Good morning, ladies and gentlemen, and welcome to the Palatin Technologies Fourth Quarter Fiscal Year End for 2012 Call. As a reminder, this call is being recorded. Before we begin our remarks, I would like to remind you that statements by Palatin that are not historical facts may be forward-looking statements. These statements are based on assumptions that may or may not prove to be accurate and the actual results could differ materially from those anticipated due to a variety of risks and uncertainties discussed in the company’s most recent filings with the Securities and Exchange Commission. Please consider such risks and uncertainties carefully in evaluating these forward-looking statements and Palatin’s prospects. Now I would like to introduce your host for today’s call, Dr. Carl Spana, President and Chief Executive Officer of Palatin Technologies. Please go ahead, sir.

Thank you. Good morning. I’m Carl Spana, President and CEO of Palatin Technologies. With me on the call today is Steve Wills, our Chief Financial and Operating Officer, and Executive Vice President; and Dr. Jeffrey Edelson, our Chief Medical Officer. On today’s call we will be providing updates on our product programs and financial results. To begin, Steve Wills will provide an update on our fiscal fourth quarter 2012 financial results. Steve?

Thank you, Carl, and good morning everyone. Regarding our financial operating results, Palatin’s net loss for the quarter ended June 30, 2012 was $5.3 million or $0.14 per basic and diluted share compared to a net loss of $3.3 million or $0.09 per basic and diluted share for the quarter ended June 30, 2011. For the year ended June 30, 2012, we reported a net loss of $17.3 million or $0.49 per basic and diluted share compared to a net loss of $12.8 million or $0.64 per basic and diluted share for the year ended June 30, 2011. The change in net loss for the quarter and year ended June 30, 2012 compared to the net loss for the same period of last fiscal year, was primarily the result of costs related to our ongoing Phase 2B clinical trial with bremelanotide for female sexual dysfunction. In addition, in the quarter ended June 30, 2011, Palatin recognized $1.3 million of non-cash, non-operating income related to our March 2011 public offering, which represented the change to the warrant liability accounting. Regarding revenue, total revenue for the quarter ended June 30, 2012 which consisted entirely of amounts recognized under our obesity collaboration with AstraZeneca, was $11,000 compared to $155,000 for the quarter ended June 30, 2011. Revenue for the quarter ended June 30, 2011 consisted mainly of grant revenue pursuant to the Patient Protection and Affordable Care Act of 2010, commonly referred to as Section 48D, and also amounts recognized from AstraZeneca. Total revenues for the year ended June 30, 2012 were $74,000 and consisted entirely of amounts recognized from our collaboration with AstraZeneca. Total revenues for the year ended June 30, 2011 were $1.5 million and consisted of $1 million of grant revenue pursuant to Section 48D, and the remainder from AstraZeneca.…

Thank you, Steve. And now for an update of our programs, starting with our obesity and diabetes melanocortin-4 receptor program which is partnered with AstraZeneca. This program is run under the direction of AstraZeneca. As we have previously reported, AstraZeneca has discontinued development of the clinical candidate AZD2820. This decision was based on a single severe adverse event experienced by an obese patient in a Phase I trial of AZD2820. AstraZeneca has competed an investigation of this severe adverse event and it appears that this severe adverse event was not cardiovascular related, and while not confirmed, it could not be excluded that the severe adverse event was linked to AZD2820. The investigation further concluded that the severe adverse event did not appear did not appear to be related to the melanocortin mechanism of action. Although the discontinuation of AZD2820 is disappointing, AstraZeneca and Palatin remain committed to the development of the melanocortin-4 receptor agonist for the treatment of obesity. Because of the comprehensive nature of the collaboration, we are fortunate to have multiple classes of backup collaboration compounds in various stages of pre-clinical development. AstraZeneca has informed us that they remain committed to the continued advancement of collaboration compounds for the treatment of obesity. Based on our discussions with AstraZeneca, it is our expectation that one or more collaboration compounds will move forward to complete pre-clinical testing and enter into clinical development. Results and proof of principle clinical trials in obese patients with non-commercial compounds that target the melanocortin-4 receptor, showed significant reductions in food intake and weight loss. We believe this clinical data along with earlier work on animal models of obesity demonstrate the significant role that the melanocortin pathway plays in regulating food intake, weight loss, and validates melanocortin-4 receptor as a major target for obesity therapeutics. We…

(Operator Instructions) And we will hear first from Joe Pantginis with Roth Capital Partners.

