PTN

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is prioritizing a 'best-in-class' strategy for its melanocortin-4 receptor (MC4R) obesity pipeline, focusing on improving tolerability and usability to support long-term patient adherence. The company is leveraging recent advancements in receptor ligand interactions to design candidates with significantly higher MC4R selectivity and minimal MC1R activity. A strategic decision was made to advance next-generation candidates over the earlier PL7737 compound to ensure the clinical pipeline meets stringent 'best-in-class' criteria. The operational focus is on rare syndromic and genetic obesity disorders, such as hypothalamic obesity and Prader-Willi syndrome, where chronic treatment requires a superior safety profile. Management continues to utilize its broader melanocortin platform to generate nondilutive capital through strategic partnerships, such as those with Boehringer Ingelheim and Altanispac Labs. The company believes its extensive experience in melanocortin-4 receptor selective agonists uniquely positions it to overcome the limitations of first-generation therapies currently on the market. The once-weekly MC4R selective peptide agonist remains on track for an Investigational New Drug (IND) application submission in the fourth quarter of calendar 2026. Next-generation oral small molecule candidates are expected to reach IND submission in the first half of calendar 2027, following final candidate selection later in 2026. Existing cash resources and expected receivables are projected to fund operations through June 30, 2027, based on current development plans and the ability to manage expense timing. Future clinical development for oral compounds will follow a similar path to previous programs, targeting hypothalamic obesity and Prader-Willi syndrome patients. Management anticipates that upcoming IND-enabling studies will confirm the potential to drastically reduce or eliminate hyperpigmentation through superior receptor selectivity. Discontinuation of PL7737 development in favor of backup compounds that demonstrated a superior profile, specifically regarding the near-elimination of MCR1 activity. Recognition of $3.9 million in collaboration and license revenue, primarily from the Altanispac agreement, compared to no revenue in the prior year period. Receipt of EUR 7.5 million in upfront and milestone payments from the Boehringer Ingelheim partnership during the second half of calendar 2025. The PL-8177 ulcerative colitis program is currently positioned for potential partnering following positive Phase II proof-of-concept results. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained the decision was multifactorial, driven by the desire to be best-in-class rather than just first to market. Newer backup compounds showed profiles 'verging on almost the elimination of MCR1 activity,' which PL7737 could not match. Resources were diverted to ensure clinical investments are only made in compounds with the highest degree of selectivity and drug-like characteristics. Management noted that while competitors have first-generation products approved, those products have limitations like daily injections and hyperpigmentation side effects. Palatin aims to deliver 'cleaner' compounds with better PK parameters and once-weekly delivery to capture market share through better patient compliance. The CEO acknowledged being several years behind in certain indications but emphasized that the quality of the candidate is more important for long-term market determination. The goal is to potentially eliminate hyperpigmentation entirely by achieving a very significant separation between MC4R and MC1R activity. Management believes preclinical models showing lack of fur darkening in animals will translate to a lack of pigmentation changes in humans. The company is currently entering IND-enabling studies, including in vitro assays and animal work, to document this selectivity for the FDA.

This article first appeared on GuruFocus. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Palatin Technologies Inc (PTN) reported $3.9 million in collaboration and license revenue for the third quarter, a significant increase from no revenue in the prior-year period. The company reduced its net cash used in operations to $4.4 million, down from $5.4 million in the previous year, primarily due to recognized collaboration and license revenue. Palatin Technologies Inc (PTN) has a strong cash position with $10.2 million in cash and cash equivalents, and $2.2 million in expected receivables, sufficient to fund operations through June 30, 2027. The company is advancing its melanocortin-4 receptor agonist therapies for rare obesity disorders, with a focus on improving tolerability and usability for long-term treatment. Palatin Technologies Inc (PTN) has strategic partnerships, such as with Orangel Ingelheim for retinal diseases, providing non-dilutive capital and potential long-term royalty participation. Total operating expenses increased to $5.5 million from $4.8 million in the prior year, driven by higher compensation costs and professional fees. The company reported a net loss of $1.4 million for the third quarter, although this was an improvement from a $4.8 million loss in the prior year. Palatin Technologies Inc (PTN) is not the first to market in its space, facing potential competition and the need to ensure its compounds are best-in-class. The development of the oral small molecule program has been delayed, with the next-generation candidates expected to be IND-ready in the first half of 2027. The company discontinued the development of PL-7737 due to concerns about its selectivity and dosing, opting to focus on backup compounds with better profiles. Warning! GuruFocus has detected 5 Warning Signs with PTN. Is PTN fairly valued? Test your thesis with our free DCF calculator. Q: Just recapping on PL-7737, is that molecule now discontinued? And if so, was it due to an issue with PL-7737, or did some of the backup compounds present a better profile to take going forward? A: Dr. Carl Spana, CEO and President: The decision to discontinue PL-7737 was multifactorial. We aim for best-in-class compounds, and PL-7737 did not meet our stringent selectivity and dosing criteria. Backup compounds showed better profiles, nearly eliminating MTRO1 activity. We decided to focus resources on more promising candidates. Q: In the next generation oral small molecule compound, would you expect to have a similar clinical game plan as you did for PL-7737? A: Dr. Carl Spana, CEO and President: Yes, the next-generation compounds will follow a similar path, targeting hypothalamic obesity and Prader-Willi syndrome. We expect these compounds to have no MC1R activity, making them cleaner and more competitive. Q: How would you compare your products to those of Rhythm, and how far behind do you consider yourself at this point? A: Dr. Carl Spana, CEO and President: Rhythm's product is a first-generation peptide with limitations like MC1R activity and daily injections. We aim to deliver cleaner compounds with better drug-like characteristics. While we are several years behind in some indications, we focus on bringing better candidates to market. Q: Your oral compound is pushed out roughly a year. Do you see any challenges to have that become R&D ready next year? A: Dr. Carl Spana, CEO and President: We have a good handle on the requirements and are confident in delivering a compound. However, until preclinical studies are complete, we can't predict the exact outcome. Some candidates are in animal studies, and a final selection will be made later this year. Q: For the sub-Q weekly peptides, was there any issue causing the delay to the fourth quarter? A: Dr. Carl Spana, CEO and President: There are no issues. We want to ensure we have the best candidate. The funding allowed us to accelerate work on chemistry, and we are now entering IND-enabling studies. The program is on track and progressing well. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Advancing MC4R-based obesity programs for rare obesity disorders with a focus on improved tolerability and long-term use, and key IND submissions targeted in calendar 2026 and 2027 Programs target rare obesity disorders linked to the MC4R pathway, including hypothalamic obesity, Prader-Willi syndrome, and Bardet-Biedl syndrome Once-weekly injectable MC4R selective peptide agonist remains on track for an IND submission in the fourth quarter of calendar 2026 Oral MC4R selective agonist program is advancing, with a next-generation oral candidate targeted for IND submission in the first half of calendar 2027 Focus is on developing best-in-class MC4R candidates designed to enhance potency, improve tolerability, reduce off-target effects, including those associated with hyperpigmentation, and support safe and effective long-term use Conference call and webcast scheduled for May 13, 2026, at 11:00 a.m. ET PRINCETON, N.J., May 13, 2026 /PRNewswire/ -- Palatin Technologies, Inc. (NYSE American: PTN), a biopharmaceutical company developing medicines that target the melanocortin receptor (MCR) system, today announced financial results for its fiscal third quarter ended March 31, 2026, and provided a business update. "Our goal is to develop best-in-class MC4R agonists. To support this, we have made significant advancements in improving MC4R selectivity and reducing MC1R activity, resulting in highly selective MC4R lead candidates," said Carl Spana, Ph.D., President and Chief Executive Officer of Palatin Technologies. "Our once-weekly MC4R selective peptide agonist program remains on track for an IND submission in the fourth quarter of calendar 2026. In our oral MC4R selective agonist program, we have used data from PL7737 and broader program insights to develop next-generation