Palatin Technologies, Inc.

Good day, ladies and gentlemen, and welcome to the Palatin's third quarter fiscal year 2021 operating results conference call. As a reminder, this call is being recorded. Before we begin our remarks, I would 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 the actual results may differ materially from those anticipated due to the variety of risks and uncertainties discussed in the company's most recent filings with the Security Exchange Commission. Please consider such risk and uncertainties carefully in evaluating these forward-looking statements and Palatin's prospects. Now I'd like to turn the call over to your host, Dr. Carl Spana, President and Chief Executive Officer of Palatin. Please go ahead, sir.

Thank you. Good morning and welcome to the Palatin Technologies third quarter fiscal year 2021 call. I'm Dr. Carl Spana, CEO and President of Palatin. With me on the call today is Steve Wills, Palatine'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 as well as an update on the exciting and significant progress we are making with Bilesi. Steve.

Thank you, Carl, and good morning, everyone. Regarding our third quarter 2021 financial results, which is Palatine's quarter-ended March 31st, 21, Total net revenue consisting of net product revenue of Vilesi was $88,741. There was no revenue reported for the third quarter of 2020. Vilesi gross sales amounted to $1,780,020 with net product revenue, again, of $88,741 net of allowances and accruals compared to gross sales for the quarter ended December 31st, 2020 of $943,950 with net product revenue of negative $163,971 net of allowances and accruals. Total operating expenses were $6.6 million, compared to $5.7 million for the same period in 2020. The increase was mainly due to commercial expenses related to Varlisi. Palatin's net loss was $5.7 million, or two cents per share, compared to a net loss of $5.4 million, or two cents per share, for the comparable quarter of 2020. As of March 31st, 2021, Palatin had $68.6 million in cash and cash equivalents and $1.9 million in accounts receivable, compared to $82.9 million in cash and cash equivalents and no accounts receivable as of June 30th, 2020. Palatin has no outstanding debt. Regarding Vyleesi, our FDA-approved product for hypoactive sexual desire disorder, or HSD, date, For the quarter ended March 31st, 2020, over the prior quarter ended December 31st, 2020, gross product sales increased 89 percent, net revenue increased 154 percent, and prescriptions increased 24 percent. Very significant numbers for the quarter. Geo-targeted marketing efforts are expected to drive healthcare provider and consumer engagement. The current digital campaign applications reach thousands of healthcare providers and millions of premenopausal women monthly and has resulted in increased website and telemedicine traffic and conversions. We continue to focus on expanding access and reimbursement coverage. We estimate ByLisi has achieved approximately 75% of commercially insured lives and approximately 50% of commercial formulary coverage, including two of the three major pharmacy benefit managers and numerous regional plans. Prescription increases and expanding access and reimbursement coverage have resulted in more favorable gross to net adjustments and positive quarterly net product revenue for the first time. I'll now turn the call back over to Carl. Carl?