Under the extension to the licensing agreement, Palatin will receive an upfront payment of $1.6 million and AstraZeneca has been granted licenses to additional compounds and patents.
Additionally, the research collaboration term has been extended, with Palatin contributing scientific expertise and AstraZeneca supporting Palatin’s internal activities at an agreed full-time equivalent rate.
Under the clinical trial sponsored research agreement, Palatin will be responsible for conducting a study of the effects of melanocortin receptor specific compounds on food intake, obesity and other metabolic parameters. Palatin will be eligible, in the near future, for milestone payments totaling $5 million in connection with the collaboration and licensing agreement.
Stephen Wills, Palatin’s executive vice president of operations and CFO, said: “The license extension and clinical trial agreements point to the progress Palatin and AstraZeneca have made with their collaborative melanocortin receptor obesity program. Of the total $6.6 million due from AstraZeneca, we anticipate receiving $4.1 million by December 31, 2008 and the remaining $2.5 million in the first quarter of calendar year 2009.”