highly selective MC4R candidates, targeting an IND submission for the first half of calendar 2027." Dr. Spana continued, "Available therapies for rare obesity disorders often present challenges for long-term use. We have leveraged our extensive experience in the design of MC4R selective agonists, along with advancements in our understanding of receptor-ligand interactions, to develop optimized candidates. Our once-weekly injectable peptide lead and next-generation oral small molecule candidates are highly selective for MC4R, which we believe could result in a meaningful reduction in off-target effects associated with MC1R activity, with the potential to eliminate hyperpigmentation. Our next-generation oral small molecule candidates, informed by insights from earlier compounds including PL7737, also demonstrate improved potency. These attributes could translate into improved long-term tolerability, usability, and patient adherence." Obesity Program Update Palatin's obesity program is focused on MC4R selective agonists designed to enhance efficacy while improving tolerability and long-term usability. Planned development and clinical studies will focus on advancing both a long-acting peptide and an oral small-molecule MC4R selective agonist for the treatment of hypothalamic obesity, Prader-Willi syndrome, and Bardet-Biedl syndrome, addressing populations with significant unmet medical need. Next-generation peptide MC4R selective agonists: Designed as a once-weekly injection. Preclinical data support sustained efficacy with repeat dosing and a tolerability profile designed to minimize and potentially eliminate hyperpigmentation through greater receptor selectivity. Investigational New Drug (IND) submission and initiation of a Phase 1 single- and multiple-ascending dose (SAD/MAD) trial remains on track for the fourth quarter of calendar year 2026. Oral MC4R selective agonists: Palatin is advancing next-generation oral small molecule MC4R selective agonist candidates based on data and learnings from earlier compounds, including PL7737, and broader program insights. In internal preclinical models, these candidates demonstrate improved MC4R selectivity relative to earlier compounds, supporting the potential for enhanced potency and tolerability, including a meaningful reduction in MC1R-mediated off-target effects, with the potential to eliminate hyperpigmentation. IND submission and initiation of a Phase 1 SAD/MAD trial for a next-generation oral MC4R selective agonist candidate is targeted for the first half of calendar year 2027. Partnering and Out-Licensing Update Retinal diseases (MCR agonists) – Partnership with Boehringer Ingelheim, providing non-dilutive capital and potential future milestone and royalty payments. Received an upfront payment and research milestone totaling €7.5 million ($8.8 million), in the second half of calendar year 2025. Eligible to receive payments for development, regulatory, and commercial milestones, in addition to tiered royalties on net sales. PL9643 (MC1R agonist) - Dry Eye Disease – Sublicensing agreement with Altanispac Labs, providing non-dilutive capital while preserving potential future payments and royalty economics. Received $3.8 million in upfront consideration in January 2026, strengthening the Company's balance sheet. Eligible to receive additional future payments under the sublicensing agreement, including asset disposition, as well as royalties on net sales. PL8177 (MCR agonist) - Ulcerative Colitis – Available for potential partnering following positive Phase 2 proof-of-concept results. Delivered positive Phase 2 proof-of-concept results, supporting the therapeutic potential of the program. Active out-licensing discussions are underway, reflecting interest in the asset's clinical data and potential commercial opportunity. Diabetic nephropathy (MCR agonists) – Positive Phase 2 open-label data support continued partnering discussions. Reported positive Phase 2 open-label results, supporting the therapeutic potential of the program. Ongoing out-licensing discussions continue to explore strategic pathways to maximize the value of the asset. Fiscal Third Quarter Ended March 31, 2026, Financial Results Revenue For the third quarter ended March 31, 2026, Palatin recognized $3.9 million in collaboration and license revenue compared to no revenue for the comparable prior-year period. The increase was primarily related to the revenue recognition of the upfront consideration under the Altanispac Agreement. Operating Expenses Total operating expenses were $5.5 million, compared to $4.8 million in the prior year period, net of a $0.4 million gain on purchase commitment. The increase was mainly due to higher compensation costs and professional fees during the quarter ended March 31, 2026. Other Income / (Expense) Total other income, net, was $0.1 million, compared with less than $0.1 million in the prior year period. The increase was mainly due to higher investment income, partially offset by foreign currency transaction losses and reduced interest expense. Cash Flows Net cash used in operations was $4.4 million, compared to $5.4 million in the prior year period. The decrease was mainly due to a decrease in net loss relating to the collaboration and license revenue recognized during the quarter offset by working capital changes. Net Loss Palatin reported a net loss for the third quarter ended March 31, 2026, of $1.4 million, or $(0.37) per basic and diluted common share, compared to a net loss of $4.8 million, or $(9.13) per basic and diluted common share, for the comparable quarter last year. The reduced net loss for the quarter ended March 31, 2026, was mainly due to collaboration and license revenue recognized during the quarter. Cash Position As of March 31, 2026, cash and cash equivalents were $10.2 million, with $2.2 million of other receivables, which is expected to be received during the quarter ending June 30, 2026. Based on the Company's current operating and development plans, and the ability to manage the timing of certain operating expenses, the Company believes its existing cash and cash equivalents and expected other receivables will be sufficient to fund operations through June 30, 2027. Conference Call / Webcast Palatin will host a conference call and audio webcast on May 13, 2026, at 11:00 a.m. ET to discuss the results of operations in greater detail and provide an update on corporate developments. To listen to the live conference call, dial 1-888-506-0062 (US) or 1-973-528-0011 (International), Participant Access Code: 405313. The audio webcast and replay can be accessed by logging on to the "Investor-Webcasts" section of Palatin's website at http://www.palatin.com. A telephone and audio webcast replay will be available one hour after the completion of the call. To access the telephone replay, dial 1-877-481-4010 (US) or 1-919-882-2331 (International), Replay Passcode 54002. The webcast and telephone replay will be available through May 27, 2026. Role of MC4R Agonists Effect in Obesity Hypothalamic neurons expressing the melanocortin-4 receptor (MC4R) play a central role in regulating stored energy, food intake, and body weight. When the MC4R pathway signaling is impaired, patients can experience severe hunger, lower energy use, and early onset obesity. MC4R agonism represents a validated and attractive target for the development of therapies to treat obesity, particularly in disorders driven by dysfunction of the melanocortin pathway. About Hypothalamic Obesity Hypothalamic obesity (HO) is a rare and severe form of obesity caused by dysfunction or damage to the hypothalamus, the region of the brain that regulates appetite, satiety, and energy balance. HO 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 and developmental abnormalities affecting hypothalamic function. Individuals with HO typically experience rapid weight gain, intense hunger, and serious metabolic problems that are resistant to conventional diet, exercise, and behavioral interventions. Although therapeutic options have recently emerged, HO remains a condition with significant unmet medical need, particularly with respect to long-term efficacy, tolerability, and patient management. About Prader-Willi Syndrome Prader-Willi syndrome (PWS) is a rare, complex genetic neurodevelopmental disorder caused by the loss of function of specific genes on chromosome 15. The condition is characterized by hyperphagia, impaired satiety, developmental delays, reduced muscle tone, endocrine abnormalities, and behavioral challenges. Individuals with PWS typically develop an intense and persistent drive to eat, beginning in early childhood, which can lead to severe obesity and related metabolic complications if not strictly managed. Current treatment approaches focus primarily on symptom management, including nutritional supervision, behavioral interventions, and growth hormone therapy. While new drug therapies are emerging, there remains significant unmet need, particularly in addressing hyperphagia and improving long-term tolerability and patient adherence. About Bardet-Biedl Syndrome Bardet-Biedl syndrome (BBS) is a rare genetic disorder characterized by early-onset obesity, hyperphagia, retinal degeneration, renal abnormalities, and developmental and cognitive impairment. Obesity in BBS is driven, in part, by dysfunction in the melanocortin signaling pathway, leading to impaired satiety and increased food intake. Individuals with BBS often experience significant, early weight gain and associated metabolic complications that are difficult to manage with conventional interventions. While targeted therapies have recently been approved, BBS remains a serious and lifelong condition with ongoing unmet need, particularly with respect to treatment tolerability, durability of treatment benefit, and overall patient