Palatin Technologies (PTN) reported fiscal Q3 2022 results that seemed to raise investors’ hopes. PTN stock rose about 2.6% during extended trading on May 17, following the release of the March quarter results. Palatin develops drugs that target diseases with significant unmet medical needs. It also targets treatment areas with high commercial potential.
Earnings Numbers at a Glance
Net product sales jumped 144% year-over-year to about $0.22 million. A sharp increase in expenses, especially in research and development (R&D), pushed the loss per share to $0.03 from $0.02 loss per share for the same quarter the previous year.
Palatin ended the quarter with $37.7 million in cash. It also recently raised additional cash of $15 million through convertible equity offering. The company is considering a reverse stock split that it hopes would bolster its funding flexibility for its various product development programs.
Product Development Updates
Patient enrollment for the Phase 3 study of the PL9643 program is on track, and Palatin expects to have topline results in 2H 2022. The program targets dry eye disease. Palatin is also enrolling patients for the Phase 2 study of its PL8177 program, which targets ulcerative colitis conditions. It expects to have topline results from that study in Q1 2023.
Wall Street’s Take
On May 17, H.C. Wainwright analyst Joseph Pantginis reiterated a Buy rating with a price target of $5 on Palatin stock, which indicates 1,182% upside potential.
The rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating. That’s based on two Buys. The average Palatin price target of $3.50 implies 797.4% upside potential to current levels. Shares have declined about 28% year-to-date.
Blogger Opinions
TipRanks data shows that financial blogger opinions are 100% Bullish on PTN, compared to a sector average of 71%.
Key Takeaway for Investors
Palatin’s prospects look promising with the progress the company is making in the market with its Vyleesi product and lead programs PL9643 and PL8177. Another reason for investors to be hopeful is that Palatin has sufficient cash to last it through at least 2023.
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