights, our HSDD. to the start women to is value of committed company. in desire Vyleesi FDA-approved for Vyleesi the the demonstrate disorder, financial goal commercial licensing U.S. a commercial care program with with I’ll an Vyleesi. pre-menopausal hypoactive of objective health sexual

third quarter quarter of XX% For revenue million increase over over gross increase and Net prior quarter last comparable were the comparable of year. XXX% prior year. increased an ended an sales last $X.X quarter XXXX, the the product over million, over and the $X.X March increased of XX, XXX% the XX% product quarter

year. Total last over over prior the increased the prescriptions XX% dispensed comparable quarter and quarter XXX% increased

net quarters revenue X quarter achieved trends positive consecutive last comparable prior double-digit year. reimbursement and of dispensed per impactful prescription and growth. commercial continued and the have versus We results rates, and Refill insurance quarter with

through money Vyleesi. Patients of XX, titled expenses. XXXX. Yes, a issued revenue product quarterly Also, term not operating we particularly April with with Use that losing quarterly We were are Vyleesi’s are pleased Hypertension a in Vyleesi’s net that means Controlled Bremelanotide on we any patent exceeds

Authority. New New State other, Business from Development receive by Jersey Jersey’s program sponsored the in did of $X.X January Transfer Regarding the Economic Palatin Certificate Technology million XXXX Tax

the March actual to the quarter for ended over financial third XXXX. Moving XX, results operating

net revenue Regarding I and consists revenue revenue, accruals and total of covered Vyleesi, and numbers revenue, prior. revenue. product license the fee Vyleesi sales of allowances of gross contract

Regarding $X.X expenses of comparable mainly million million The were marketing last the increase $X was on for quarter operating operating our higher Vyleesi. year. the operating expenses, compared in efforts spending total expenses to result of

compared State flows, Regarding stands the cash cash March used used operations due mainly for cash cash the New Jersey million of the Palatin’s operations The net and in the operations capital quarter from to working year. in of in is million net in same NOL, period $X.X used was net XXXX. to operating proceeds for of for XX, losses; last ended $X.X company’s decrease receipt net changes

compared expenses $X.X Regarding common diluted the product $X share basic The share over of mainly net of net of by loss, or last year. net approximately operating increase an to was was per common $X.XX a $X.X $X.XX year quarter loss last of for and comparable an basic per comparable million net or in Palatin’s Vyleesi offset million loss to the net and diluted increase in million, decrease in $XXX,XXX. loss revenue due quarter

of receivable with million cash XX, of equivalents cash as accounts December XXXX, other approximately and and $XX.X and of as cash receivable. $X.X and million XX, receivables plus cash $XX.X cash to of March of approximately compared $XX.X Palatin’s equivalents were as accounts million was million, with XXXX. of Regarding XXXX, $X.X This June $X.X million of position, million XX, accounts

be calendar Based anticipated to sufficient current operating on believe and we equivalents receivables through XXXX. currently operating expenses cash that our plan, and cash year will fund existing

I’ll to Carl. turn call the Now back over

Carl Spana

and with continue therapeutics. of for novel advance academic Palatin, we At thought system unparalleled and safe leaders, diseases identify autoimmune melanocortin laboratory, collaboration to target our opportunities the with understanding research and for focused Through the highly pipeline our innovative effective in melanocortin treat to a as inflammatory of in safety. drugs establishing system to Steve. on a develop to we were you, inspective Thank medicines

better efforts and research are Our becoming activities. development our support us helping for to key clinical design trials business a

programs We melanocortin have based our three active agonists clinical developed from on research.

