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1. Company Snapshot

1.a. Company Description

Palatin Technologies, Inc., a biopharmaceutical company, develops targeted receptor-specific therapeutics for the treatment of various diseases in the United States.The company's lead product is Vyleesi, a melanocortin receptor (MCr) agonist for the treatment of premenopausal women with hypoactive sexual desire disorder.It is also developing oral PL8177, a selective MC1r agonist peptide that has completed Phase I clinical trial for the treatment of inflammatory bowel diseases.


In addition, the company engages in the development of PL9643, a peptide melanocortin agonist active at multiple MCrs, including MC1r and MC5r for anti-inflammatory ocular indications, such as dry eye disease; and melanocortin peptides for diabetic retinopathy.Further, it is developing PL3994, a natriuretic peptide receptor (NPR)-A agonist and synthetic mimetic of the endogenous neuropeptide hormone atrial natriuretic peptide for cardiovascular indications; and PL5028, an NPR-A and NPR-binder to treat cardiovascular and fibrotic diseases, including reducing cardiac hypertrophy and fibrosis.The company was incorporated in 1986 and is based in Cranbury, New Jersey.

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1.b. Last Insights on PTN

Palatin Technologies' recent performance was driven by several positive developments. The company closed an upsized $18.2 million public offering, with the full exercise of the underwriters' over-allotment option, providing a strengthened balance sheet. Additionally, Palatin regained compliance with NYSE American listing standards, and its common stock resumed trading under the symbol "PTN" on November 12, 2025. The company's obesity pipeline is advancing, with PL7737 IND-enabling toxicology underway and planned IND submission and clinical trial initiation in the first half of 2026. A research collaboration with Boehringer Ingelheim for retinal diseases yielded a $6.5 million milestone payment.

1.c. Company Highlights

2. Palatin's Q1 FY2026 Earnings: A Significant Turnaround

In the first quarter ended September 30, 2025, Palatin reported a substantial improvement in financial performance, with collaboration license revenue reaching $8.8 million, up from $0 in the comparable quarter last year. The company's operating expenses decreased to $4.2 million from $7.8 million in the same period last year, contributing to a net income of $4.7 million compared to a net loss of $7.8 million in the previous year. Earnings per share (EPS) came in at -$4.14193, significantly better than the estimated -$9.5. The revenue growth was primarily driven by the $8.8 million collaboration license revenue, which was a result of the research collaboration and license agreement with Boehringer Ingelheim.

Publication Date: Nov -20

📋 Highlights
  • Collaboration Milestone Payment:: Received $6.5 million research milestone payment from Boehringer Ingelheim, with potential for up to $14.5 million in additional near-term milestones and $307 million in future milestones plus royalties.
  • Public Offering Funding:: Closed $18.2 million upsized public offering, including $16.9 million net proceeds from 2.8 million shares and warrants, with stock resuming trading on NYSE American under PTN.
  • Q1 2026 Revenue Growth:: Generated $8.8 million in collaboration license revenue, up from $0 in the prior-year quarter, while operating expenses declined to $4.2 million from $7.8 million.
  • Net Income Turnaround:: Reported $4.7 million net income compared to a $7.8 million net loss in the same period last year, driven by milestone revenue and cost reductions.
  • Cash Runway Extension:: Post-Q1 cash of $1.3 million increased to $23.4 million after $6.5 million milestone payment (October 2025) and $16.9 million offering proceeds, funding operations beyond December 31, 2026.

Revenue Growth and Operating Expenses

The significant increase in revenue was largely due to the upfront payment and research milestone achieved under the agreement with Boehringer Ingelheim. Operating expenses declined by 46% year-over-year, driven by efficient management of research and development costs. The company's ability to control expenses while generating revenue contributed to the net income in the quarter.

Cash Position and Funding

As of September 30, 2025, Palatin's cash and cash equivalents stood at $1.3 million. However, the company received a $6.5 million milestone payment in October 2025 and $16.9 million in net proceeds from the public offering in November 2025, which is expected to provide a cash runway beyond the quarter ending December 31, 2026. This additional funding is crucial for supporting the company's research and development efforts, particularly the advancement of its lead program, PL-7737.

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 1318.8%, indicating a significant expansion in the company's operations. Currently, the stock trades at a P/S Ratio of 540.0, and an EV/EBITDA of -72.43, suggesting that the market has priced in substantial growth expectations. With a lead program expected to enter the clinic in the first half of 2026 and multiple programs designed to leverage the melanocortin system, Palatin is poised for potential long-term growth.