quality of life. About Melanocortin Receptor Agonists The melanocortin receptor ("MCR") system has effects on inflammation, immune system responses, metabolism, food intake, and sexual function. There are five melanocortin receptors, MC1R through MC5R. Modulation of these receptors, through use of receptor-specific agonists, which activate receptor function, or receptor-specific antagonists, which block receptor function, can have medically significant pharmacological effects. About Palatin Palatin is a biopharmaceutical company developing medicines that target the melanocortin receptor system with targeted, receptor-specific product candidates for the treatment of diseases with significant unmet medical need and commercial potential. Palatin's strategy is to develop products and then form marketing collaborations with industry leaders to maximize their commercial potential. For more information, visit the company's website at www.palatin.com and follow us on X, formerly Twitter, @PalatinTech. Forward-looking Statements Statements in this press release that are not historical facts, including statements about future expectations of Palatin Technologies, Inc., such as statements about Palatin products in development, clinical trial results, potential actions by regulatory agencies, regulatory plans, development programs, proposed indications for product candidates, and market potential for product candidates are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and as that term is defined in the Private Securities Litigation Reform Act of 1995. Palatin intends that such forward-looking statements be subject to the safe harbors created thereby. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause Palatin's actual results to be materially different from its historical results or from any results expressed or implied by such forward-looking statements. Palatin's actual results may differ materially from those discussed in the forward-looking statements for reasons including, but not limited to, results of clinical trials, regulatory actions by the FDA and other regulatory and the need for regulatory approvals, Palatin's ability to fund development of its technology and establish and successfully complete clinical trials, the length of time and cost required to complete clinical trials and submit applications for regulatory approvals, products developed by competing pharmaceutical, biopharmaceutical and biotechnology companies, commercial acceptance of Palatin's products, and other factors discussed in Palatin's periodic filings with the Securities and Exchange Commission. Palatin is not responsible for updating events that occur after the date of this press release. Palatin Technologies® is a registered trademark of Palatin Technologies, Inc. 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Palatin Techs (AMEX:PTN) held its third-quarter earnings conference call on Wednesday. Below is the complete transcript from the call. Benzinga APIs provide real-time access to earnings call transcripts and financial data. Visit https://www.benzinga.com/apis/ to learn more. Access the full call at https://www.webcaster5.com/Webcast/Page/2953/54002 Palatin Techs reported $3.9 million in collaboration and license revenue for Q3 2026, marking an increase from no revenue in the prior year, primarily due to the Altanisbac agreement. The company recorded a net loss of $1.4 million, significantly improved from a $4.8 million net loss in the previous year, driven by increased revenue. Palatin Techs is advancing its melanocortin 4 receptor therapies for rare obesity disorders, focusing on improving tolerability and usability, with plans to submit an IND for their peptide program in Q4 2026. The company has strategic partnerships, including with Bergel Ingelheim and Altanisbac Labs, providing non-dilutive capital and future royalty opportunities. Management is confident in developing best-in-class therapies, highlighting improvements in selectivity and potency, especially in their oral small molecule program. OPERATOR Hello everyone. Welcome to Palatin's third quarter fiscal year 2026 operating results conference call. At this time, all participants are on a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press 0 on your telephone keypad. As a reminder, this conference call is being recorded. Before we begin our remarks, I would like to remind you that the statements made by Palatin are not historical facts and may be forward looking statements. These statements are based on assumptions that may or may not prove to be accurate and that the actual results may differ materially from those anticipated and due to the variety of risks and uncertainties discussed in the Company's recent filings with the Securities and Exchange Commission. Please consider such risks and uncertainties carefully in evaluating these forward looking statements by Palatin's prospects. Now I would like to turn the call over to your host, Dr. Carl Spana, President and Chief Executive Officer of Palatin. Please go ahead. Thank you. Dr. Carl Spana (President and Chief Executive Officer) Good morning and welcome to the Palatin third quarter fiscal year 2026 call. I'm Dr. Carl Spana, CEO and President of Palatin. With me on the call today is Steve Wills, Palatin's Chief Financial Officer and Chief Operating Officer. Earlier today we issued a press release reporting Palatin's financial results for the third quarter of fiscal year 2026 and are now providing a corporate update. Today we will highlight our Progress advancing our melanocortin 4 receptor based obesity pipeline review recent strategic and financial milestones and outline our priorities as we move through 2026 followed by a question and answer session. First, I will turn the call over to Steve for the financial and operating results. Steve Wills (Chief Financial Officer and Chief Operating Officer) Steve thank you Carl and hello everyone. I will briefly review our financial results for the fiscal third quarter ended March 31, 2026. Beginning with revenue for the third quarter we recognized 3.9 million in collaboration and license revenue compared to no revenue in the prior year period. The increase was primarily related to the revenue recognition of the upfront consideration under the Altanisbac agreement. Turning to operating expenses, total operating expenses for the quarter were 5.5 million compared to 4.8 million in the prior year period which included a 0.4 million gain on purchase commitment. The increase was primarily attributable to higher compensation costs and professional fees. Net cash used in operations for the quarter was 4.4 million compared to 5.4 million in the prior year period. The reduction in cash used in operations was primarily driven by collaboration and license revenue recognized during the quarter. Net loss for the third quarter of fiscal 2026 was 1.4 million or 37 cents per basic and diluted common share, compared to a Net loss of 4.8 million or $9.13 per basic and diluted common share for the prior period. The improvement in net loss was primarily related to collaboration and license revenue recognized during the quarter. Turning to our balance sheet and liquidity position, as of March 31, 2026, Peloton had cash and cash equivalents of 10.2 million, in addition to approximately 2.2 million of other receivables which are expected to be collected during the quarter ending June 30, 2026. Based on our current operating and development plans and our ability to manage the timing of certain operating expenses, we believe our existing cash resources and expected receivables will be sufficient to Fund operations through June 30, 2027. With that, I will turn the call back to Carl. Dr. Carl Spana (President and Chief Executive Officer) Carl thank you Steve. This quarter Palatin continued to execute on its strategy of advancing our melanocortin 4 receptor agonist therapies for rare obesity disorders with a focus on improving tolerability, usability and long term outcomes in chronic treatment settings. The melanocortin 4 receptor pathway is a clinically and commercially validated target. We strongly believe the next phase of innovation will be defined not just by efficacy but by improvements in overall treatment profile, particularly tolerability and patient friendly delivery to support long term patient adherence. In this context our goal is is very straightforward. This has developed best in class mitochondrial 4 receptor agonists for the treatment of rare syndromic and genetic obesity disorders. We are uniquely positioned to achieve this with our extensive experience in the design of monoclonal 4 receptor selective agonists, along with our recent advancements in the understanding of receptor ligand interactions in rare obesity disorders such as hypothalamic obesity, Prader Willi syndrome and Barde Beidal syndrome. Patients face severe hyperphagia, rapid weight gain and significant metabolic complications. These are chronic conditions that require lifelong treatment and current therapeutic options often present challenges for long term use. As a result, improving tolerability and usability is critical to achieving meaningful sustained outcomes for patients. Updating our obesity pipeline our melanocortin 4 receptor agonist peptide program is designed to achieve sustained efficacy with a treatment profile optimized for high selectivity for the melanocortin 4 receptor and ONCE weekly delivery. Our ONCE weekly melanocortin 4 receptor selective peptide Agnus remains on track for an initial new drug application submission in the fourth quarter of calendar 2026 and represents our lead clinical asset in our oral small molecule program, we are advancing Next Generation Oral melanocortin 4 receptor selective agonist candidates based on data and learnings from earlier compounds and