In new resources to the clinical programs ready, addition, two begin we have pending required start ocular to studies. activities

a MELODY-X, studies Phase We PLXXXX, Phase X selective calendar XXXX. kidney agonist patients will Phase disease. are diabetic anticipate data ulcerative have in evaluating following clinical oral study eye dry the in enrolling patients a study a all melanocortin-X X breakout, patients; trials: in actively receptor in X We readouts with a study colitis clinical and disease; three in

highlights the continue. for we impressive quarters Moving key to on will as five Steve quarter, increases the in some double-digit growth, Vyleesi show all and of anticipate growth continues third of to this metrics, mentioned,

treat I make as And patients We of to for are a continue to the system diseases. significant as establishing said, clinical target inflammatory progress therapeutics melanocortin an in enrolling three variety innovative studies. in we

programs continue ocular quarter. advances impressive some Our to this make

product our dry disease. by differentiated the PLXXXX We melanocortin-based current will make leading with treatments and from are for broad eye dry PLXXXX, highly very emerging profile treatment is ocular excellent efficacy the believe PLXXX for we disease. therapeutic that for excited tolerability eye

for ocular and the primary MELODY-X disease methods separation confidently secondary X PLXXXX population from the Phase of statistical sample Meeting Phase of X endpoints, trial signs double-blind the symptoms safety data size for was of Annual with eye dry Vision of broad analysis symptom ocular and segment in of an analysis at across demonstrated with analysis Association the trial. multiple ordering of leading us endpoints, This and the and to the and profile excellent efficacy presented allowing PLXXXX Research sign tolerability and the We the adverse no MELODY-X events. set important, Ophthalmology.

key a for data leader X hosted where presented. investors very exciting Phase for also event was the We opinion MELODY-X trial

be website. on can the link for replay our missed this found you’ve If event, a

In the positive on pressure with for hours. and on similar trials. competitive latanoprost up effect showed program intraocular We melanocortin-based the now to with on timolol with PLXXXX studies, XX also or preclinical greater pressure at ready ARVO the data lowering dose topical presented a PLXXXX single is rapid activities a glaucoma. with effects treatment on to magnitude pre-IND controls way than into This important clinical to advance to lasting intraocular

to also Our multiple non-ocular X significant presentations advances melanocortin and publications scientific patients Phase with and programs well made peer-reviewed in as enroll as trials. meetings journals at continuing

into system melanocortin advance we our increased potential remain programs. to the activities. or our partnerships more clinical programs and our are programs, business enter in we that with innovative expertise has Our for optimistic our Discussions development supporting and partners one will

for call. thank Palatin I’d you the fiscal like quarter to to third listening XXXX conference

science find can on You information our www.palatin.com. additional clinical our website, on programs and

additional Vyleesi at find also You on the website. can vyleesi.com information

I you, and would to now and like we open will to Steve the thank call questions.

Operator

today from Instructions] Joe H.C. first coming for at [Operator Your is Pantginis Wainwright. question

Joe Pantginis

taking afternoon. Good questions. guys. for Thanks Hi, the

So first, with I want Vyleesi. to start

see So here. continued traction nice to the early

usually just So inventory ongoing plans your distribution curious, what this is at to your improve in And point? efforts to keeping, net percent improve are percentage what gross current you’re the centers? your to that the – or

Steve Wills

specialty set there. Thanks pharmacy Steve. actually The have our we one Joe, question the up, Hey, called is distribution it’s NPR. only for way

believe, XPL, the you our then NPR dispenses the making the which is So report a sells match We good and the NPR month, to much quarter, we will, sure how sell up of actually XPL sales, we very if for to what pharmacy. do the pretty the job I with actually a, it.

that’s So ‘XX, and the X,XXX had much pretty XPL. first we of had for under we the a quarter, for quarter, little that we to March the XX, dispensed had prescriptions what sold

or point distribution that’s To nothing been difference a just X up, we already sold. that regard. have chain sum it there’s So in in virtually the not

Joe Pantginis

ahead, – sorry. That’s yes, go

Steve Wills

on of numbers we we’re doing. question as strategy, been to are else is put So looking will. what salespeople, Well, clear, – of very the ground, significant your you part our if we’re not we’ve feet b

land is albeit treatment do, of Our algorithms, a for for We searching informed a have right that they’re option you on very few and but they make Vyleesi. they and folk, sure little to to We bit measured media condition spend do patients a sales we of traveling. mainly inside trying have do the remote, – campaign. this a when do and are if digital lot – social to time a will, target

