Palatin Technologies PTN Stock News

Palatin Technologies, Inc. (NYSEAMERICAN: PTN) is making a run for the top in the market this morning, trading on gains of well over 10% after the FDA approved a treatment. The treatment, designed to restore sexual desire in premenopausal women, has incredible market potential and the approval triggers a large milestone payment. Here’s what’s happening:

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PTN Stock Rockets After FDA Approves Vyleesi

Palatin Technologies stock is making a run for the top in the market this morning after the United States Food and Drug Administration approved Vyleesi. This is the first approved treatment for female sexual desire disorders, ecxiting investors.

The treatment was licensed to Amag Pharmaceuticals back in 2017. On top of the $60 million up front license fee paid to PTN, the company also has the potential to earn hundreds of millions of dollars in milestones plus tiered royalties.

Of course, approval for a market entrance in the United States was one of these milestones. As a result, the action has triggered a payment of $60 million to be made to PTN.

Outside of the mileston payment associated with approval, Palatin Technologies is also entitled to various sales milestones. The first of which will be $25 million, should net sales exceed $250 million.

This milestone shouldn’t be too far off. After all, this is the first approved treatment for this indication. Moreover, a large amount of women suffere from loss of sexual desire, opening the doors to a large market. In fact, it is estimated that the treatment could quickly rise to peak net sales of around $1 billion per year.

A Lot To Look Forward To Ahead

While the recent approval is great news, it’s not the only reason to be excited about PTN stock. In fact, the milestone and royalty payments that the company will receive as a result of the approval will likely serve to fund other clinical development programs.

At the moment, Palatin Technologies has 2 clinical development programs underway. Both of these programs are in Phase 1 development, one for the treatment of inflammatory bowel disease and the other is being developed as an option for cardiovascular disease.

Moreover, PTN also has 3 preclinical development programs, all targeting high value indications. As such, the funding received will help to push these programs through development and hopefully to market approval.

Nonetheless, with so much going on in the pre-clinical development and clinical development arms at PTN, there are several catalysts ahead.

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Final Thoughts

The news that the FDA has approved Vyleesi is great. After all, it will drive important funding into the company that will allow it to push current assets under development down the path while likely giving the company an opportunity to expand its already robust pipeline. For this reason, I believe that PTN stock is one that should be watched closely.

What Do You Think?

Where do you think PTN stock is headed moving forward? Join the discussion in the comments below!

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