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Palatin Technologies Reports Financial Results and Clinical Updates in Q2 FY2025

Palatin Technologies, Inc., a biopharmaceutical firm targeting innovative treatments for various health conditions, has unveiled its financial results for the fiscal second quarter ending December 31, 2024. In addition to its financial performance, the company has also made notable progress in its clinical studies concerning obesity treatment.

Financial Highlights

In the recent quarter, Palatin did not record any product sales following its decision to sell the worldwide rights of Vyleesi, a drug indicated for female sexual dysfunction, to Cosette Pharmaceuticals in a deal potentially worth up to $171 million. Last year, during the same quarter, the gross product sales reached $4.3 million, leading to net revenues of $2.0 million. This significant shift has been attributed to the absence of Vyleesi sales, impacting overall revenue streams.

Operating expenses for the quarter totalled $2.6 million. This figure includes a notable gain of $2.5 million from the aforementioned sale. Comparative figures indicate an increase in operating expenses, driven primarily by the decreased gains from Vyleesi's sale compared to last year when $7.8 million was realized.

Palatin’s net loss for the quarter was recorded at $2.4 million, or $(0.12) per share, marking a decrease from the $7.8 million loss ($0.56 per share) reported in the same period in 2023. The reduction in net loss can be largely attributed to the changes in the fair value of warrant liabilities, alongside the elimination of revenue and selling expenses pertaining to Vyleesi.

As of December 31, 2024, the company held $3.4 million in cash and cash equivalents, which is an improvement from $2.4 million reported at the end of September 2024. This cash position does not include an additional $4.3 million from an equity offering that closed in February 2025, suggesting a strategic approach towards enhancing liquidity to support ongoing operations.

Clinical Study Updates

Alongside its financial results, Palatin announced the completion of the database lock for its Phase 2 obesity co-administration study featuring bremelanotide, an MC4R agonist, in combination with tirzepatide, a dual GLP-1/GIP agonist. This milestone is pivotal as the company anticipates topline results to be released by the end of February 2025. The primary aim of this study is to validate the safety and efficacy of this combination therapy in reducing body weight among patients suffering from obesity.

Dr. Carl Spana, President, and CEO of Palatin, emphasized the importance of these developments: "Achieving a database lock signifies our commitment to providing alternative treatments for the millions struggling with obesity. We are optimistic about the results and view the MC4R pathway as a critical target for treating obesity and related health conditions."

Palatin is also accelerating the development of their innovative, long-acting MC4R agonists and oral small molecules, with plans to commence Investigational New Drug (IND) enabling activities in the first quarter of 2025. The firm is exploring multiple trial paths aimed at managing general obesity and treating rare MC4R pathway-related disorders, further reinforcing its position in the biotech sector.

Moreover, in the realm of non-obesity treatments, Palatin continues to push forward with clinical trials for dry eye disease and ulcerative colitis, expecting to disclose topline data from these initiatives shortly.

Conclusion

Palatin Technologies is making substantial strides in both its clinical initiatives and financial management as it progresses through fiscal year 2025. With its commitment to addressing significant medical needs in obesity and other health conditions, the firm positions itself as a key player in the biopharmaceutical landscape. As Palatin approaches critical data releases and further clinical trials, stakeholders remain optimistically engaged with the company’s growth trajectory.

For further updates, investors and interested individuals may attend the upcoming conference call and webcast to discuss these developments in detail.

For more information on Palatin Technologies and its innovative approaches, visit www.palatin.com.