So we’re our social digital get target we quarters level Since we both upon can to, do they able comfortable It’s metric be to successful somebody what have show and growth. standpoint, of with can think on our net media. continue review, numbers, model that going sales – five consecutive from dispensed. That’s the doing, value, prescriptions based is the the the and to that. at we also very been show can extrapolate double-digit that we’re

metric. top are demand, but our not that’s We increasing

We got patient make by possible. two-thirds to those patient quarters insurance to have actually as insurance. successful dispenses, covered was of metric Our are making sure now we coverage, zero. all the of significant over Three the it pays our dispensers as

think we coverage very insurance we some So that regard. in robust have

And a at So sees number end the we licensing to collaboration doing now where we that our we’re net increasing position losing is making not continue path, we’re demand gross which And bit, are Joe, – is to to sure going into net the good. the when some time that up sell in the the the we’ve Vyleesi. point someone looking forward asset and any had or money yield, on a future. value

Joe Pantginis

appreciate I that Great. No. color.

just question, event – going KOL over guys hop I’m second So that. you you what, just recently to on a because dry eye held my

So ulcerative XXXX question colitis. a I’m for ask going to on quick

going announced curious, what kind we are later just given? this to data of first when the metrics potentially be you set, So guys year,

Carl Spana

So Joe, Carl. is this

proof-of-concept done a really predominantly study, and it’s by is this So imaging.

a reduction Vyleesei. and to So be biopsy going they’re damage at are and and colonoscopy inflammation to looking – we of it’s

So simple score. it’s MAYO a

other is evidence are in really the But colon. and reductions inflammation occurring – looking in a for it’s damage that’s that common of predominantly reduction these studies. really of tools get direct the You these things the additional this also and metrics used study in like that’s

Joe Pantginis

guys. Thanks, Great.

Operator

from Your Michael next coming is Higgins question for at Ladenburg today Thalmann.

Michael Higgins

guys questions. spring. pipeline Thanks, again, the taking this the all on Congrats, progress for

in thanks KOL here. quite have two much We You’ve putting for questions. certainly Very do kept press together the release busy. events. Not helpful. us And new the

follow the will the of first we’re Joe’s seeing The what project in here lines on along of returns. thinking allowance

dates We’re as be the despite may Certainly, include as sales since percent well seems overstocking, as It high seeing of sticky returns. expiration potential there gross relatively course. to for accounts financial it it time of launch. a

So, surprised sales gross so the high for remains to long. see on so rate

as understanding that it then, and Just down is reported might come when more net trying to importantly, an get why that Thanks. will accelerate of sales.

Carl Spana

Michael, am stickiness the for increasing are regarding the the am or It is not the the gross hence, quarter, every I – net part, increasing following most we question gross sales growth. actually your quarter, are sales. sure The Yes. I sales. double-digit every

have don’t from we We because a return much standpoint. have allowances very little for returns

that could you but – better the reimbursement I if insurance as first net because bit have attributable first the question So, where a are was are quarter. The of than we were appreciate. deductibles as The that’s difference net yield gross the half quarter, was I But we that every quarter. and would second we up The sales we back the normally again, first our for quarter. sales for more, getting clarify the the primarily lower prior. first a and have in first to not did spreads quarter, other the And XXX% look the at quarter, to of high, year. hit

Michael Higgins

past just back. subjective, investors directly launches, returns returns it insights wears something not a something the say, potentially comes into oversubscribe, – months. highly then Usually, and that product measure Sure. the very it’s a anyone, first, product may after what to is it accounting I or that’s XX an may guess now. also that’s coming and we the some A return, but and in But are also all used been it dating then from what’s back. accountants It’s that be it’s provides The off regulated. pharmacy and goes that for

So, seeing it still up bit there surprising. is a

have modeled We it. not

But conservative eventually, in drops. that. We are that pretty

are to returns. XX% about sales gross far, so we along is of Here product

below it’s half. this We the stage are of Typically, at launch.

and So, accelerator. that a hits It’s when point, should that great net sales. some does, at turn, that

just when gauge am I Thanks. So, trying that might to come.

