U.S. stock futures slip lower; Cook’s firing increases Fed independence worries
CRANBURY, N.J. - Palatin Technologies (NYSE:PTN), Inc. (NYSE American: PTN), a developer of melanocortin receptor system-based medicines, has been notified by NYSE American LLC of a non-compliance issue with the Exchange's listing standards. The notice, received today, indicates that Palatin does not meet the stockholders' equity requirement of $6 million, as outlined in Section 1003(a)(iii) of the NYSE American Company Guide, due to reported losses in its last five fiscal years.
The company, which had previously acknowledged non-compliance under different sections of the listing standards, has submitted a compliance plan to the Exchange. The plan has been accepted, providing Palatin until April 10, 2025, to meet the continued listing standards, including the recent Section 1003(a)(iii) criteria. During this period, Palatin's stock will remain listed on the Exchange and will undergo periodic reviews to ensure adherence to the plan.
This development does not impact the current listing or trading of Palatin's common stock on the Exchange, nor does it affect the company's business operations or its reporting obligations to the U.S. Securities and Exchange Commission.
Palatin is actively exploring various funding options and is committed to executing a transaction or transactions that will enable it to comply with the Exchange's requirements by the April 2025 deadline.
The company specializes in creating targeted, receptor-specific product candidates for diseases with significant unmet medical needs and commercial potential. Palatin's strategy includes developing these products and then establishing marketing collaborations with industry leaders.
This news is based on a press release statement from Palatin Technologies. The company's forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical or anticipated results. Palatin does not assume the responsibility to update these forward-looking statements following the date of the press release.
In other recent news, Palatin Technologies, Inc. reported on its fiscal year-end 2024 financial results and pipeline advancements. The company made significant strides, including the sale of its product Vyleesi to Cosette Pharmaceuticals for up to $171 million, with an upfront payment of $12 million. Despite no product sales reported for the fourth quarter, the company's reduced operating expenses and successful completion of clinical trials have set the stage for future developments.
Palatin also highlighted progress in its drug development programs, particularly in ocular health and obesity treatment. The company completed a successful Phase III trial for PL9643 for dry eye disease, with a New Drug Application (NDA) expected in early 2026. Furthermore, a Phase II study for obesity treatment combining bremelanotide with tirzepatide has been initiated, with results expected in early 2025.
In addition, the company is developing next-generation MC4 receptor peptide agonists and a co-formulation for erectile dysfunction, with studies starting in 2025. Palatin is actively seeking collaborations to support its key programs in obesity and dry eye disease. These recent developments demonstrate Palatin's commitment to advancing its drug pipeline and addressing unmet medical needs.
InvestingPro Insights
Palatin Technologies' recent notification of non-compliance with NYSE American's listing standards aligns with several key financial metrics and trends identified by InvestingPro. The company's market capitalization stands at a modest $17.59 million, reflecting its current challenges.
InvestingPro data reveals that Palatin's revenue for the last twelve months as of Q4 2024 was $4.49 million, with a concerning revenue growth decline of -7.49% over the same period. More alarmingly, the quarterly revenue growth for Q4 2024 showed a steep drop of -80.14%, indicating significant financial headwinds.
These figures are consistent with two critical InvestingPro Tips: "Quickly burning through cash" and "Net income is expected to drop this year." These insights underscore the company's struggle to maintain financial stability, which is at the core of its non-compliance issue with the NYSE American's listing standards.
Additionally, the InvestingPro Tip noting that "Analysts do not anticipate the company will be profitable this year" further emphasizes the challenges Palatin faces in meeting the Exchange's stockholders' equity requirement. This aligns with the company's reported losses over the past five fiscal years, as mentioned in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips that could provide valuable context to Palatin's current situation and future prospects. These insights could be particularly useful as the company works towards meeting the Exchange's requirements by April 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.