Palatin Technologies Inc. Common Stock (PTN)

FairStock Score: 26/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that can earn consistent profits and generate cash without heroic assumptions. Palatin does not yet fit that mold. It is a 25-person biopharmaceutical company developing melanocortin-receptor medicines, with programs from preclinical through Phase 2. In fiscal FY2026 (year ended 2026-06-30), it reported revenue of $13.2M and a net loss of $8.4M, or diluted EPS -$2.96. That looks better than fiscal FY2025 (no revenue, net loss $17.3M, EPS -$32.15) and FY2024 (revenue $4.5M, net loss $29.7M, EPS -$101.16), but the quarterly pattern is erratic: fiscal Q1 2026 (period ended 2025-09-30) showed revenue $8.8M and net income $4.7M, while fiscal Q2 2026 (period ended 2025-12-31) had revenue $116,036 and a net loss of $7.3M. A moat is not evident from filed figures; the value depends on clinical and regulatory outcomes. Financially, trailing free cash flow was -$15.0M and FCF yield -102.7%, so cash burn is large relative to the $14.6M market cap. The balance sheet shows low leverage (D/E 0.03), but Altman Z-Score -44.87 is distressed, Piotroski F-Score is 3/9, ROE is -297.24%, and ROCE is -65.26%. At the close on 2026-10-13, the FairStock P/E was 74.45, P/B 1.37, and Graham Number $3.84, implying a -113.28% margin of safety—the price is not cheap by those measures. The Lynch category is none because losses occurred in each of the last four years. Growth is speculative, not established. I would require evidence of durable revenue and reduced cash burn before calling this investment-grade.

In plain English: Palatin is a small biotech company that develops medicines for conditions such as obesity and dry eye. It has very little revenue, has been losing money, and burns cash. Based on the numbers provided, the shares look expensive rather than cheap, because the business is not yet consistently profitable and the price is well above the value suggested by its financial statements.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer