Palatin Technologies (PTN) Stock Rockets On COVID-19 News

Palatin Technologies, Inc. (NYSEAMERICAN: PTN) is running for the top in the market this morning, trading on gains around 30%. The gains come after the company announced that it will study one of its candidates as a potential option for COVID-19 patients. Here’s what’s happening:

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PTN Stock Is Flying On COVID-19 News

In the press release, Palatin Technologies said that it is developing PL8177 as a potential treatment for patients with COVID-19. In particular, the treatment is expected to be effective against hypoxemic respiratory failure in this patient population whether or not they have acute respiratory distress syndrome.

In the release, PTN said that the decision to study the drug as a potential treatment for COVID-19 patients came after positive results in preclinical multiple inflammatory disease models and lung injury proved to be positive. In fact, the results, showed that PL8177 has the ability to reduce inflammation, protect lung tissue and reduce lung fibrosis.

In the release, the company said that it has submitted a preliminary proposal to the Biomedical Advanced Research and Development authority, received technical and strategic advice, and submitted a pre-IND package to the Division of Pulmonary, Allergy, and Critical Care of the United States FDA.

Based on advice from DPACC the company said that it is planning to submit an IND to the FDA in the third quarter of this year, with a Phase 2 clinical trial being initiated in Q4. Importantly, required preclinical and Phase 1 safety studies have already been completed and support the safe use of PL8177 in a Phase 2 study.

Importantly, the company also said that it is pursuing multiple sources of research and development grants to support the clinical development of PL8177. In a statement, Dr. Carl Spana, President and CEO at PTN, had the following to offer:

We are excited about PL8177’s potential to be part of the solution to this unprecedented global public health crisis. What is differentiating about PL8177 is its potential to reduce the inflammation associated with progressive COVID-19 disease and to reduce lung fibrosis, which can compromise patient lung function after recovering from the viral infection.

The adaptive design of the Phase 2 clinical study will provide early and multiple looks at the results, allowing us to assess the effectiveness of PL8177 and possible study modifications for patient benefit.

Why This News Is Huge

The news release by Palatin Technologies this morning is massive. First and foremost, the company is expected to head into a Phase 2 clinical trial soon. This means that multiple catalysts are just around the corner.

However, the excitement goes further than that. As we watch a resurgance of COVID-19 cases take place across the United States, the need for a treatment for these patients has never been more clear.

Considering the strong preclinical results, this may be the treatment that many have been waiting for. As such, PTN is a stock that’s well worth watching!

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1 thought on “Palatin Technologies (PTN) Stock Rockets On COVID-19 News”

  1. Some very salient points. Amag has been handling the marketing of Vyleesi with Palatin benefitting from the development agreement. Palatin is also seeking approval globally now that it is approved in the US. Once more global markets are on board and Amag is divested, the stock should hit a very high note. It might also be acquired by a larger pharma looking for attractive pipeline, and that would cause the stock to rise as well. Now that it has such a diverse and promising portfolio it wouldn’t surprise anyone if it went to the 3 to 6 dollar range or higher, soon.

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