including PL7737, recent data from our research work in medicinal chemistry and our advancements in understanding detailed receptor ligand interactions in internal preclinical studies. Our candidates demonstrate significantly improved monocortin 4 receptor selectivity with minimal monocortin 1 receptor activity and increased potency at the monocortin 4 receptor compared to earlier compounds. We believe this improved selectivity and potency will result in lower dosing requirements and a meaningful reduction in the potential elimination of hyperpigmentation. I want to emphasize the importance of the last point. Hyperpigmentation is a known class effect associated with melanocortin 1 receptor activity and remains a limitation of current therapies. Our approach is specifically designed to minimize melanocortin 1 receptor off target interactions and the selectivity data we have supports this conclusion. Our goal is to develop best in class therapies with superior efficacy and long term patient compliance. In addition to advancing our obesity programs, we continue to leverage the broader potential of our melanocortin receptor platform through strategic partnerships and business development activities. Our partnership with Bergel Ingelheim for Retinal Diseases continues to provide non dilutive capital, milestone opportunities and potential long term royalty participation. During the second half of calendar 2025 we received upfront and milestone payments totaling 7.5 million euros or approximately $8.8 million. We also completed the sublicensing of PL9643 for dry eye disease to Altanis back labs in January of 2026, receiving 3.8 million in upfront consideration while retaining the potential for future payments and royalties. In addition, RPL8177 ulcerative colitis program remains positioned for potential partnering following positive phase two proof of concept results. These transactions reflect our strategy of leveraging the breadth of our melanocortin receptor platform to generate non dilutive capital and support our pipeline advancements and create multiple potential long term value drivers for shareholders. In summary, our peptide program remains on Track for an IND submission in the fourth quarter of calendar 2026. Our oral small molecule program is advancing next generation candidates with improved selectivity and potency toward an IND. In the first half of calendar 2027, we have developed new intellectual property around melanocortin 4 receptor selectivity and we are continuing to leverage both our vast experience and new data to design monocortin 4 receptive therapies with improved selectivity and Overall better treatment profiles. We believe this strategy positions palatin to deliver differentiated best in class melanocortin 4 receptor agonists therapies for patients with significant unmet medical need. With that, we will now open the call to questions. OPERATOR Certainly the floor is now open for questions. If you have any questions or comments, please press Star one on your phone at this time. We ask that while posing your question. You please pick up your handset if listening on a speakerphone to provide optimum sound quality. Please hold for just a few moments while we pull for questions. Your first question is coming from Scott Henry with agp. Please pose your question. Your line is live. Scott Henry (Analyst) Thank you and good morning. Just recapping on PL7737. Is that molecule now discontinued? And if so, was it due to an issue with PL7737 or did some of the backup compounds present a better profile to take going forward? Thank you. Dr. Carl Spana (President and Chief Executive Officer) Thanks for the question, Scott. You know, we're not going to be first to market in this space, so we really want to make sure we have best in class compounds. So our, you know, selectivity, our parameters for selecting a compound or continuing a compound to go through development into the clinic is pretty stringent. So it's kind of the decision was really multifactorial, as we were running through the PL7737 development, we came to a point where we felt that the selectivity and the dosing that we wanted to achieve to be best in class, we didn't necessarily think that the compound would meet that. In addition to that, we were seeing, since we were funded in November of last year, we were able to really push some of these backup compounds forward. And we started to see compounds that really are verging on almost the elimination of MCR1 activity. So their profiles are just coming out just better than where 7737 is. And so we had to make the decision on do we continue to put resources into a compound that may not be best in class or do we divert those to the peptide, which is really highly selective once a week and has a really excellent profile, and then bring along a second generation compound that really has got a much better profile. So it was a combination of a number of factors that went in. And we also have to consider that this is a target that is you're growing in interest and there's potential competition. So when we are making final decisions to go in the clinic and start spending lots of investor money, we really want to make sure that it's a very stringent decision and that the compounds that we take forward really meet a high degree of selectivity for MCR4 have excellent drug like characteristics, are easier for the patients to use whether it be oral or once weekly. And so there were a lot of factors that went into it, into decision and 7737 is still extremely valuable to the company. We've learned a tremendous amount from it, we're still evaluating it and we'll continue to be supportive of everything that we're doing. Scott Henry (Analyst) Okay. In the next generation oral small molecule compound, would you expect to have a similar clinical game plan as you did for PL7737 as far as looking at hypothalamic obesity patients as well as Prader Willi? Dr. Carl Spana (President and Chief Executive Officer) Absolutely. It'll follow a similar path. I think that the peptides and the oral small molecules will each have their place in treating these patients based on patient preferences, efficacy, side effect profiles. But the next generation compounds really we're seeing, I expect that these compounds really won't have any MC1R activity at all. They're going to be quite clean and I think that's going to be a major advancement. And you know, we have to again we have to keep in mind that you know, this is going to be a competitive field and we really want to make sure we're bringing the best that we can deliver, you know, based on the experience that Scott Henry (Analyst) Okay, and when you think about the differentiation of your pipeline with compounds on the market and under development, what do you think are the key attributes that separate your pipeline? I mean, obviously you mentioned selectivity and hyperpigmentation. Are there any other aspects that you would highlight? Dr. Carl Spana (President and Chief Executive Officer) Sure. I mean, I mean that's, that's a key aspect. I think the technologies that we use for potentially delivering once a week injections for peptides can be differentiating as well. I think the understanding that, you know, the pharmacokinetic parameters, these compounds have to put them in a range where we don't need to go to, you know, levels of drug exposure that exceed the therapeutic window so that we can eliminate or drastically reduce the potential side effects that you can see outside of hyperpigmentation. In addition to that, in the small molecule program, you know, we're looking for compounds that really limit the brain penetrance so that they don't get into the cns. So there are a number of things that are built into these things that overall will make them better drugs. And this is not atypical. As indications move from first approved drugs, it's generally when you get to that second or third one where you get the better compounds coming through, better drug like characteristics, better pharmacokinetic parameters, more usability for the patient and that's what we're aiming for. Scott Henry (Analyst) Okay, great. And kind of the final question, obviously your game plan has followed a lot of what we've seen with rhythm and what they've done. How would you compare your products to those of Rhythm and how far behind do you consider yourself at this point? Dr. Carl Spana (President and Chief Executive Officer) Sure. So currently from an approved standpoint is Set Melanotide or Imcivree, Rhythm's product and by Frank Neil. They've done a tremendous job bringing that product forward, expanding its indications and potentially beginning to build new markets for MTR4 agonists. That's a first generation peptide that's got limitations with regards to MC1R activity and it's a daily injectable. I know that they have a weekly injectable that's coming behind that. There's very little data. I can't comment on that. There's no data available. I think there will be data later in the quarter, but I can't comment on that. They have a small molecule in Bevamelagon. Again it's a first generation compound. Again we see hyperpigmentation in the, in the clinic and it's going through some reformulation work and I don't know where that's going to lead. They're going to hopefully get that back in the clinic later in the year. So I think, you know, from my perspective, I think that we're going to deliver better compounds. These are going to be cleaner. Are these going to have better drug like characteristics and have better PK parameters and chance to be highly competitive and expand and take market share and that's the goal in bringing the best in class forward. Right. Just have the better compounds. From how far behind are you? Depending on the indication obviously set. Melanotide is approved, it's approved