Palatin loss narrows but cash running short

US biopharmaceutical group Palatin Technologies has decreased its loss significantly in the year ended June 30, 2008, due to reduced costs from the stalled development of its lead candidate bremelanotide.

Total revenue was down 20% year-on-year to $11.5 million. R&D expenditure dropped 43% to $21.2 million. The firm says this was due to lower development costs for bremelanotide, a first in class melanocortin agonist drug candidate for the treatment of both male erectile and female sexual dysfunction. Recent responses from representatives of the Food and Drug Administration raised serious concerns related to the benefit/risk ratio to support the drug's progression into Phase III, leading Palatin's marketing partner King to terminate their agreement (Marketletter September 17).