Palatin Technologies (NYSE American: PTN) is making significant strides in its drug development pipeline, focusing on therapeutics for dry eye disease, obesity, and sexual dysfunction. The company's recent earnings call highlighted progress in clinical trials, strategic partnerships, and financial management. Palatin is positioning itself to address unmet medical needs with innovative melanocortin receptor agonists.
Dry Eye Disease Program
Palatin's lead ocular asset, PL9643, is a topically administered treatment for dry eye disease (DED). The company has successfully completed the first Phase III trial, MELODY-1, demonstrating excellent ocular tolerability and broad efficacy in multiple signs and symptoms of DED. According to Carl Spana, PhD, President and CEO of Palatin, current FDA-approved treatments for DED have significant limitations, including poor tolerability and slow onset of action. PL9643 aims to overcome these challenges with rapid efficacy and a favorable safety profile.
In the MELODY-1 trial, PL9643 achieved statistical significance for the co-primary endpoints of ocular pain and multiple secondary symptom endpoints, including eye dryness and ocular discomfort. Notably, the drug demonstrated efficacy as early as two weeks after starting treatment, with continued improvement over the 12-week treatment period. The FDA has agreed with Palatin's plan for the remaining activities required to file a new drug application (NDA), with all remaining clinical studies to be conducted and completed in calendar year 2025 and an anticipated NDA filing in the first half of calendar year 2026.
Obesity Treatment
Palatin is also advancing a Phase II clinical study combining the melanocortin-4 receptor (MC4R) agonist bremelanotide with tirzepatide, a glucagon-like peptide-1 (GLP-1) receptor agonist, for obesity treatment. The study aims to demonstrate the safety and increased efficacy of co-administering bremelanotide with tirzepatide on reducing body weight. The trial is designed to enroll approximately 60 obese subjects at four sites in the US, with topline data expected in the first quarter of calendar year 2025.
According to Dr. Spana, combining an MC4R agonist with a GLP-1 receptor agonist may result in synergistic effects on weight loss, allowing for increased or sustained weight loss at lower and better-tolerated doses. This approach could address the limitations of current incretin-based therapeutics, such as Zepbound and Wegovy, which often see high discontinuation rates due to side effects and a plateau effect.
Palatin is also developing next-generation highly selective melanocortin-4 receptor peptide agonists and small molecules for obesity and weight loss maintenance. These new MCR4 receptor peptide agonists are designed to have once-a-week dosing and are not anticipated to have skin darkening as a side effect.
Male Sexual Dysfunction
Palatin is developing a novel product for male sexual dysfunction, a co-formulation of bremelanotide and a phosphodiesterase-5 (PDE-5) inhibitor. This product is intended for the 35% of men with erectile dysfunction who have an inadequate response to PDE-5 inhibitor therapy. A pharmacokinetic study is expected to initiate in the first half of calendar year 2025, with patient recruitment in a Phase II clinical study anticipated in the second half of calendar year 2025 and topline results in 2026.
Financial Overview
Palatin reported no product sales for the fourth quarter of 2024 but highlighted a significant asset sale of its product Vyleesi to Cosette Pharmaceuticals for up to $171 million. The company raised $21 million in funding during the fiscal year and reduced operating expenses, contributing to a reduced net loss compared to Q4 2023. As of June 30, 2024, Palatin's cash and cash equivalents were $9.5 million.
Despite these advancements, Palatin faces financial challenges. An InvestingPro Tip indicates that Palatin is "quickly burning through cash," underscoring the importance of securing collaborations and funding to support its clinical programs. The company is actively engaged with multiple parties for potential funding sources, including business development efforts and collaborations with entities involved with the same programs that Palatin is advancing.
Palatin's strategy involves developing melanocortin receptor agonists, a class of molecules that modulate the activity of the melanocortin receptor system, which plays a role in various physiological functions. The company seeks to develop first-in-class medicines for diseases with significant unmet medical need and commercial potential. With multiple clinical trials in progress and a clear strategy for advancing its key programs, Palatin is actively working to secure the necessary collaborations and funding to bring its products to market.
