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Palatin (PTN) 1 Oct 24 2024 Q4 Earnings call transcript

AInvestTuesday, Oct 1, 2024 8:14 pm ET
2min read

Palatin Technologies' recent earnings call for the fiscal year ended June 30, 2024, showcased a year of significant growth and strategic advancements across their pipeline programs. The company, led by CEO Dr. Carl Spana and CFO Steve Wills, provided an in-depth update on their progress in areas such as obesity treatments, dry eye disease, and glaucoma, highlighting their commitment to innovation and addressing unmet medical needs.

Financial Highlights

Steve Wills began the call by discussing Palatin's financial performance, including the successful sale of Vyleesi rights to Cosette Pharmaceuticals for up to $171 million. This sale, which included an upfront payment of $12 million with potential milestones, allowed Palatin to retain rights to bremelanotide for obesity and male treatment indications. The company also raised gross proceeds of $21 million through registered direct and warrant inducement offerings.

Strategic Developments and Progress

Dr. Carl Spana then highlighted the company's strategic achievements, beginning with their ocular programs. The MELODY-1 Phase III trial results for PL9643, a topically administered treatment for dry eye disease, demonstrated its potential to be a leading treatment with excellent ocular tolerability and broad efficacy. Palatin also made substantial progress in the development of PL9588 for glaucoma, with its direct neuroprotection capabilities, and PL9654 for various retinopathies, which has the potential to preserve vision and protect the retina from damage.

In the area of obesity treatments, Palatin's MCR4 melanocortin receptor obesity program is poised for success, with ongoing Phase II studies investigating the co-administration of bremelanotide and tirzepatide. This combination is expected to provide additive effects on weight loss, addressing the limitations of current treatments. The company is also developing next-generation MCR4 receptor peptide agonists, which are highly selective and do not cause skin darkening, a common issue with first-generation agonists.

Future Outlook

Looking ahead, Palatin plans to continue its focus on the development of key programs in obesity and dry eye disease, with upcoming milestones including the completion of Phase III trials for MELODY-2 and MELODY-3, and the initiation of a development and clinical program for bremelanotide co-formulated with a PDE-5 inhibitor for the treatment of rectal dysfunction. The company is also actively seeking collaborations and partnerships to support the licensing of its major programs and earlier pipeline projects.

Investor Questions and Answers

The call concluded with questions from investors, with a focus on the potential for co-formulating MCR4 agonists with GLP-1s, the progress of the dry eye disease program, and the potential for partnerships and funding. Palatin's leadership team provided insightful responses, highlighting the company's strategic direction and confidence in its pipeline.

In summary, Palatin Technologies' earnings call underscored a year of significant progress and strategic advancements. With a focus on addressing unmet medical needs through innovative treatments, the company is well-positioned for continued growth and success in the coming years.

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