Palatin enters $300M AstraZeneca deal for obesity drugs

USA-based Palatin Technologies could earn as much as $300.0 million after granting AstraZeneca access to its portfolio of small-molecule compounds that target melanocortin receptors that have potential in the treatment of obesity. A near-term objective of the collaboration is to finalize selection of a lead drug candidate for clinical evaluation. Under the terms of the accord, Palatin will receive an upfront payment of $10.0 million. Up to $180.0 million of the $300 million it stands to receive is contingent upon development and regulatory milestones and the balance on achievement of sales targets, together with the payment of stepped royalties on product sales to double digit rates, dependent on sales achieved. AstraZeneca will assume responsibility for product commercialization, discovery and development costs, with both companies contributing scientific expertise in the research collaboration.