Palatin Technologies has achieved significant momentum across multiple fronts, advancing its melanocortin-based obesity pipeline while strengthening its financial position through strategic partnerships and successful fundraising. The biopharmaceutical company reported first quarter fiscal 2026 results showing substantial progress toward clinical development of novel obesity treatments targeting the melanocortin-4 receptor (MC4R) pathway.
Obesity Pipeline Advances Toward Clinical Development
The company's lead obesity candidate, PL7737, an oral MC4R agonist, has demonstrated robust weight loss, strong safety profile, and high oral bioavailability in preclinical models. IND-enabling toxicology studies are currently underway, with IND submission and initiation of Phase 1 single- and multiple-ascending dose (SAD/MAD) trials expected in the first half of 2026.
"Palatin's melanocortin-based obesity programs are advancing rapidly, led by our oral small molecule PL7737, which is on track to enter clinical studies in the first half of next year," said Carl Spana, Ph.D., President and CEO of Palatin. "The strength of our preclinical data and our ability to target both broad and rare obesity indications - particularly neuroendocrine diseases such as hypothalamic obesity, underscore the differentiated potential of our melanocortin platform."
The Phase 1 studies are planned to include patients with hypothalamic obesity, a rare and severe form of obesity caused by dysfunction or damage to the hypothalamus. The U.S. FDA has granted Orphan Drug Designation for PL7737 in the treatment of leptin receptor (LEPR) deficiency-related obesity.
Next-Generation Peptide Candidates in Development
Palatin is also developing next-generation selective peptide MC4R agonists designed for once-weekly subcutaneous dosing. These candidates are planned for IND filing and Phase 1 SAD/MAD trial initiation in mid-2026, with studies also expected to include patients with hypothalamic obesity.
Pre-clinical and early clinical data support co-administration of these peptides with tirzepatide as a safe, potentially synergistic approach to weight management, according to the company.
Strategic Partnership Delivers Significant Milestones
The company's collaboration with Boehringer Ingelberg for retinal diseases has generated substantial near-term value. Palatin received an upfront payment of €2.0 million ($2.3 million) in August 2025 and achieved a €5.5 million ($6.5 million) research milestone in September 2025.
The partnership positions Palatin to receive up to €12.5 million ($14.5 million) in additional near-term research milestones and up to €260 million ($307.0 million) in development, regulatory, and commercial milestones, plus tiered royalties on future net sales.
Strong Financial Performance and Funding
Palatin completed an $18.2 million underwritten public offering in November 2025, including full exercise of the over-allotment option. The offering consisted of 2,795,384 shares of common stock with accompanying Series J and Series K warrants at a combined public offering price of $6.50 per share.
For the quarter ended September 30, 2025, Palatin recognized $8,847,550 in collaboration and license revenue compared to $0 for the comparable quarter last year, primarily from the Boehringer Ingelberg agreement. The company reported net income of $4.7 million, or $4.81 per basic common share, compared to a net loss of $7.8 million in the prior year quarter.
Operating expenses decreased to $4.2 million from $7.8 million in the comparable quarter last year, mainly due to reduced spending on MCR development programs. Net cash used in operations improved significantly to $1.6 million from $7.0 million in the prior year quarter.
Addressing Significant Unmet Medical Need
Hypothalamic obesity represents a particularly challenging condition with no currently approved pharmacologic treatments. Individuals with this condition typically experience rapid, excessive weight gain, uncontrollable hunger, and profound metabolic disturbances that are resistant to conventional diet, exercise, and behavioral interventions.
The condition can occur as an acquired condition, most commonly after surgery or radiation therapy for brain tumors such as craniopharyngioma, or as a congenital disorder associated with genetic syndromes affecting hypothalamic function.
Broader Pipeline Progress
Beyond obesity, Palatin reported positive results across its melanocortin receptor agonist portfolio. The company's PL9643 for dry eye disease showed positive Phase 3 MELODY-1 results, with 6 of 13 symptom endpoints demonstrating statistically significant complete symptom resolution versus placebo (p<0.05). PL8177 for ulcerative colitis achieved positive Phase 2 proof-of-concept results, and the company reported positive Phase 2 open label data for diabetic nephropathy applications.
Out-licensing discussions are ongoing for these programs as Palatin continues its strategy of developing products and forming marketing collaborations with industry leaders to maximize commercial potential.
The company regained compliance with NYSE American listing standards and resumed trading under the symbol "PTN" on November 12, 2025. With the recent funding and partnership milestones, Palatin expects a cash runway beyond the quarter ending December 31, 2026.
