Palatin Technologies, Inc.

For the third quarter of fiscal 2026, Palatin reported $3.9 million in collaboration and license revenue versus no revenue in the prior-year period, reflecting recognition of upfront consideration under the Altanispac agreement. Operating expenses were $5.5 million versus $4.8 million a year ago, and net loss was $1.4 million, or $0.37 per basic and diluted share, compared with a $4.8 million loss, or $9.13 per share, in the prior-year period. Net cash used in operations was $4.4 million versus $5.4 million last year. As of March 31, 2026, cash and cash equivalents were $10.2 million, plus about $2.2 million of receivables expected in the quarter ending June 30, 2026. Management said existing cash resources and expected receivables should fund operations through June 30, 2027. Forward-looking milestones include an initial NDA/IND filing for the once-weekly peptide in 4Q calendar 2026 and an IND for the oral small molecule in 1H calendar 2027.

Carl Spana framed the quarter around Palatin’s strategy to build best-in-class MC4R therapies for rare obesity disorders, emphasizing better tolerability, usability, and long-term adherence rather than just efficacy. He repeatedly highlighted selectivity against MC1R to reduce hyperpigmentation, and said the company is prioritizing compounds with cleaner profiles, once-weekly or oral dosing, and better patient compliance. His tone was confident and selective, stressing that the company would rather delay or drop assets like PL7737 than advance a candidate that is not differentiated.

Steve Wills focused on the quarter’s financial improvement and liquidity. He cited $3.9 million of collaboration and license revenue, $5.5 million of operating expenses, $4.4 million of cash used in operations, and a $1.4 million net loss, all improved versus the prior year. He also noted $10.2 million in cash and cash equivalents plus approximately $2.2 million of other receivables, and said the company believes those resources are sufficient to fund operations through June 30, 2027. No capital allocation changes or buyback/dividend actions were discussed.

Analysts focused on why PL7737 was not being advanced, whether the next-generation oral program can stay on track for IND readiness, and what remains before the once-weekly peptide filing. Management said PL7737 was dropped from forward development because it may not be best-in-class on selectivity and dosing, while newer backup compounds appear cleaner and more promising. On the oral program, management said candidate selection has not been finalized, some compounds are already in animal studies, and IND-enabling work is underway; for the weekly peptide, management said there are no issues, just a desire to select the best candidate before filing. They also said HO and Prader-Willi are equally important and would be pursued in parallel if resources allow.