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CRANBURY, N.J. - Palatin Technologies, Inc. (NYSE American:PTN), a biopharmaceutical company currently trading at $0.43 per share, has been notified by NYSE American LLC of the intention to delist the company's common stock due to non-compliance with stockholders' equity requirements. According to InvestingPro data, the company's financial health score is rated as "WEAK," with concerning metrics across multiple dimensions. The proceedings to delist, announced today, follow the company's failure to meet compliance standards by the end of an 18-month period, which concluded today. The company's stock has declined significantly, with InvestingPro data showing a 76% drop over the past year and a market capitalization of just $11.14 million. InvestingPro analysis suggests the stock is currently trading below its Fair Value.
The NYSE American Company Guide's Section 1009(a) stipulates suitability for listing, and Palatin Technologies has not demonstrated adherence to Sections 1003(a)(i), (ii), and (iii) related to these equity requirements. Despite this setback, the company has the right to appeal the delisting decision before the Listings Qualifications Panel by April 25, 2025, and they have expressed their intention to do so.
Trading of Palatin Technologies' common stock on the NYSE American is expected to continue during the appeal process, although the final outcome remains uncertain. The company is actively working to regain compliance with the NYSE American's listing standards. InvestingPro Tips indicate the company is quickly burning through cash, with a concerning current ratio of 0.38, suggesting short-term obligations exceed liquid assets. Discover 12 more exclusive insights about PTN with an InvestingPro subscription, including detailed financial health analysis and expert recommendations.
Palatin Technologies specializes in developing medicines that modulate the melanocortin receptor system. The news of potential delisting has raised concerns among investors and stakeholders, as continued listing on a major exchange often provides companies with greater visibility and liquidity for their stocks. Financial data reveals the company's revenue has declined by 95% in the last twelve months, with negative EBITDA of -$30.08 million.
The company cautions that statements regarding its efforts to regain compliance and expectations of successful appeal are forward-looking and involve risks and uncertainties. These statements are not guarantees of future performance, and actual results could differ materially.
This report is based on a press release statement from Palatin Technologies, Inc. The company's future in regards to its listing status on the NYSE American will be determined following the appeal process, and no assurances can be made about its ability to regain compliance before any hearing occurs.
In other recent news, Palatin Technologies reported its Q2 FY2025 earnings, revealing an earnings per share (EPS) of -0.12, which significantly outperformed the forecasted -0.51. Despite no product sales this quarter, the company managed to reduce its net cash used in operations to $4.8 million, down from $10.5 million the previous year. Palatin is also advancing its obesity treatment programs, with its drug PL7737 recently receiving orphan drug designation from the FDA for LEPR deficiency obesity. This designation provides incentives such as tax credits and market exclusivity, though it does not equate to drug approval. Additionally, Palatin announced positive results from a Phase 2 obesity study, where a combination of bremelanotide and tirzepatide showed significant weight loss in patients. In the realm of ulcerative colitis treatment, Palatin's PL8177 showed promise, achieving clinical remission in 33% of patients in a Phase 2 trial. Moreover, the company presented promising results from a study on its melanocortin agonist treatment for Type 2 diabetic nephropathy, with 71% of participants achieving reduced kidney damage. Palatin is actively engaged in discussions with pharmaceutical companies for potential licensing and strategic partnerships.
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