Palatin To Receive $5m From AstraZeneca

Palatin Technologies will receive $5m from AstraZeneca relating to an amendment of its ongoing exclusive research collaboration and license agreement to discover, develop and commercialise compounds that target melanocortin receptors for treatment of obesity and related indications.

Under the terms of the amended agreement, AstraZeneca has agreed to make a $2.5m payment upon signing and subject to completion of certain tasks relating to the program, $2.5m in the first quarter of calendar year 2010. Under the amendment, the terms of the original collaboration and license agreement signed in January 2007 relating to milestone payments and royalty rates were restructured.

Palatin has completed an exploratory clinical study with a melanocortin receptor compound and has also agreed to conduct additional clinical studies under a clinical trial sponsored research agreement to be funded by AstraZeneca.

Carl Spana, president and CEO of Palatin, said: “We appreciate the efforts and dedication of our colleagues at AstraZeneca as we work together to advance the program and are enthusiastic about the promise of compounds that target melanocortin receptors for treatment of obesity and related indications.”

Researchers at Palatin and AstraZeneca are continuing to complete selection of a lead drug candidate for further commercial development. Under the agreement, AstraZeneca is responsible for product commercialisation as well as product discovery and development costs.