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

Significant progress on multiple fronts – obesity pipeline advancing towards the clinic, out-licensing collaboration, strengthened balance sheet, and reinstatement of NYSE American trading

• Melanocortin-based therapies for obesity
  • PL7737 IND-enabling toxicology underway; IND submission and clinical trial initiation planned for the first half of 2026
    
  • Next-generation selective peptide MC4R agonists d esigned for once-weekly subcutaneous dosing; IND submission and clinical trial initiation planned for mid-2026
• Research Collaboration, License and Patent Assignment Agreement with Boehringer Ingelheim for the treatment of retinal diseases in August 2025
  • Received €2.0M ($2.3M) upfront
    
  • Achieved €5.5M ($6.5M) research milestone in September 2025
• $18.2 million public offering, including full exercise of the over-allotment option, closed on November 12, 2025
  
• Regained compliance with NYSE American listing standards – common stock resumed trading under the symbol "PTN" on November 12, 2025
  
• Teleconference and Webcast to be held on Thursday, November 13, 2025, at 11:00 AM EST

PRINCETON, N.J., Nov. 13, 2025 /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 first quarter ended September 30, 2025 and provided a corporate update.

"Palatin's melanocortin-based obesity programs are advancing rapidly, led by our oral small molecule PL7737, which is on track to enter clinical studies in the first half of next year," said Carl Spana, Ph.D., President and CEO of Palatin "The strength of our preclinical data and our ability to target both broad and rare obesity indications – particularly neuroendocrine diseases such as hypothalamic obesity, underscore the differentiated potential of our melanocortin platform and our commitment to transforming obesity treatment."

"The execution of our collaboration with Boehringer Ingelheim, completion of our $18.2 million public offering, and reinstatement of NYSE American trading mark an important inflection point for Palatin," continued Dr. Spana. "As we move into 2026, we are well positioned with a strengthened balance sheet, a global partnership delivering near-term milestones, and a robust pipeline of clinical catalysts that collectively support meaningful long-term value creation."

Obesity Program Update

•  PL7737 (oral MC4R agonist):
  • Demonstrated robust weight loss, strong safety, and high oral bioavailability in preclinical models.
  • IND-enabling toxicology studies are ongoing, with an IND filing and initiation of a Phase 1 single- and multiple-ascending dose (SAD/MAD) trial expected in the first half of 2026.
  • Phase 1 studies are planned to include patients with hypothalamic obesity.
  • The U.S. FDA has granted Orphan Drug Designation for the treatment of leptin receptor (LEPR) deficiency–related obesity.
• Next-generation selective peptide MC4R agonists:
  • Designed for once-weekly subcutaneous dosing, with an IND filing and Phase 1 SAD/MAD trial planned for mid-2026.
  • Phase 1 studies are also expected to include patients with hypothalamic obesity.
  • Pre-clinical and early clinical data support co-administration with tirzepatide as a safe, potentially synergistic approach to weight management.

Out-Licensing Programs Update

• Retinal diseases (MCR agonists) – Boehringer Ingelheim collaboration
  • 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.
  • 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, plus tiered royalties on future net sales. 
• PL9643 (MCR agonist) - Dry Eye Disease
  • Reported positive Phase 3 MELODY-1 results, with 6 of 13 symptom endpoints showing statistically significant complete symptom resolution versus placebo (p<0.05).
  • Out-licensing discussions are ongoing.
• PL8177 (MCR agonist) - Ulcerative Colitis
  • Achieved positive Phase 2 proof-of-concept results.
  • Out-licensing discussions are ongoing.
• Diabetic nephropathy (MCR agonists)
  • Reported positive Phase 2 open label data.
  • Out-licensing discussions are ongoing.

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 will have an exercise price of $6.50 per share and will be immediately exercisable. The Series J Warrants 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 (long-acting peptide or oral small molecule) (the "FDA Exercise Period"). Each Series K Warrant will have an exercise price of $8.125 per share and will be immediately exercisable. The Series K Warrants 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 terminate automatically upon the earlier of the (i) eighteen-month anniversary of the original issuance date of the Series J Warrant or (ii) the expiration of the FDA Exercise Period and prior to the five-year anniversary of the issuance of the Series K Warrant.

The gross proceeds from the Offering, before deducting the underwriting discounts and commissions and offering expenses, are expected to be approximately $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 under Section 1003(a)(iii) of the NYSE American Company Guide (the "Stockholders' Equity Rule") 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" and CUSIP "696077601".

Fiscal First Quarter Ended September 30, 2025 Financial Results

Revenue
For the quarter ended September 30, 2025, Palatin recognized $8,847,550 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 an upfront payment, the achievement of a research milestone, and certain cost related reimbursements.

Operating Expenses
Total operating expenses were $4.2 million for the first quarter ended September 30, 2025, compared to $7.8 million for the comparable quarter last year. The decrease was mainly related to a decrease in spending on our MCR development programs.

Other Income / (Expense)
Total other income (expense), net was $16,481 for the quarter ended September 30, 2025, compared to $(58,964) for the comparable quarter last year. The increase was a result of foreign currency transaction losses incurred during the quarter ended September 30, 2024 and a decrease in interest expense offset by a decrease in investment income.

Cash Flows
Palatin's net cash used in operations for the quarter ended September 30, 2025, was $1.6 million, compared to net cash used in operations of $7.0 million for the comparable quarter last year. The decrease in net cash used in operations was mainly due to the recognition of license and contract revenue recognized during the quarter ended September 30, 2025, related to the Boehringer Ingelheim agreement.

Net Income / (Loss)
Palatin reported net income for the quarter ended September 30, 2025, of $4.7 million, or $4.81 per basic common shares and $4.26 per diluted common share, compared to a net loss of $7.8 million, or $(19.71) per basic and diluted common share, for the comparable quarter last year.

The increase in net income for the quarter ended September 30, 2025, was mainly due to the revenue recognized pursuant to the Boehringer Ingelheim agreement and the decrease in operating expenses.

Cash Position
As of September 30, 2025, Palatin's cash and cash equivalents were $1.3 million, compared to cash and cash equivalents of $2.6 million as of June 30, 2025.

The $1.3 million of cash and cash equivalents as of September 30, 2025, does not include approximately $6.5 million milestone payment pursuant to our retinal disease collaboration with Boehringer Ingelheim in October 2025 and the net proceeds from the Company's underwritten public offering of approximately $16.9 million in net proceeds which closed on November 12, 2025. Palatin currently expects a cash runway beyond the quarter ending December 31, 2026.

Conference Call / Webcast
Palatin will host a conference call and audio webcast on November 13, 2025, at 11:00 a.m. Eastern Time 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 1-877-545-0320 (US) or 1-973-528-0002 (International), Participant Access Code: 614229. 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: 53237. The webcast and telephone replay will be available through November 27, 2025.

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 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.

SOURCE Palatin Technologies, Inc.