Carl Spana

you I it accurate. when are not that data XXX% accurate, can might not going not help come. referencing not It’s to is you come. The

And the on just we and pretty in NPR since which distribution pharmacy. We that [ph]. they in be are that only buy are one going able one that we channel. XPL, industrial to is we we a standpoint, to pharmacy, do the to, from XPL same to sell have based what they week are the for much the and have both zero sales park, going need the have The they housed over

have information channel patient that, that, problem expect, not with stress low XXX% stating I any have There that coming anticipate very, is actually We couldn’t we allowances no product. do to very the back. is significant inaccurate. nothing do the I returns So, of greater. in any and

Michael Higgins

I in Yes. course, I seeing feedback of ophthalmic conditions. one the the this melanocortin morning, am you, am I we XX-Q just referencing question appreciate that. so a lot seeing the in for are there. But advancing, pipeline Carl,

diabetic You expanded have approved nephropathy. sexual in ulcerative into obviously, dysfunction. colitis, Vyleesi, female is

success are in wondering melanocortin just potential agents. the the and We rationale Thanks. with about some the given BCD there

Carl Spana

dear my have we Clearly, before. Mike, heart. near had conversations is and, very this the certainly, obesity, Sure. obesity, a to and about MCRX, to company

light in in certainly that multi marketplace of a We of – well, we our at work looking lot actively billion the potential market the And expanse there, class inhibitor we $XXX-plus in the – certainly have and of are options resource the done GLP-X space. there. are

comes based belief and And treatment more with it’s would very of recent research And and Our suggest role as a are prescribers in obesity. in do very quarters for that the – plan discussions agonist important in opportunity. And you on a we melanocortin we that. about that. is are phenomenal work our GLP-X, key will upcoming we is think it what there finalization. hear interested But the very evaluating that I that we of into

Michael Higgins

Awesome. it. Thanks Appreciate guys.

Operator

of over the management now I session, for remarks. have reached to and will call closing [Operator Instructions] the We turn end the question-and-answer

Carl Spana

I think a like to quick Steve statement. would make

Steve Wills

Yes.

Note and Just regarding allowance in the we break out is what notes, Michael question X, on actually referencing XX-Q, specifically gross Higgins’ accruals, he – note the on the to is between net our in sales sales. first

it Net March million. gross us million. from months to for actually, $X.X costs sales sales The XXXX, So what were gross to difference three $X.X XX, were the go ended is net.

percentage the to $XXX, standard we the if to PBMs, XXX% come March increases, various expenses gross to that XX% have back. increased. you you all you have of We of it’s is you expenses various quarter fees XX, pay all if of allowances coverage very XXXX, first but gross the if go other our have sales actually actually, as to look the none, the to will, for the that very provision related reimbursement, quarter, insurance March from a The customary now ‘XX, net. fees, very at There approximately And in to of when sales all of for and significant the no the little, XX% net positive. lack a first to quarter was down and pharmacies, and for the ‘XX, charges

that I up, you. clear you mind. if So, want didn’t Carl? to Thank just

Carl Spana

Thanks Steve.

programs. are couldn’t progress the to thank call. would what for third the about participating was I excited XXXX quarter all in quarter we and So, Steve I everyone fiscal with doing. in tremendous more be a It

really of the well what now, pretty about future to is and bring. the we be to think going right the are we quite and seem rest enthusiastic I it year hitting

that all you – Steve look a with XXXX. on like like to and great day, forward and participating. I We updating said, progress on to rest So, you our of continue and you being for thank would we the have

you. thank So,

Operator

your Thank lines participation. conference today’s your concludes may and for this disconnect time. at you This you

Palatin (PTN) 16 May 232023 Q3 Earnings call transcript