Palatin Completes Sale of Vyleesi® to Cosette Pharmaceuticals for up to $171 Million
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The transaction between Palatin Technologies and Cosette Pharmaceuticals involves a significant upfront payment and the potential for substantial sales-based milestone payments. This deal indicates a strategic shift for Palatin, suggesting a positive outlook for their liquidity and ability to focus on their core pipeline. The infusion of $12 million upfront provides immediate working capital, which could enhance the company's financial stability.
Moreover, the contingent milestone payments, which could total up to $159 million, are tied to the product's performance in the market. These payments could provide a substantial future revenue stream, although they are uncertain and dependent on Vyleesi's commercial success. Investors should note the potential for these payments to significantly impact future earnings, while also considering the inherent risks associated with sales-based milestones.
Vyleesi's role as a treatment for HSDD represents a niche but critical area in women's healthcare. The transfer of Vyleesi to Cosette, a company focused on women's health, could ensure better market penetration and support for the product. Palatin's decision to divest Vyleesi allows it to concentrate resources on its melanocortin receptor system pipeline, which includes promising treatments for dry eye disease and ulcerative colitis.
The upcoming topline data results from their Phase 3 clinical study and the interim analysis from the Phase 2 study are pivotal in determining the potential efficacy and marketability of their candidates. These results will be critical in assessing Palatin's future in the biopharmaceutical sector and could have a substantial impact on investor confidence and the company's valuation.
Palatin's strategic refocus on its development pipeline may resonate well with industry trends, where specialization and targeted therapies are becoming more prevalent. The melanocortin receptor system is a relatively novel target in drug development and Palatin's progress in this area could position them as a leader in a specialized market segment. The anticipated topline data from their clinical trials will be critical in assessing Palatin's competitive edge in the biopharmaceutical industry.
Additionally, the divestiture could be seen as a move to streamline operations and reduce the complexity of managing a commercial product, allowing Palatin to allocate more resources towards R&D. The deal with Cosette could also reflect a strategic alignment with a partner that has a dedicated focus on women's health, potentially enhancing the commercial success of Vyleesi.
- Palatin to receive
$12 million $159 million - Palatin's focus is solely on its development and clinical pipeline based on the melanocortin receptor system
"The divestiture of Vyleesi is consistent with our strategic decision to concentrate on our robust development and clinical pipeline," stated Carl Spana, Ph.D., President and Chief Executive Officer of Palatin. "Our focus now is solely on developing novel therapeutics that modulate the melanocortin receptor system. Our Phase 3 PL9643 clinical study for dry eye disease has completed patient enrollment and treatment, and we look forward to the availability of topline data results in the near future. Our Phase 2 study of oral PL8177 in patients with ulcerative colitis is expected to have an interim analysis readout in the first quarter and topline trial results in the second quarter of calendar year 2024."
"Vyleesi is an important product for the millions of women suffering from HSDD. Cosette is committed to women's healthcare, and we are pleased they will make Vyleesi a priority in their current product portfolio," concluded Dr. Spana.
"Vyleesi is an important addition to our rapidly expanding women's health platform," said Apurva Saraf, President and Chief Executive Officer of Cosette. "HSDD is the most prevalent form of female sexual dysfunction, affecting approximately six million premenopausal women in the
Under the terms of the asset purchase agreement with Cosette, Palatin will receive
About Cosette Pharmaceuticals, Inc,
Cosette Pharmaceuticals, Inc. ("Cosette") is a US-based, fully integrated pharmaceutical company with a fast-growing portfolio of branded pharmaceuticals consisting of products in women's health, cardiology and dermatology. Cosette has a long history in quality manufacturing of complex dosage forms including topical creams, ointments, oral liquids/solutions and suppositories. Cosette has corporate and manufacturing facilities in
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 additional information regarding Palatin, please visit Palatin's website at www.Palatin.com and follow Palatin on Twitter at @PalatinTech.
Forward-looking Statements
Statements in this press release that are not historical facts, including statements about future expectations of Palatin, such as statements about Vyleesi results and potential market, 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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SOURCE Palatin Technologies, Inc.
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