Good morning. Thanks for taking the question. Couple of questions if you don’t mind. Let's start with the lead program. With FSD, when you do have the data to present, what will you be presenting? Obviously, you know the top line primary end point but you do have a lot of endpoints that you are looking at. So I wanted to get a sense of what we could expect on the street.

We are going to try and present as comprehensive a picture as we can. There are multiple endpoints in this study. As we said, satisfying sexual events, there are patient reported outcome measures that -- such as the female sexual function index that measured changes in arousal and desire. So we will have that data. And then the important third measure that we have is another a (inaudible) that’s called female sexual dysfunction scale. And that also will have data that we will read out as well. So we are not going to just say we hit a primary end point in that set. We will give a fairly comprehensive look at the endpoints that we believe are required to move forward into Phase 3, and as well as a good look of the safety of the drug, how it’s performed in this particular population in the study.

Well, that’s great. And then if you sort of translate to that with your recent raise, you do have a decent amount of money to move into Phase 3. How quickly do you think you would be able to move into Phase 3 and would the design sort of mimic your current Phase 2B or how should we look at that?

You know, the data coming in, as I said in the October timeframe, so by the time we get full data sets in, move forward to end of Phase 2 meeting, we really are targeting second half 2013 to move into Phase 3 trials. I mean we have a lot of activities that have to be done. Such as the end of Phase 2 meeting, setting up the full trials and then going forward from there. In addition, we also want to allow a little bit of time for potential partnership discussions to play out as well. As we expect we will be having substantial interest in the project.

Sure. No, absolutely. And then just switching real quickly over to AstraZeneca. Beyond 2820, obviously you have made a big point though obviously that AstraZeneca still remains committed. They are working on other development compounds. Maybe you could provide a little more color with regard to the stage of those compounds and when we could see some potential news out of those programs.

Sure. I mean I am going to be a little bit restricted here because of, obviously competitive issues and confidentiality concerns on the part of AstraZeneca. But you know the programs they run really -- when we say preclinical, they really run from compounds that are just discovered to compounds that have gone through tox evaluation. So they really approach this with a lot of resources. So it really runs the gamut from close to being able to go into clinic to or [lay] back to vey early. News flow from here, again, what we can't say is having looked at where they are and what's going on, is we are pretty excited about what they have. I think that they really believe this is a key program and that they have a proprietary position. We will battle within as much as we can to be able to disclose as much as we can, as quickly as we can to the Street. But it’s going to be a battle because they do believe this is a validated mechanism and that they have the answer to solving obesity with this mechanism. And they [really] have a [partner] position. So as quickly as we can we will get it out there but, as I said, they go anywhere from readily going to humans to further back.

We will take our next question from Rahul Jasuja with Noble Financial Capital Markets.

Just wanted to go through basically most of the leading programs. Let me start with FSD. So you did talk a little bit about that and the endpoints and so on, but could you -- what's a successful trial? What do you want to tell the Street that will comfort us going into a pivotal study? And then obviously there is, I guess, a lack of experience in understanding FSD from the Street’s point of view. There hasn’t been a lot of drugs in that path. We have had (inaudible) with its use, but what is interesting is a couple of months ago, Sprout reviving Boehringer Ingelheim’s FSD drug and forming a new company around it. So obviously there is huge need there. Could you just comment on those aspects?

Sure. A couple of things here. Let's start from the basics. There have been two ways of measuring efficacy in this indication. And one has been satisfying sexual events which is a very simple counting mechanism. And patients takes the drug or is on the drug that have a sexual encounter and very simple yes or not, was it satisfying. And you count it on a screening period of a base line period and you compare to a period at the end of the study, subtracting, you have got an answer. You know it’s somewhat of a controversial endpoint and has posed problems for a number of sponsors. The other way of measuring efficacy is using patient reported outcome measures which take a more global look at changes in desire, arousal and distress associated with your sexual dysfunction. And those endpoints tend to probably be tracked with the disease and tend to be probably more relevant to the patient in satisfying sexual events. And what's happening, from what we can tell from our discussions with people and thought leaders, we are aware of Sprout. As you can imagine we try to do the best in competitive intelligence that we can, the endpoints are changing a little bit here. It’s not clear what Sprout will present to the FDA as the key endpoints for flibanserin. There will be some mixture of patient [supported] outcome measures like the female sexual function index as well as satisfying sexual events. The question is order, which will be primary and which will be secondary. And that’s really what is up for discussion. The two things that I feel, and we think we believe very strongly on that are very important really, are results on the female sexual function index and then on the female sexual distress scale. Those are the key elements of the diagnosis and they are key elements that need to be improved for the patient to feel that they have gotten better. That’s not to diminish satisfying sexual events, it’s a key endpoint we well, but it probably doesn’t track as well with the disease and is probably not as well related. And trying to read the tea leaves is, I think is going to be some flexibility on which of those are primary endpoints in Phase 3. So we are really looking to hit all of them but clearly we want to hit FSFI and FSDS and have a successful study.

