Palatin Technologies Announces New 2008 Strategic Objectives / Third Quarter Financial Results

CRANBURY, N.J., May 13  -- Palatin Technologies, Inc. (Amex: PTN) today reported its financial results for the third quarter ended March 31, 2008 and announced new strategic objectives as part of a restructuring of its clinical-stage product portfolio and development programs. 

Palatin will continue to develop products targeting melanocortin and natriuretic receptors in the sexual dysfunction, obesity, and cardiovascular fields, including acute hospital care products for use in treatment of acute systemic hypertension, congestive heart failure and hemorrhagic shock. 

The restructuring focuses the Company's resources on the programs and opportunities that management believes are most likely to increase shareholder value. Additional details will be provided by management in a conference call today at 11:00 a.m. Eastern Time.

Strategic Restructuring

Palatin has undertaken a strategic restructuring with the following elements and objectives:

-- Following a detailed evaluation, including review of regulatory and commercial information and data on its new melanocortin compounds under development for sexual dysfunction, Palatin has discontinued development of bremelanotide for the treatment of male and female sexual dysfunction;

-- Developing bremelanotide as a therapeutic drug for treatment of hemorrhagic shock and related indications (shock induced by blood loss, such as secondary to surgery or trauma);

-- Initiating a Phase 2A study this quarter with PL-3994, Palatin's natriuretic peptide receptor A agonist compound, in patients with controlled hypertension;

-- Initiating a Phase 2A study of PL-3994 during the next fiscal year for treatment of acute congestive heart failure;

-- Advancing new Palatin compound PL-6983, which in animal models causes significantly lower increases in blood pressure than seen with bremelanotide, into Phase 1 clinical studies for treatment of male and female sexual dysfunction;

-- Continuing its melanocortin receptor-based collaboration with AstraZeneca AB on developing compounds for treating obesity; and 

-- Effecting an immediate reduction in force of 30% of the Company's employees.

"Palatin has had a strong and productive research effort focused on two challenging and exciting scientific areas: melanocortin and natriuretic peptide receptors. We have generated a substantial amount of data and an extensive product portfolio that allows us numerous exciting opportunities to drive value for our shareholders," stated Carl Spana, Ph.D., President and Chief Executive Officer of Palatin. Dr. Spana continued, "Concentrating our efforts on value drivers and matching our resources to those projects with the highest potential for near-term success is our immediate priority."

The Company believes that the staff reduction aligns the Company's human resources with its new strategic objectives and will allow the Company to effectively advance its development and clinical programs. The downsizing is expected to result in annual savings of approximately $3 million. Palatin will record an estimated $400,000 charge for severance and related costs in the quarter ending June 30, 2008. The Company, which ended the March 31, 2008 quarter with $17.6 million of cash, cash equivalents and available-for-sale investments, anticipates that the restructuring will reduce its cash burn rate to approximately $16 million over the next four quarters.

Also see the Bremelanotide Bulletin

About ED

ED is defined as the consistent inability to attain and maintain an erection sufficient for sexual intercourse.  The condition is correlated with increasing age, cardiovascular disease, hypertension, diabetes, hyperlipidemia, and smoking.  In addition, certain prescription drugs and psychogenic issues may contribute to ED.  It is estimated that some degree of ED affects one half of all men over the age of 40 and that 150 million men worldwide suffer from ED.

About Palatin Technologies, Inc.

Palatin Technologies, Inc. is a biopharmaceutical company primarily focused on discovering and developing targeted, receptor-specific peptide and small molecule therapeutics, including melanocortin ("MC")-based therapeutics. Therapeutics affecting the activity of the MC family of receptors may have the potential to treat a variety of conditions and diseases, including sexual dysfunction, obesity and related disorders, cachexia, hemorrhagic shock and inflammation-related diseases. 

The Company is exploring other receptor- specific therapeutics, including natriuretic peptide receptor A ("NPRA") agonist compounds for use in treatment of acute systemic hypertension, congestive heart failure and other diseases. Palatin's strategy is to develop products and then form marketing collaborations with industry leaders in order to maximize their commercial potential. The Company currently has collaborations with AstraZeneca and the Mallinckrodt division of Covidien. 

For additional information regarding Palatin, please visit Palatin Technologies' website at:

SOURCE  Palatin Technologies