Research and Development Focus

Palatin's research and development efforts are focused on developing highly selective melanocortin-4 receptor agents for treating syndromic and genetic obesity. The company's lead program, PL-7737, is an orally active small molecule with a selective melanocortin-4 receptor agonist profile. Additionally, the company has multiple programs aimed at exploiting the role of the melanocortin system in regulating stress responses and inflammation resolution, with plans to out-license these programs.

3. NewsRoom

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Here Are Wednesday’s Top Wall Street Analyst Upgrades and Downgrades: American Eagle Outfitters, Equinix, Garmin, Honeywell, Uber, Wendy’s and More

Dec -03

Source: 247wallst.com

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Palatin Technologies, Inc. (PTN) Q1 2026 Earnings Call Transcript

Nov -13

Source: seekingalpha.com

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Palatin Reports First Quarter Fiscal Year 2026 Financial Results and Provides Corporate Update

Nov -13

Source: prnewswire.com

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Palatin Technologies Announces Closing of Upsized $18.2 Million Public Offering with the Full Exercise of the Underwriters' Over-Allotment Option

Nov -12

Source: prnewswire.com

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Palatin Presents Data at ObesityWeek® 2025 Highlighting Promise of Melanocortin-Based Therapies for Obesity

Nov -06

Source: prnewswire.com

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Palatin Technologies Announces Pricing of Upsized $15.8 Million Public Offering

Nov -06

Source: prnewswire.com

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Palatin Earns €5.5 Million ($6.5 Million) Milestone Payment in Retinal Disease Collaboration with Boehringer Ingelheim

Sep -22

Source: prnewswire.com

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Boehringer Ingelheim and Palatin Technologies to develop potential first-in-class melanocortin receptor targeted treatment for patients with retinal diseases

Aug -18

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Melanocortin Receptor System

Expected Growth: 8.5%

The 8.5% growth of Melanocortin Receptor System from Palatin Technologies, Inc. is driven by increasing demand for novel treatments of female sexual dysfunction, growing awareness of unmet medical needs, and Palatin's strong pipeline of melanocortin-based therapies.

7. Detailed Products

Bremelanotide

A melanocortin receptor agonist for the treatment of hypoactive sexual desire disorder (HSDD) in premenopausal women

PL-8177

A melanocortin receptor agonist for the treatment of inflammatory bowel disease (IBD)

PL-8331

A melanocortin receptor agonist for the treatment of asthma

8. Palatin Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Palatin Technologies, Inc. has a moderate threat of substitutes due to the presence of alternative treatments and therapies for the conditions it targets.

Bargaining Power Of Customers

Palatin Technologies, Inc. has a low bargaining power of customers due to its strong relationships with healthcare providers and patients.

Bargaining Power Of Suppliers

Palatin Technologies, Inc. has a moderate bargaining power of suppliers due to its reliance on a few key suppliers for raw materials and manufacturing services.

Threat Of New Entrants

Palatin Technologies, Inc. has a high threat of new entrants due to the attractiveness of the biotechnology industry and the potential for new companies to enter the market.

Intensity Of Rivalry

Palatin Technologies, Inc. operates in a highly competitive industry with many established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 88.68%
Debt Cost 3.95%
Equity Weight 11.32%
Equity Cost 8.28%
WACC 4.44%
Leverage 783.74%

11. Quality Control: Palatin Technologies, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Chimerix

A-Score: 3.3/10

Value: 6.2

Growth: 3.7

Quality: 5.0

Yield: 0.0

Momentum: 5.0

Volatility: 0.0

1-Year Total Return ->

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Agenus

A-Score: 3.2/10

Value: 9.4

Growth: 2.1

Quality: 4.6

Yield: 0.0

Momentum: 2.5

Volatility: 0.7

1-Year Total Return ->

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Arcus Biosciences

A-Score: 3.2/10

Value: 6.6

Growth: 3.6

Quality: 4.8

Yield: 0.0

Momentum: 1.5

Volatility: 2.7

1-Year Total Return ->

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Fate Therapeutics

A-Score: 2.9/10

Value: 7.8

Growth: 4.0

Quality: 4.3

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

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Lexicon Pharmaceuticals

A-Score: 2.8/10

Value: 6.6

Growth: 3.2

Quality: 4.4

Yield: 0.0

Momentum: 2.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Palatin Technologies

A-Score: 2.4/10

Value: 8.2

Growth: 0.0

Quality: 6.0

Yield: 0.0

Momentum: 0.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

23.0$

Current Price

23$

Potential

-0.00%

Expected Cash-Flows