And Carl, you know the FDA really hasn’t weighed in with a guidance document of late on FSD, have they?

Well, actually the pulled the typed guidance document that they had out and I think what they are looking for are for responses to come in with well designed Phase 2 programs that have the data that validates why the endpoints you propose for Phase 3 are the ones that are meaningful to the patient and should be there. And that’s what our study is designed to do. We are looking at three types of endpoints here and the ones that are successful or most relevant to the patients are the ones that we will propose to go forward within the Phase 3. And we will be in the fortunate position to actually have real Phase 2B data from a decent sized study that’s supports the selection of those endpoints. And that’s a little bit different then other sponsors have been

All right, thanks. Let me move on to couple of questions on obesity. You know we have that [assay] in that one patient and it was potentially the highest dose. And the healthy volunteers were given that particular dose or higher and there wasn’t an issue. Could you talk to us about, is this AstraZeneca being really conservative, and they probably should do that, but was it a patient specific event, was it a highly compromised patient? It wasn’t an allergic or immune response, it was probably something else. Could you just add to that?

Sure. Again, a couple of caveats here. We didn’t run the study. It’s not in our direction. This is under the direction of AstraZeneca and we have to observe their confidentiality. And again, we weren’t directly involved in working with the site that ran the trial, or handling the SAE or in that nature. So we have been in discussions with AstraZeneca. What we can say is it was not a cardiovascular event. It was temporary related to the administration of AZD 2820 but it couldn’t be definitively said that it was related to the drug or not. And they made their decision. What's important for us is that it wasn’t cardiovascular related and not related to the mechanism of action. I think those are the two key things followed up with the fact that we have a number of great compounds behind that that can go into development quickly. And really we will have to leave it at that because anything past that really becomes speculation.

All right. Then finally on to preclinical program. The MCR [pathway] you just alluded to, that seems interesting. What is the -- so you have got cash now, what are the plans in terms of propagating the preclinical programs. And where do you see the path for MCR-1, or is it just MCR-1 or is it MCR-2 as well in looking at future therapeutic areas?

Well, certainly MCR-2 is the ACDH receptor and it’s not been an area for interest for us. We have done a lot of work here that we have not talked a lot about because we have had programs that were in the clinical. In the melanocortin-1 receptor area, and we believe that those compounds are quite interesting. The science behind them has been growing over the last several years, evidenced by the fact that there are now several MCR-1 compounds actually in clinical development for various indications. There is an IBD drug getting ready to enter phase 2 from a Japanese company, and then Abbott bought a mixed MCR-1 receptor for protection of renal damage from ischemic disease earlier this year. So it is an area that is heating up and there is lot of corporate interest. So we would find ourselves in a very fortuitous position in that we have a comprehensive library of compounds. We have got good pharmacology, good activity in a number of systems and the resources to put to work to bring them forward. And on top of that we have quite a lot of corporate interest. So I we think we can bring a partner in as well to help. So you will see us moving really in the immune modulatory and anti-inflammatory indications with compounds. And as we generate more preclinical data and we make decisions to go forward, we will inform the Street and get strong clarity as to what programs we think are the most promising.

Ladies and gentlemen, that is all the time we have for questions. I would now like to turn the call back over to Dr. Spana for any additional or closing remarks.

I would like to thank everyone for participating on our year-end conference call. Also thank the questioners, there were some very good questions. And with that I would like to say have a great day and we look forward to keeping you informed of our progress and certainly we are looking forward to our upcoming data. We are quite excited here and we think we have a great product in bremelanotide and a number of interesting programs behind that. And I would say we are excited and we are looking forward to data and getting it out to you as soon as we can. So have a great day and talk to you as soon as we have data.

Again, thank you ladies and gentlemen. That does conclude today's presentation. You may now disconnect.