for ho. It's approved for a number of indications. So you can look at our plan to get there. In that case we're several years behind with regards to compounds coming through. I don't. Is it a year, year and a half? I mean I'm not clear. I know it's a question that investors always ask and there's relative there. We're not all that far behind and you're coming and you're trying to come in with a better candidate and a better product and I think that's the more important part. You know who's going to have the. Who's going to have the compounds that really help to solve this issue with better patient compliance and better patient usability, maintaining good efficacy. And that's really what you're trying to drive forward. And that's really, at the end of the day, what's going to probably determine this market. Scott Henry (Analyst) Okay, great. Thank you for taking the questions. OPERATOR Your next question is coming from Yell Jen with Laidlaw and company. Please pose your question. Your mind is live. Yell Jen (Analyst) Good morning and thanks for taking the questions. Your oral compound, now it's push out probably roughly a year compared to 7737. My question to you is that what is, do you see any challenges to have that become R and D ready next year? So specific, any specific you can mention without, you know, reveal too much on the competitive side? Dr. Carl Spana (President and Chief Executive Officer) Sure. Look, whenever you're dealing with orally active small molecules, you know, we run, as we did with 7737, we run a tremendous amount of preclinical studies on these compounds to evaluate not only their efficacy and their selectivity, but really their drugability, side effect profiles, metabolism, all sorts of other things. At any point, you know, the predictability, even though we use, you know, state of the art, you know, software and what have you to help predict and obviously wet chemistry to go through all this stuff, you know, until you get into animals, until you get through that process, you know, you're not going to really know what you have and you know, how high you can dose and so on and so forth. So I would characterize it as we have a very good handle on what's required. I think we understand the pharmacophores that we're dealing with very well. They are very druggable and with regards to their interactions with SIPs and their metabolism and so on and so forth. So we have a high degree of confidence that we can deliver a compound. But until we get through the work, I can't tell you what the actual outcome was going to be. So I mean, I mean we will, I'm confident that we will do the work, we will get the candidate forward, we'll go through the process with the candidate and I'm confident that it will pass and we'll have a great profile. But until it's done, I can't, you know, I can't, I can't comment. I don't know. Yell Jen (Analyst) Okay, fair enough. That's very helpful. Without revealing too much, should I think about this? It's heading to animal study or it's already in, you know, an animal study? Dr. Carl Spana (President and Chief Executive Officer) It depends on the I mean, we have made a final selection. So it depends on the candidate. Some are in animal studies, some are a little further back. We'll make a little bit later in the year, we'll make a final selection on the actual candidate that we want to go forward with. So it varies depending on the candidate. Yell Jen (Analyst) Okay. So still. Okay, great. Maybe the last question here is that for the sub Q weekly peptides that you are slightly ahead. I mean, I saw the last time we thought that you may start it in the third quarter, but I guess it's slightly more pushed out to a four. Was there any issues or you want to resolve? It seems like you said will be the new product. Dr. Carl Spana (President and Chief Executive Officer) No issues. I mean, I mean, listen, we're. Not manufacturing screws here. We're doing very complex things and we want to make sure again that we have the right compound. One of the things that we're seeing is with the ability, with the funding that we did in the third or fourth quarter of last year, that really allowed us to really accelerate a lot of the work we were doing on the medicinal chemistry side with both the peptides and the small molecules. Trying to make sure is we're taking on the peptide side in the candidate we selected. We want to make sure it was the best we have. Right. Not something, you know, not something that's really good. But when we find out a month later we've got something better. So it's really an issue of making sure we've got the right candidate in a nice way. We are very productive in our understanding of this, of the receptor and the receptor ligand interactions. And we've been really pushing the boundaries in understanding how to eliminate the MCR1 activity and building that into these compounds. So we really want to make sure we pick the best one. So I don't really see much difference. That peptide program to me is moving along quite nicely. I think we have an excellent candidate and we'll be running through. I mean, we're actually now entering in the IND enabling studies. So I see that moving along and staying on track quite nicely. Yell Jen (Analyst) Okay, great. Maybe the last question just squeeze in, which is that you mentioned about also you're contemplating the PwC Pratt Willi Syndrome at this point. Would that be second priority to HO or you feel that you may jump the gun into the PWC even faster or earlier? Dr. Carl Spana (President and Chief Executive Officer) Again, Jenna, everything is based on resources. I think that they're equal. I mean, they're both excellent commercial activities. They're both ones where there's an extremely high medical need for innovative treatments. So Given resources, we'd like to move them in parallel. Yell Jen (Analyst) Okay, great. Thanks a lot and good luck for everything. Dr. Carl Spana (President and Chief Executive Officer) Thank you. OPERATOR Your next question is coming from Dev Persad with Loop Capital. Please pose your question. Your line is live. Dev Persad (Analyst) Hi team. Thanks for taking a question. I have a few. One is the goal with the new oral compound is the goal is to eliminate hyperpigmentation entirely or your trying to reduce the frequency and severity and follow up, is that what preclinical species or model is the most predictive for these MC1R mediated hyperpigmentation? And then on one weekly injectable. Just wondering what are the key IND enabling studies still remaining before the Plan 4Q IND submission? Thank you. Dr. Carl Spana (President and Chief Executive Officer) All right, a lot there. So let's go through for the small molecule. I mean, what we're seeing is the potential to eliminate activity. That doesn't mean that when you go in and you start treating chronically that you won't see some small amount. But that's really what the goal is and that's what we're seeing preclinically, really a very significant separation between 1 and 4 and. But until, you know, you get into the clinic, you're not going to know. You're not going to know the animal models that we use. So you know animals, if you look at a rat, a dog or mouse, their skin is not really pigmented. So you have to look at fur, you look at fur darkening and there are a number of models that you use for that. When you're seeing, you know, if your compounds have good MCR1 activity and they work in these models, you're going to see that translate to humans. So we think there's a high degree of predictability and if you're showing lack of efficacy or very large separations between where you see weight loss and then where you see potential for even a small change in pigmentation, that that's going to translate to the human condition as well. So with regards to where we are in development right now, we're beginning the IND enabling studies that's going to include a whole bunch of in vitro assays that we're required to do with regards to SIP binding, metabolism and so on and so forth, as well as getting into the animal work, that will start as well. So we have everything moving and coming together so that we will have the documentation we need to file with the FDA and open up an IND in the fourth quarter of the year. Dev Persad (Analyst) Great, thank you. OPERATOR There are no more questions in queue at this time. I would now like to turn the call back over to Carl Spana for any closing remarks. Dr. Carl Spana (President and Chief Executive Officer) So I'd like to thank everyone for their participation on the call. You know, there's an opportunity for us to give you updates, and we're quite excited about where we are, where we're going. I thank the analysts for their questions that allow us opportunities to maybe speak a little bit beyond what we have in the script and maybe give a little more color and context to what we're doing. I think that the advances that we're making are quite significant. We're generating some very good IP that I think is going to not only support the work that we're doing, but make it a little more difficult for those that are following behind as well. So I think we're very well positioned and feel pretty confident about what we're doing and going forward that we can deliver some really phenomenal compounds into the clinic with that. Thank you, guys. Have a great day and we look forward to keeping everybody updated as we continue to make progress on our programs. Steve, Steve Wills (Chief Financial Officer and Chief Operating Officer) thanks. Also have a great rest of the day. OPERATOR Take care. Thank you, everyone. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. This article Transcript: Palatin Techs Q3 2026 Earnings Conference Call originally appeared on Benzinga.com ﾩ 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Management is sharpening its strategic focus on rare neuroendocrine obesity disorders, specifically targeting hypothalamic obesity and Prader-Willi syndrome to address high unmet medical needs. The company successfully regained NYSE American listing compliance following an $18.2 million public offering, restoring market liquidity and institutional visibility. Operational expenses increased year-over-year due to the absence of a prior-year divestiture gain and intensified investment in the melanocortin-4 receptor (MC4R) obesity pipeline. The sublicensing of dry eye candidate PL9643 provided $3.8 million in debt cancellation, allowing the company to offload non-core development costs while retaining future royalty upside. Product differentiation is centered on a 'tolerability-first' design, utilizing selective MC4R agonists to minimize hyperpigmentation and gastrointestinal side effects common in existing therapies. Management is positioning its assets as complementary to GLP-1 therapies, anticipating a future market shift toward combination regimens for chronic weight management. The company expects its current cash runway to support operations through the quarter ending March 31, 2027, providing a stable window for clinical execution. Submission of an IND for lead oral candidate PL-7737 is scheduled for the first half of calendar 2026, followed by a Phase I trial to establish safety and dosing windows. A second IND for a once-weekly subcutaneous peptide agonist is planned for the second half of 2026, targeting higher efficacy profiles than small-molecule alternatives. Phase II/III registration studies in specific rare disease populations are not expected to commence until mid-2027, following the readout of Phase I safety and target engagement data. Future guidance assumes a reduction in quarterly operating expenses by approximately $2.5 million as one-time professional fees and cleanup costs from the recent financing subside. The $18.2 million capital raise included Series J warrants that could provide an additional $18.2 million, though management cautioned there is no assurance of their exercise. A $3.8 million upfront consideration from the Altanispac Labs deal was recorded as a liability in Q2 and will be recognized as license revenue in the quarter ending March 31, 2026. Management noted that while preclinical data supports the potential of targeting melanocortin-4 receptors across both rare and select broader obesity indications, their primary focus will remain on rare neuroendocrine disorders such as hypothalamic obesity and Prader-Willi syndrome. The company noted that MC4R mechanisms show good translatability from small efficacy studies to larger ones, and they are designing their compounds to enhance patient tolerability and minimize off-target effects to support long-term treatment success. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management explained that PL-7737 is designed for high selectivity for MC4R over MCR1 to substantially reduce hyperpigmentation risks. Gastrointestinal side effects are managed by controlling absorption rates to avoid the large plasma spikes that typically trigger nausea. Phase I SAD/MAD studies will use healthy obese patients to confirm oral bioavailability and define the dosing window. While safety is the primary goal, the 20-day MAD portion will look for signals in food intake reduction and body mass to confirm target engagement. Management views the oral small molecule and weekly peptide as complementary, noting that peptides generally drive higher efficacy while orals offer better patient convenience. Because rare neuroendocrine conditions are chronic, management believes multiple delivery options are necessary for long-term patient maintenance. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

This article first appeared on GuruFocus. Revenue: $116,000 for the quarter, related to cost reimbursement under collaboration agreement with Boehringer Ingelheim. Operating Expenses: $7.4 million for the quarter, increased from $2.6 million in the prior year period. Net Loss: $7.3 million or $2.86 per share, compared to a net loss of $2.4 million or $5.92 per share in the prior year period. Net Cash Used in Operations: $4.8 million for the quarter, consistent with the same quarter last year. Cash and Cash Equivalents: $14.5 million as of December 31, 2025, compared to $1.3 million on September 30, 2025. Public Offering Proceeds: Gross proceeds of approximately $18.2 million, with net proceeds of approximately $16.9 million. PL9643 Sublicensing Transaction: Received approximately $3.8 million in upfront consideration in January 2026. Warning! GuruFocus has detected 5 Warning Signs with PTN. Is PTN fairly valued? Test your thesis with our free DCF calculator. Release Date: February 17, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Palatin Technologies Inc (PTN) successfully completed an $18.2 million public offering, strengthening its balance sheet and restoring its NYSE American listing. The company is advancing its melanocortin-4 receptor-based obesity pipeline, targeting rare neuroendocrine obesity disorders such as hypothalamic obesity and Prader-Willi syndrome. Palatin Technologies Inc (PTN) has a cash runway extending beyond March 31, 2027, providing financial stability for ongoing projects. The company received $3.8 million in upfront consideration from the sublicensing of PL9643, enhancing its focus on core obesity programs. Palatin Technologies Inc (PTN) is exploring the potential for coadministration of melanocortin-4 receptor agonists with GLP-1-based therapeutics, offering flexibility in evolving obesity treatment paradigms. Palatin Technologies Inc (PTN) reported a net loss of $7.3 million for the second quarter, a significant increase from the $2.4 million loss in the same period last year. Operating expenses rose to $7.4 million, up from $2.6 million in the prior year, due to higher investment in obesity development programs and increased compensation costs. Revenue for the quarter was only $116,000, reflecting limited income from cost reimbursement under a collaboration agreement. There is no assurance that the Series J warrants from the recent public offering will be exercised, potentially limiting additional capital inflow. The company faces risks and uncertainties related to the development and approval of its obesity treatments, which could impact future performance. Q: What preclinical or translational signals give you confidence in PL7737's differentiation, particularly around tolerability? A: Carl Spana, President and CEO, explained that PL7737 is designed to be more selective for the melanocortin-4 receptor, reducing hyperpigmentation. The compound controls potential GI side effects by slowing absorption, preventing large spikes that can enhance these effects. Q: How are you approaching patient selection and endpoints for the Phase I SAD, MAD trial? Is there an increased focus on Prader-Willi syndrome? A: Carl Spana stated that the trials are primarily safety studies, focusing on confirming oral bioavailability and safety. In the MAD part, they will look for reductions in body weight and control of hyperphagia. Prader-Willi syndrome has always been a focus due to its substantial patient population. Q: How do you plan to position the oral small molecule and the once-weekly injection products? A: Carl Spana noted that both products are complementary, with the injectable potentially offering higher efficacy. Each will suit different patient populations, as these are chronic conditions requiring long-term aggressive therapy. Q: Regarding OpEx in Q2, was there any onetime noise from transactions, and how should we view OpEx in the next quarter? A: Stephen Wills, CFO, mentioned that Q2 had over $2 million in extraordinary expenses that won't recur. He expects OpEx to be approximately $2.5 million less in the next quarter. Q: How do you assess safety issues in rare syndromes, given the current approved drug's discontinuation rates? A: Carl Spana indicated that Phase I studies will provide insights into tolerability and safety. The approach aims to reduce GI side effects and hyperpigmentation, potentially resulting in lower discontinuation rates. Q: How will you assess hyperphagia and weight reduction in your studies? A: Carl Spana explained that Phase I studies will focus on target engagement and consistent PK parameters. They expect to see reductions in food intake and body mass, translating into strong signals for Prader-Willi syndrome patients. Q: How do you anticipate GLP-1 playing a role in your product development or clinical studies? A: Carl Spana stated that combining mechanisms like GLP-1 with their products could optimize therapy for severe cases. While initial development focuses on monotherapy, combination therapy is likely in the long term. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Advancing differentiated MC4R-based obesity programs into clinical development Melanocortin-based obesity therapies targeting rare MC4R pathway disorders with a primary focus on hypothalamic obesity and Prader-Willi syndrome Oral small-molecule MC4R agonist PL7737 progressing through IND-enabling toxicology studies, with IND submission and clinical trial initiation planned for the first half of 2026 Next-generation selective peptide MC4R agonists designed for once-weekly subcutaneous dosing, with IND submission and clinical trial initiation planned for the second half of 2026 Executed sublicensing of MC1R agonist PL9643 in January 2026, sharpening focus on core obesity portfolio while preserving upside Received $3.8 million in upfront consideration Eligible for future milestone payments and royalties Strengthened balance sheet through successful public financing Completed an $18.2 million public offering, including the full exercise of the over-allotment option, on November 12, 2025 Restored NYSE American listing compliance and trading, re-establishing market visibility and liquidity Teleconference and webcast to be held on February 17, 2026 at 11:00 AM ET PRINCETON, N.J., Feb. 17, 2026 /PRNewswire/ -- Palatin Technologies, Inc. (NYSE American: PTN), a biopharmaceutical company developing first-in-class medicines based on molecules that modulate the activity of the melanocortin receptor (MCR) system, today announced financial results for its fiscal second quarter ended December 31, 2025, and provided a corporate update. "Palatin continues to advance its MC4R-based obesity pipeline, with our oral small-molecule MC4R agonist, PL7737, on track to enter clinical evaluation in the first half of this year, and a long-acting peptide MC4R agonist expected to initiate clinical development in the second half of the year," said Carl Spana, Ph.D., President and Chief Executive Officer of Palatin Technologies. "As we progress these programs, we remain focused on delivering differentiated product profiles designed to enhance patient tolerability, including the potential for reduced gastrointestinal side effects, while minimizing off-target effects such as hyperpigmentation. Our preclinical data support the potential applicability of this approach across both rare and select broader obesity indications, with a particular emphasis on neuroendocrine disorders, including hypothalamic obesity and Prader-Willi syndrome. This focus underscores the differentiated nature of our melanocortin platform and our commitment to addressing areas of significant unmet medical need." "We delivered meaningful execution across our core strategic priorities, highlighted by the successful completion of our $18.2 million public offering, the resumption of trading of our common stock on the NYSE American, and the sublicensing of PL9643, an MC1R agonist Phase 3 asset for dry eye disease," continued Dr. Spana. "Entering 2026, Palatin is positioned with a strengthened balance sheet, multiple partnerships supported by defined near-term milestones, and a focused and differentiated obesity pipeline that provides a clear path toward sustainable, long-term value creation." Obesity Program Update The obesity program is focused on developing differentiated MC4R agonists designed to enhance patient tolerability, including the potential for reduced gastrointestinal side effects, while minimizing off-target effects such as hyperpigmentation. Planned clinical studies are expected to enroll and evaluate patients with hypothalamic obesity and Prader-Willi syndrome, addressing populations with significant unmet medical need. PL7737 (oral MC4R agonist): Demonstrated meaningful weight loss, oral bioavailability across relevant preclinical models. IND-enabling toxicology studies are progressing as planned, with an IND submission and initiation of a Phase 1 single- and multiple-ascending dose (SAD/MAD) trial anticipated in the first half of 2026. Next-generation selective peptide MC4R agonists: Designed for once-weekly subcutaneous dosing, with an IND submission and initiation of a Phase 1 SAD/MAD trial targeted for the second half of 2026. Out-Licensing Programs Update Retinal diseases (MCR agonists) – Collaboration with Boehringer Ingelheim, providing near-term non-dilutive capital and substantial downstream value potential. Received an upfront payment of €2.0 million ($2.3 million) in August 2025. Achieved €5.5 million ($6.5 million) research milestone in September 2025, reflecting continued program progress. Eligible 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, in addition to tiered royalties on net sales. PL9643 (MC1R agonist) - Dry Eye Disease – Sublicensing agreement with Altanispac Labs, providing near-term value, while preserving long-term participation. Received $3.8 million in upfront consideration in January 2026, strengthening the Company's balance sheet. Eligible to receive additional future payments under the sublicensing agreement, including asset disposition and commercialization milestones, as well as royalties on net sales. PL8177 (MCR agonist) - Ulcerative Colitis, advancing toward strategic partnering following clinical validation. Delivered positive Phase 2 proof-of-concept results, supporting the therapeutic potential of the program. Active out-licensing discussions are underway, reflecting interest from potential partners in the asset's clinical profile and commercial potential. Diabetic nephropathy (MCR agonists) - Building on encouraging clinical data to advance partnering opportunities. Reported positive Phase 2 open-label results, supporting the therapeutic potential of the program. Ongoing out-licensing discussions continue to explore strategic pathways to maximize the value of the asset. Corporate Update Public Offering On November 12, 2025, Palatin announced the closing of its upsized $18.2 million underwritten public offering ("Offering"), including the full exercise of the over-allotment option, consisting of 2,795,384 shares of common stock (or pre-funded warrants in lieu thereof) of the Company, together with Series J warrants to purchase up to 2,795,384 shares of common stock (or pre-funded warrants in lieu thereof), (the "Series J Warrants"), and Series K warrants to purchase up to 2,795,384 shares of common stock (or pre-funded warrants in lieu thereof), (the "Series K Warrants"), at a combined public offering price of $6.50 per share of common stock and accompanying Series J and Series K warrants (the "Offering"). Each Series J Warrant has an exercise price of $6.50 per share and will expire on the earlier of (i) the eighteen-month anniversary of the original issuance date or (ii) on the 31st calendar day following the date that the Company receives the U.S. Food and Drug Administration ("FDA") acceptance of the Company's Investigational New Drug for an in-house obesity treatment compound (oral small molecule or long-acting peptide) (the "FDA Exercise Period"). Each Series K Warrant has an exercise price of $8.125 per share and will expire on the five-year anniversary of the original issuance date, however, if a holder's Series J Warrants have not been terminated in accordance with their terms prior to the expiration of the FDA Exercise Period, such holder's Series K Warrants will automatically terminate. The gross proceeds from the Offering, before deducting the underwriting discounts and commissions and offering expenses, were approximately $18.2 million, with net proceeds amounting to $16.9 million. The Company may receive additional proceeds of up to $18.2 million upon the cash exercise of the milestone related Series J Warrants, however, there is no guarantee that such warrants will be exercised and accordingly that the Company will receive any proceeds from the exercise thereof. The Company intends to use the net proceeds from the Offering to support the development of its obesity program and for working capital and general corporate purposes. NYSE American As a result of the closing of the Offering, the Company regained compliance with NYSE American continued listing standard of the NYSE American Company Guide and all applicable requirements for continued listing on NYSE American. Effective November 12, 2025, the Company's common stock resumed trading on the NYSE American under the symbol "PTN." Fiscal Second Quarter Ended December 31, 2025, Financial Results Revenue For the second quarter ended December 31, 2025, Palatin recognized $116,036 in collaboration and license revenue compared to $0 for the comparable quarter last year. The increase in collaboration and license revenue is related to the Boehringer Ingelheim agreement which consisted of certain cost related reimbursements. Operating Expenses Total operating expenses were $7.4 million for the second quarter ended December 31, 2025, compared to $2.6 million for the comparable quarter last year. The increase in operating expenses was mainly due to the gain on the sale of Vyleesi recorded in the quarter ended December 31, 2024, which resulted in a decrease in net operating expenses, and an increase in operating expenses for the quarter ended December 31, 2025, consisting of an increase in costs on our MCR obesity development programs and higher compensation costs and professional fees. Other Income / (Expense) Total other income (expense), net was $64,687 for the second quarter ended December 31, 2025, compared to $168,841 for the comparable quarter last year. The decrease was a result of a decrease in investment income and foreign currency translation gain, offset by a decrease in interest expense incurred during the second quarter ended December 31, 2025. Cash Flows Palatin's net cash used in operations was $4.8 million for the second quarter ended December 31, 2025, and for comparable quarter last year. Net Loss Palatin reported a net loss for the second quarter ended December 31, 2025, of $7.3 million, or $(2.86) per basic and diluted common share, compared to a net loss of $2.4 million, or $(5.92) per basic and diluted common share, for the comparable quarter last year. Cash Position As of December 31, 2025, Palatin's cash and cash equivalents were $14.5 million, compared to cash and cash equivalents of $1.3 million at September 30, 2025, and $2.6 million as of June 30, 2025. Palatin currently expects a cash runway beyond the quarter ending March 31, 2027. In January 2026, as partial consideration for the rights to PL9643, the sublicensing agreement provided for upfront consideration in the form of non-cash debt cancellation of approximately $3,800,000, which is reflected in the Company's current liabilities as of December 31, 2025. The $3,800,000 million will be recognized as license revenue in the Consolidated Statements of Operations for the quarter ending