PALATIN TECHNOLOGIES INC

PALATIN TECHNOLOGIES INC Annual Report - Plain English Investor Summary

Hey! Let’s break down Palatin’s year – no jargon, just the key stuff you need to know.

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1. What They Do & This Year’s Story

Palatin is a biotech company targeting melanocortin receptors (think: systems that control inflammation, metabolism, and sexual health). Their drugs aim to treat dry eye disease, obesity, and inflammatory conditions.
This year’s vibe: A mix of hope and chaos. They hit a major milestone with a dry eye treatment but face a cash crisis and stock market drama.

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2. Financial Snapshot: Growth or Trouble?

• Revenue: $0 in 2025 (vs. $4.49M in 2024) after selling off their only revenue-generating drug, Vyleesi.
• Losses: $29.7M net loss this year – identical to last year’s loss. Total lifetime losses now sit at $459M.
• Cash Crunch: Auditors warn there’s “serious doubt” they can survive without immediate funding. Recent deals and warrant conversions raised $13.7M ($2.3M from Boehringer + $11.4M from investors), but this only covers 46% of this year’s losses.
• Debt: Minimal – not a major concern.

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3. Wins vs. Challenges

✅ Wins:

• Dry Eye Success: Phase 3 trial completed for PL9643 – a big step toward FDA approval.
• Obesity Combo Potential: Early data shows their drug works well with popular weight-loss meds like Mounjaro.
• Big Pharma Partnership: Sold eye-disease rights to Boehringer for upfront cash + up to $307M in future payouts.

❌ Challenges:

• Revenue Gone: Sold Vyleesi in 2023, losing 100% of product income.
• Stock Market Crisis: NYSE American suspended trading in May 2025 due to low share price. Final delisting decision pending September 2025.
• Funding Anxiety: Even with recent cash injections, they’re burning money fast and need more ASAP.

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4. Survival Risks

• Cash Runway: They’re racing against the clock. Without new funding, operations could halt.
• Delisting Domino Effect: If kicked off NYSE American, shares could trade over-the-counter (OTC), making it harder to attract investors or raise funds.
• FDA Gambles: Even successful trials don’t guarantee approval.
• Obesity Competition: Battling giants like Eli Lilly and Novo Nordisk.

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5. The Road Ahead

• Dry Eye FDA Submission: Possible in 2025 if data holds.
• Obesity Updates: More trial results late 2025.
• Cash Hunt: Expect stock dilution (more shares = your ownership gets watered down) or risky loans. Delisting would make this MUCH harder.

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Bottom Line for Investors

High-risk, high-reward gamble. Palatin has promising science but is in financial ICU. The $13.7M raised buys time, but survival isn’t guaranteed. If delisted, shares could plummet further.

Consider this:

• Potential Upside: 10x gains if dry eye/obesity drugs get approved AND they secure funding.
• Likely Downside: Total loss if funding dries up or trials fail.

Only invest what you can afford to lose. This is a speculative play, not a stable stock.

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Always check their latest SEC filings for updates before investing.