Palatin Technologies PTN Stock News

Palatin Technologies, Inc. (NYSEAMERICAN: PTN) is seeing some welcomed strength in the market this morning. After announcing regulatory approval of Vyleesi, the company was the target of a sell-side attack by Adam Feuerstein that cause the stock to tank (The attack was unwarranted, read this).

Nonetheless, after issuing a corporate update in the pre-market hours this morning, PTN stock is seeing strength. Here’s what’s going on:

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PTN Stock Gains On Corporate Update

After issuing a corporate update via press release early this morning, Palatin Technologies is finding its way to the green. The first part of the update had to do with Vyleesi, the company’s female sexual desire drug.

In the release, PTN reminded investors that AMAG Pharmaceuticals, a company that licensed the rights to Vyleesi, has received approval from the FDA. The treatment was approved and indicated for premenopausal women with acquired, generalized hypoactive sexual desire disorder.

As a result of the FDA’s approval of the treatment, the company received a $60 million milestone payment from AMAG under its license agreement. It is expected that Vyleesi will be the center of a commercial launch that will take place in September of 2019.

This is important as there are hundreds of millions of dollars up for grabs in potential commercial milestone payments and even more up for grabs in royalties should all go well.

PTN also provided an update with regard to Melanocortin Agonists under development. These treatements are under development as a potential option for inflammatory and autoimmune diseases like dry eye, uveitis, diabetic retinopathy and inflammatory bowel disease.

The company said that it’s lead candidate in this arm, PL-8177 is progressing well. In fact, the treatment received Orphan Drug Designation and continues to move in the right direction in the clinic.  The company also said that it expects to submit an IND application for PL-9643 shortly with a Phase 2 trial taking place in the first half of 2020.

Moreover, Palatin Technologies siad that PL-3994, part of its natriuretic peptide receptor system program, has potential utility in the treatment of several cardiovascular diseases. Also, PL-5028 is showing promise in cardiovascular disease, including reduced cardiac hypertrophy and fibrosis. The company is expecting to start a Phase 2A clinical trial evaluating PL-3994 in heart failure patients in the second half of this year.

Finally, PTN said that its genetic obesity candidates, PL-8905 and PL-9610 are also progressing well. An IND and initiation of a Phase 1 study in genetic obesity are expected to take place in the first half of next year.

Financial Strength

It’s also worth mentioning that as a result of the $60 million milestone payment, the company has cash and cas equivalents of about $102 million. As such, the company has plenty of funding to get through 2021 and opportunity to increase cash on hand through milestones and sales of Vyleesi.

Of course, this means that the company has a strong cash runway that will give it the funds it needs to deliver several catalysts through the rest of this year and next!

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Management Commentary

In a statement, Carl Spana, Ph.D. President and CEO at PTN, had the following to offer:

We accomplished our primary objectives of procuring FDA approval of Vyleesi and advancing our pipeline programs. The FDA approval is an incredible achievement for Palatin, and we are excited that premenopausal women now have a safe and effective, as-needed treatment option available to them for the treatment of HSDD.

Our estimated pro forma cash at June 30, 2019 of $102 million is sufficient to cover planned operations through at least calendar year 2021. We are focused on executing Vyleesi collaborations for territories outside the currently licensed territories of North America, China, and Korea, and initiating multiple Phase 2 trials over the next several quarters for the treatment of non-infectious uveitis, ulcerative colitis and dry eye disease.

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