March 31, 2026. Conference Call / Webcast Palatin will host a conference call and audio webcast on February 17, 2026, at 11:00 a.m. ET to discuss the results of operations in greater detail and provide an update on corporate developments. Individuals interested in listening to the conference call live can dial 1-888-506-0062 (US) or 1-973-528-0011 (International), Participant Access Code: 967781. The audio webcast and replay can be accessed by logging on to the "Investor-Webcasts" section of Palatin's website at http://www.palatin.com. A telephone and audio webcast replay will be available one hour after the completion of the call. To access the telephone replay, dial 1-877-481-4010 (US) or 1-919-882-2331 (International), Replay Passcode 83633. The webcast and telephone replay will be available through March 3, 2026. Melanocortin-4 Receptor Agonists Effect on Obesity Hypothalamic neurons expressing the melanocortin-4 receptor (MC4R) play a central role in regulating stored energy, food intake, and body weight. Genetic mutations that inhibit signaling through the MC4R pathway lead to hyperphagia, decreased energy expenditure and early-onset obesity; such mutations have been identified as the cause of several rare genetic obesity disorders. MC4R agonism represents an attractive target for potential obesity treatments. About Hypothalamic Obesity Hypothalamic obesity is a rare and severe form of obesity caused by dysfunction or damage to the hypothalamus, the region of the brain that regulates appetite, satiety, and energy balance. Hypothalamic obesity 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 and developmental abnormalities affecting hypothalamic function. Individuals with hypothalamic obesity typically experience rapid, excessive weight gain, uncontrollable hunger, and profound metabolic disturbances that are resistant to conventional diet, exercise, and behavioral interventions. There are currently no approved pharmacologic treatments specifically indicated for hypothalamic obesity, representing a significant unmet medical need. About Prader-Willi Syndrome Prader-Willi syndrome (PWS) is a rare, complex genetic neurodevelopmental disorder caused by the loss of function of specific genes on chromosome 15. The condition is characterized by hyperphagia, impaired satiety, developmental delays, reduced muscle tone, endocrine abnormalities, and behavioral challenges. Individuals with PWS typically develop an intense and persistent drive to eat, beginning in early childhood, which can lead to severe obesity and related metabolic complications if not strictly managed. Current treatment approaches focus primarily on symptom management, including nutritional supervision, behavioral interventions, and growth hormone therapy, but there are no approved pharmacologic therapies that directly address hyperphagia or the underlying hypothalamic dysfunction associated with PWS. As a result, PWS represents a significant unmet medical need. About Melanocortin Receptor Agonists The melanocortin receptor ("MCR") system has effects on inflammation, immune system responses, metabolism, food intake, and sexual function. There are five melanocortin receptors, MC1R through MC5R. Modulation of these receptors, through use of receptor-specific agonists, which activate receptor function, or receptor-specific antagonists, which block receptor function, can have medically significant pharmacological effects. About Palatin Palatin is a biopharmaceutical company developing first-in-class medicines based on molecules that modulate the activity of the melanocortin receptor systems, with targeted, receptor-specific product candidates for the treatment of diseases with significant unmet medical need and commercial potential. Palatin's strategy is to develop products and then form marketing collaborations with industry leaders to maximize their commercial potential. For more information, visit the company's website at www.palatin.com and follow us on X (formally Twitter) @PalatinTech. Forward-looking Statements Statements in this press release that are not historical facts, including statements about future expectations of Palatin Technologies, Inc., such as statements about Palatin products in development, clinical trial results, potential actions by regulatory agencies, regulatory plans, development programs, proposed indications for product candidates, and market potential for product candidates are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and as that term is defined in the Private Securities Litigation Reform Act of 1995. Palatin intends that such forward-looking statements be subject to the safe harbors created thereby. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause Palatin's actual results to be materially different from its historical results or from any results expressed or implied by such forward-looking statements. Palatin's actual results may differ materially from those discussed in the forward-looking statements for reasons including, but not limited to, results of clinical trials, regulatory actions by the FDA and other regulatory and the need for regulatory approvals, Palatin's ability to fund development of its technology and establish and successfully complete clinical trials, the length of time and cost required to complete clinical trials and submit applications for regulatory approvals, products developed by competing pharmaceutical, biopharmaceutical and biotechnology companies, commercial acceptance of Palatin's products, and other factors discussed in Palatin's periodic filings with the Securities and Exchange Commission. Palatin is not responsible for updating events that occur after the date of this press release. Palatin Technologies® is a registered trademark of Palatin Technologies, Inc. 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Revenue: No product sales recorded for the quarter ended March 31, 2025, due to the sale of Vyleesi's worldwide rights. Operating Expenses: Total operating expenses were $4.8 million, net of $0.4 million gain, compared to $9.2 million in the previous year. Net Cash Used in Operations: $5.4 million for the quarter ended March 31, 2025, compared to $8.6 million in the same period in 2024. Net Loss: $4.8 million for the quarter ended March 31, 2025, compared to $8.4 million in the same period in 2024. Cash and Cash Equivalents: $2.5 million as of March 31, 2025, compared to $9.5 million at June 30, 2024. Warning! GuruFocus has detected 3 Warning Signs with PTNT. Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Palatin Technologies Inc (PTNT) reported positive top-line data for their Phase 2 study, demonstrating significant weight loss with the co-administration of melanocortin 4 receptor agonist bremelanotide and tirzepatide. The company achieved a significant reduction in operating expenses, decreasing from $9.2 million to $4.8 million compared to the previous year. Palatin Technologies Inc (PTNT) reported a decrease in net loss from $8.4 million to $4.8 million year-over-year, primarily due to reduced operating expenses. The FDA granted orphan drug status to PL7737 for treating obesity due to leptin receptor deficiency, with plans for an initial new drug application submission in early 2026. Positive Phase 2 study results for PL8177 in treating ulcerative colitis showed significant clinical remission and response rates, enhancing business development discussions with potential partners. Palatin Technologies Inc (PTNT) faced suspension of its common stock trading on the NYSE American Stock Exchange due to low selling prices, now trading on the OTC Pink Market. The company did not record any product sales for the quarter ended March 31, 2025, following the sale of Vyleesi's worldwide rights. Cash and cash equivalents significantly decreased from $9.5 million to $2.5 million as of March 31, 2025, indicating a need for additional funding. Palatin Technologies Inc (PTNT) is actively seeking multiple potential funding sources to meet future operating cash requirements. The company faces challenges in addressing the NYSE's decision to de-list its common stock, which could impact investor confidence. Q: Do you believe a higher dose of bremelanotide would increase weight loss, comparable to Wegovy or Zepbound? A: Yes, higher doses of bremelanotide have shown weight loss comparable to Wegovy in earlier studies. While tirzepatide is slightly better due to its multiple mechanisms, good MC4R agonists like bremelanotide can achieve competitive weight loss. - Carl Spana, CEO Q: Could weight maintenance become a focus in future obesity treatments, potentially getting into the label? A: Absolutely. New compounds will be evaluated for weight loss maintenance. Current strategies require long-term treatment, and melanocortin 4 agonists are well-suited for addressing weight regain issues. - Carl Spana, CEO Q: What benefits will the next-generation MC4Rs offer compared to the first generation? A: The next-generation MC4Rs aim to eliminate MCR1 activity to avoid skin darkening and offer more patient-friendly dosing, such as once-weekly or once-daily oral administration, improving over current treatments. - Carl Spana, CEO Q: How does Palatin plan to address the NYSE delisting issue? A: We are disappointed with the NYSE's decision and are assessing all available options to address the delisting. We believe this issue is transitory and are working to resolve it quickly. - Stephen Wills, CFO Q: What are the financial highlights for the quarter ended March 31, 2025? A: Palatin reported a net loss of $4.8 million, a decrease from $8.4 million the previous year, primarily due to reduced operating expenses. Cash and cash equivalents were $2.5 million, not including $3.5 million from recent funding activities. - Stephen Wills, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.