Palatin's Q2 2025 Earnings Call: Contradictions Unveiled on Obesity Studies and Strategic Focus

These are the key contradictions discussed in Palatin's latest 2025Q2 earnings call, specifically including: Obesity Study Benchmarks and Expectations, Strategic Focus on Obesity Indications, and Potential Indications Beyond the Broader Weight Loss Community.



Obesity and Weight Loss Programs:
- Palatin has completed a Phase II signal detection study (BMT-801) evaluating the safety and efficacy of co-administering a melanocortin 4 receptor agonist (bremelanotide) with tirzepatide in patients with generalized obesity.
- Top-line data is expected later in the month, and Palatin is focused on weighing loss and maintenance programs, with plans to move both long-acting and orally active compounds into IND-enabling activities and clinical studies in 2025.
- The company's strategy is to out-license its obesity programs, with ongoing discussions with potential partners.

Financial Performance and Cash Position:
- Palatin's net loss for the quarter ended December 31, 2024 was $2.4 million, compared to a net loss of $7.8 million for the same period in 2023, driven by a change in fair values of warrant liability and elimination of Vyleesi net product revenue and selling expenses.
- The company's cash and cash equivalents as of December 31, 2024 were $3.4 million, including net proceeds from an equity offering in February 2025.
- Palatin is actively engaged in securing funding for future operating cash requirements.

Diabetic Kidney Disease and Ocular Melanocortin Programs:
- Top-line data from the Phase II BREAKOUT study for bremelanotide as a treatment for diabetic kidney disease showed that 71% of patients achieved a greater than 30% reduction in their urinary protein-to-creatinine ratio.
- Palatin has initiated discussions with potential partners for out-licensing this program and is exploring strategic partnerships, investors, and business combinations for its ocular melanocortin program.

Melanocortin 4 Receptor Assets and Market Opportunities:
- Palatin is focusing its research and development efforts on its melanocortin 4 receptor obesity asset, aiming to capitalize on a market value in excess of $100 billion per year.
- The company is exploring potential indications beyond broader weight loss, including orphan indications, and sees competition in the sector with Rhythm's setmelanotide.