Palatin Technologies, Inc.

Hello, ladies and gentlemen. Welcome to Palatin's first quarter fiscal year 2021 operating results conference call. As a reminder, this conference is being recorded. Before we begin our remarks, I'd like to remind you that the statements made by Palatin are not historical facts and may be forward-looking statements. These statements are based on assumptions that may or may not prove to be accurate and that the actual results may differ materially from those anticipated due to the variety of risks and uncertainties discussed in the company's most recent feelings with the Securities and Exchange Commission. Please consider such risks and uncertainties carefully in evaluating these forward-looking statements and Paladin's prospects. Now I'd like to turn today's call over to our host, Dr. Carl Spana, President and Chief Executive Officer of Paladin.

Thank you. Good morning and welcome to the Paladin Technologies first quarter 2022 call. I'm Dr. Carl Spana, CEO and President of Palatin. With me on the call today is Steve Wills, Palatin's Executive Vice President, Chief Financial Officer, and Chief Operating Officer. On today's call, we will provide financial and operating updates. I will now turn the call over to Steve, and he'll provide financial updates. Steve.

Thank you, Carl, and good morning, everyone. Regarding our research and development infrastructure, we have strengthened our R&D department with key appointments who have demonstrated a high level of expertise in their field to support the advancement of our development programs. Regarding Vyleesi, which is FDA approved for the treatment of hypoactive sexual desire disorder, or HSDD, in premenopausal women, our goal with this program is to demonstrate product value in the marketplace with an objective of relicensing the U.S. rights to a committed woman's healthcare company or entity. Our measured plan is showing positive trends for the targeted value metrics. For the quarter ended September 30th, 2021, by leasing gross product sales increased 18%. Net revenue increased 98%. Net revenue per prescription dispensed increased 45% despite a 13% decrease in total prescriptions dispensed over the prior quarter ended June 30th, 2021. Market access, reimbursement coverage, and refill rates have all increased over the prior quarter ended June 30th, 2021, and also over the successive quarters ended December 31st, 2020, and March 31st, 2021. Regarding our overall operating results, specifically revenue, total net revenues consist of gross product sales of by leasy, net of allowances, and accruals. Bileci gross product sales for the quarter ended September 30th, 2021 amounted to 1.4 million with net product revenue of 159,482 compared to gross product sales for the period July 25th, which was the date Palatin regained North American rights to Bileci from AMAG to September 30th, 2020 of 809,100 with negative product revenue for the September 30th, 20 period of $288,560. Regarding operating expenses, total operating expenses for the quarter ended September 30th, 2021 were 7.4 million compared to 3.7 million for the comparable quarter of 2020. Regarding cash flows, Paliton's net cash use and operations for the quarter ended September 30th, 2021 was 6.4 million compared to net cash provided by operations of 3.8 million for the same period in 2020. Regarding net loss, Palatine's net loss for the quarter ended September 30th, 2021 was 7.1 million or 3 cents per basic and diluted common share compared to a net loss of 3.9 million or 2 cents per basic and diluted common share for the same period in 2020. The differences to the operating expenses, the cash flows, and the net loss for the quarters ended September 30th, 2021 and 2020 were primarily due to the gain of 1.6 million in the September 30th, 2020 quarter, which reduced expenses during that quarter, recorded, and specifically due to the Vilesi termination agreement with AMAC, secondarily to increase commercial expenses related to Vilesi. Regarding cash positions, as of September 30th, 2021, Palatin's cash equivalents were $53.4 million, with approximately $900,000 of accounts receivable, compared to cash and cash equivalents of approximately $60.1 million with $1.6 million of accounts receivable as of June 30th, 2021. Based on our current operating plan, we believe that existing cash and cash equivalents will be sufficient to fund currently anticipated operating expenses through calendar year 2022. To be clear, the operating plan does include the comprehensive expenses covering Palatine's significant inflection points of data readout for our phase three dry eye disease trial, and also data readout for our planned ulcerative colitis phase two trial, both in the second half of calendar 2022. At this time, I'll turn the call back over to Carl.