Palatin Technologies (NYSEAMERICAN:PTN) reported a narrower fiscal third-quarter loss as collaboration and license revenue helped offset higher operating expenses, while management said the company remains focused on developing melanocortin-4 receptor agonists for rare obesity disorders.
On a conference call covering the quarter ended March 31, 2026, Chief Financial Officer and Chief Operating Officer Stephen Wills said Palatin recognized $3.9 million in collaboration and license revenue, compared with no revenue in the prior-year period. He said the increase was primarily tied to revenue recognition of upfront consideration under the Altanispac agreement.
Palatin posted a net loss of $1.4 million, or $0.37 per basic and diluted share, compared with a net loss of $4.8 million, or $9.13 per basic and diluted share, in the prior-year period. Wills attributed the improvement primarily to collaboration and license revenue recognized during the quarter.
Cash Runway Extends Into 2027
Wills said Palatin had $10.2 million in cash and cash equivalents as of March 31, 2026, along with approximately $2.2 million of other receivables expected to be collected during the quarter ending June 30, 2026.
Based on current operating and development plans, as well as the company’s ability to manage the timing of certain expenses, Wills said Palatin believes its existing cash resources and expected receivables will be sufficient to fund operations through June 30, 2027.
Obesity Pipeline Remains Central Focus
President and Chief Executive Officer Dr. Carl Spana said Palatin continued to advance its melanocortin-4 receptor, or MC4R, agonist therapies for rare obesity disorders. He said the company is focusing on improving tolerability, usability and long-term outcomes in chronic treatment settings.
Spana said Palatin’s objective is to develop “best-in-class” MC4R agonists for rare syndromic and genetic obesity disorders, including hypothalamic obesity, Prader-Willi syndrome and Bardet-Biedl syndrome. He said those conditions are associated with severe hyperphagia, rapid weight gain and metabolic complications, and often require lifelong treatment.
The company’s once-weekly MC4R-selective peptide agonist remains on track for an initial investigational new drug, or IND, submission in the fourth quarter of calendar 2026, Spana said. He described the peptide program as Palatin’s lead clinical asset.
Palatin is also advancing next-generation oral small molecule MC4R-selective agonist candidates, using data from earlier compounds including PL7737. Spana said internal preclinical work has shown improved MC4R selectivity, minimal melanocortin-1 receptor activity and increased potency compared with earlier compounds. He said the company believes those characteristics could support lower dosing requirements and reduce or potentially eliminate hyperpigmentation, a known class effect associated with MC1R activity.
PL7737 Deprioritized as Newer Candidates Advance
During the question-and-answer session, AGP analyst Scott Henry asked whether PL7737 had been discontinued. Spana said the decision to move away from advancing PL7737 as the lead oral candidate was “multifactorial,” including concerns about whether the compound could meet Palatin’s goals for selectivity and dosing.
Spana said funding received last year allowed Palatin to push backup compounds forward, and some of those candidates are showing profiles “better than where PL7737 is,” including activity that he said is approaching elimination of MC1R activity.
“We really want to make sure we have best-in-class compounds,” Spana said, adding that Palatin wants to be stringent before spending significant resources to move a compound into the clinic. He also said PL7737 remains “extremely valuable” to the company because of what Palatin has learned from it and that the company is still evaluating it.
Spana said the next-generation oral program would likely follow a similar clinical path to PL7737, including development in hypothalamic obesity and Prader-Willi syndrome.
Partnerships Provide Non-Dilutive Capital
Spana also highlighted Palatin’s partnerships as part of its broader strategy to use its melanocortin receptor platform to generate non-dilutive capital. He said the company’s partnership with Boehringer Ingelheim for retinal diseases continues to provide milestone opportunities and potential long-term royalties. During the second half of calendar 2025, Palatin received upfront and milestone payments totaling EUR 7.5 million, or approximately $8.8 million, related to that partnership.
In January 2026, Palatin also completed the sublicensing of PL9643 for dry eye disease to Altanispac Labs, receiving $3.8 million in upfront consideration while retaining potential future payments and royalties. Spana said the company’s PL8177 ulcerative colitis program remains positioned for potential partnering after positive Phase 2 proof-of-concept results.
Looking ahead, Spana said the peptide program is expected to move toward an IND submission in the fourth quarter of calendar 2026, while the oral small molecule program is advancing toward an IND in the first half of calendar 2027. He said the company has developed new intellectual property around MC4R selectivity and believes it is positioned to deliver differentiated therapies for patients with significant unmet medical needs.
About Palatin Technologies (NYSEAMERICAN:PTN)
Palatin Technologies, Inc (NYSE American: PTN) is a clinical-stage biopharmaceutical company focused on the development of receptor-targeted peptide therapeutics. The company concentrates on designing and advancing peptide- and small-molecule programs that selectively target specific receptor systems with the goal of treating endocrine, inflammatory and cardiovascular-related disorders. Palatin’s approach emphasizes receptor specificity to improve therapeutic profiles and reduce off-target effects commonly seen with less selective agents.
Palatin’s activities center on preclinical and clinical development, regulatory interaction and the pursuit of strategic partnerships or licensing arrangements to support late-stage development and commercialization.
