On Tuesday, H.C. Wainwright maintained a Buy rating on shares of Palatin Technologies (NYSE:PTN), with a price target of $17.00. The affirmation follows Palatin's recent announcement that it has completed the enrollment phase of its Phase 2 clinical trial for PL8177, a melanocortin-1 receptor (MC1R) agonist being tested for the treatment of ulcerative colitis (UC).
The trial, which began with a target enrollment of 28 participants, concluded early with 13 patients due to Palatin's decision to seek out-licensing opportunities for the program. Despite the early closure, the study continues to evaluate the safety, efficacy, tolerability, pharmacokinetics, and biomarkers of PL8177. The primary efficacy measure for the trial is the Mayo Endoscopic Subscore, focusing on disease activity within the colonic mucosa.
Palatin's strategic shift towards its obesity program has prompted the company to actively look for third-party partners to take over the development of PL8177. This move is part of a broader strategy to refocus resources on areas of higher priority within their portfolio.
The completion of enrollment marks a milestone for the PL8177 program, as it progresses through the clinical trial process. Palatin's commitment to advancing its obesity program, while still ensuring the continuation of the UC study, indicates a balance in managing its development pipeline.
Investors and stakeholders in Palatin Technologies are watching closely as the company navigates the clinical and strategic pathways for its development programs. The maintained Buy rating and $17.00 price target by H.C. Wainwright reflect a positive outlook on the company's potential and stock performance.
In other recent news, Palatin Technologies has faced a non-compliance notice from NYSE American LLC, due to not meeting the stockholders' equity requirement of $6 million. Despite this, Palatin's compliance plan has been accepted by the Exchange, allowing the company to remain listed until April 10, 2025. This issue does not affect the company's business operations or its listing on the Exchange.
In financial developments, Palatin reported no product sales for the fourth quarter of its fiscal year 2024. However, the company managed to reduce operating expenses and completed several clinical trials. Palatin also sold its product Vyleesi to Cosette Pharmaceuticals for up to $171 million, with an upfront payment of $12 million.
On the clinical front, Palatin has made significant progress in its drug development programs. The company completed a successful Phase III trial for PL9643 for dry eye disease, with a New Drug Application expected in early 2026. Additionally, a Phase II study for obesity treatment combining bremelanotide with tirzepatide has been initiated, with results expected in early 2025.
InvestingPro Insights
Recent InvestingPro data provides additional context to Palatin Technologies' (NYSE:PTN) current financial situation and market performance. Despite the company's strategic shift and ongoing clinical trials, PTN's market capitalization stands at a modest $21.5 million. The company's financial health presents some challenges, as highlighted by several InvestingPro Tips.
Two particularly relevant InvestingPro Tips indicate that Palatin is "quickly burning through cash" and "not profitable over the last twelve months." These insights align with the company's strategic decision to seek out-licensing opportunities for its PL8177 program and focus on its obesity program, potentially as a means to manage resources more efficiently.
On a positive note, PTN has seen a "significant return over the last week," with a 1-week price total return of 18.28%. This recent uptick could be related to the announcement of the completed enrollment phase for the PL8177 clinical trial, which investors may view favorably.
It's worth noting that InvestingPro offers 6 additional tips for Palatin Technologies, which could provide further insights into the company's financial position and market outlook. Investors interested in a more comprehensive analysis may find value in exploring these additional tips on the InvestingPro platform.
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