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CRANBURY, N.J. - Palatin Technologies, Inc. (NYSE American: PTN), a clinical-stage biotech company with a market capitalization of $17.22 million, has announced positive results from a Phase 2 obesity study, showing significant weight loss in patients treated with a combination of drugs. The study, which focused on the co-administration of bremelanotide and tirzepatide, met its primary endpoint with a statistically significant reduction in weight compared to placebo. According to InvestingPro data, while the company’s stock has faced challenges, dropping over 64% in the past year, its current price suggests potential undervaluation relative to its Fair Value.
Over an 8-week treatment period, the group receiving the drug combination experienced an average weight loss of 4.4%, outperforming the placebo group’s 1.6% reduction. Notably, 40% of patients in the treatment group achieved at least a 5% weight reduction, 27% saw a 6% reduction, and 19% reached a 7% reduction. These results suggest an additive and synergistic effect of the two drugs. InvestingPro analysis reveals that while Palatin holds more cash than debt on its balance sheet, the company is quickly burning through its cash reserves, a critical factor for investors monitoring clinical-stage biotech companies.
The study enrolled 113 patients, who were initially treated with tirzepatide alone to confirm eligibility. They were then randomly assigned to one of four groups: the co-administration of MC4R agonist bremelanotide and GLP-1/GIP tirzepatide, tirzepatide alone, bremelanotide alone, or placebo.
Following the discontinuation of treatment, more than half of the weight lost was regained within two weeks, a common outcome with GLP-1/GIP therapy. However, the bremelanotide group showed a halt in weight regain, suggesting its potential in maintaining weight loss post-treatment. Safety and tolerability concerns did not increase with the co-administration of the drugs.
Palatin is continuing to analyze the data, including body composition and BMI, and plans to present complete results at an upcoming medical conference. The company is also advancing the development of next-generation MC4R agonist peptides and oral small molecule compounds. IND applications for these new therapies are expected to be filed in the fourth quarter of 2025, with clinical data anticipated in the first half of 2026. Investors should note that Palatin’s next earnings report is scheduled for May 20, 2025, where analysts will likely focus on the company’s development pipeline progress and cash runway. For deeper insights into Palatin’s financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, which includes 12 additional ProTips and extensive financial metrics.
The information in this article is based on a press release statement from Palatin Technologies, Inc.
In other recent news, Palatin Technologies reported its Q2 FY2025 earnings, revealing an earnings per share (EPS) of -0.12, significantly outperforming the forecasted -0.51. Despite reporting zero revenue for the quarter, the company’s financial results showed improvement, with a net loss reduced to $2.4 million from $7.8 million in the previous year. Palatin also announced encouraging results from its Phase 2 trial of PL8177 for ulcerative colitis, with 33% of patients achieving clinical remission. Additionally, Palatin received orphan drug designation from the FDA for PL7737, targeting leptin receptor deficiency obesity, providing potential market exclusivity and other incentives. The company is actively engaged in discussions with potential partners for its ulcerative colitis program, aiming to out-license this promising asset. Palatin’s strategic focus on obesity treatments continues, with plans to advance its programs into clinical studies by 2025. The company raised $4.3 million through an equity offering, bolstering its cash reserves. These developments highlight Palatin’s ongoing efforts to innovate and form strategic partnerships in the biopharmaceutical sector.
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