Why Did Palatin Technologies Plunge 20.58% Despite Positive Obesity Study Results?

On April 1, 2025, Palatin Technologies experienced a significant drop of 20.58% in pre-market trading, reflecting a notable shift in investor sentiment towards the biopharmaceutical company.

Palatin Technologies recently announced positive results from its Phase 2 obesity study, where the co-administration of its MC4R agonist bremelanotide with GLP-1/GIP tirzepatide met its primary endpoint. The study demonstrated a 4.4% reduction in weight for the co-administered group compared to 1.6% for the placebo group, highlighting the potential of this combination therapy in weight management.

The study also showed that 40% of patients in the co-administered group achieved a 5% reduction in body weight, while 27% achieved a 6% reduction, and 19% achieved a 7% reduction. These results suggest a synergistic effect between the two compounds, offering a promising approach to obesity treatment.

Palatin Technologies is advancing the development of its next-generation MC4R long-acting peptides and oral small molecules, with IND applications planned for the fourth quarter of 2025 and clinical data expected in the first half of 2026. The company is also exploring the use of these therapies in combination with GLP-1/GIP therapy and as monotherapy for multiple genetic obesity disorders.