Biopharmaceutical company’s breakthrough attracts investors

The response of the FDA to the drug Bremelanotide is scheduled for June 23. Case approved large potential for appreciation of biopharmaceutical shares.

Cranbury, NJ, United States – June 12, 2019 /MarketersMedia/ —

Palatin Technologies (PTN) is the biopharmaceutical company that has successfully developed bremelanotide, a drug that deals with the problem of hypoactive sexual desire disorder (HSDD) in women. bremelanotide is expected to receive FDA approval in June’s end of 2019, which would generate large source of revenue for the company from its licensing agreements.

“This is the biggest breakthrough in women’s sexual health since the advent of ‘Pill’ for contraception.” It validates (and) legitimizes female sexuality as an important component of health, “The National Consumers League said in a statement, according to Reuters .

Bremelanotide, brand name Vyleesi or Rekynda, is a drug that deals with problems of hypoactive sexual desire disorder (HSDD) in women. It has been proven to have positive results from two Phase 3 trials with more than 1,200 patients.

Addyi’s inability to meet market demand has opened up outstanding market opportunity for bremelanotide. In 2015, HSDD was estimated to affect 8 million women in the U.S. According to Palatin, this number has almost doubled to around 15 million, which further boost the market demand.

As bremelanotide has shown very positive results during clinical trials and has no serious adverse effects, it is likely that it will be able to capture the currently increasing market demand. To make a small comparison, let’s look at worldwide sales figures of Viagra – a very popular product treating erectile dysfunction and pulmonary arterial hypertension in men – over the last 15 years.

On average, Viagra generated more than $ 1.7B annually, with around 50% of revenues coming from the US.

In January 2017, Palatin (PTN) entered into a license agreement with AMAG Pharmaceuticals for exclusive licensing agreement of bremelanotide.Thus, the licensing agreement with AMAG, a specialist in women’s health, is very beneficial to Palatin (PTN).

Besides, Palatin also targeted the Asia market by signing licensing agreements with Kwangdong Pharmaceutical and Shanghai Fosun Pharmaceutical for exclusive right to develop bremelanotide in Korea and China, Taiwan, Hong Kong SAR and Macau SAR These licensing agreements not only generated an upfront payment for Palatinate will also bring about sales royalties in the future.

Palatin’s stock is currently traded at $1.25 . However, we expect this price to increase significantly after bremelanotide is approved by the FDA. The most optimistic view stocks above $ 10. Always remembering the risks involved.

Under the term of licensing contracts, Palatin is entitled to receive milestone payments after FDA approvals of $60M from AMAG, $7.5M from Fosun and $3M from Kwangdong. Altogether these add up to $70.5M in revenues next year. Moreover, also under the term of the licensing contracts, Palatin may receive tiered royalties on annual net sales of bremelanotide up to $300M from AMAG, $92.5M from Fosun and $37.5M from Kwangdong. As Palatin does not report exactly the percentage of annual sales it would receive as tiered royalties, it is difficult to make any prediction. However, as we have discussed earlier, we see a very promising future for bremelanotide. Therefore, we expect this amount to range from $13M to $20M annually (or 3% – 5% of the total royalties). Thus, we expect next year revenue to range from $83.5M to $90.5M, which may raise the net income to around $40M – $47M.

DISCLAIMER: I am not a financial advisor. These is for educational purposes only. Investing of any kind involves risk. Your investments are solely your responsibility and we do not provide personalized investment advice. It is crucial that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. Please consult your financial or tax professional prior to making an investment.

https://www.palatin.com/
Palatin Technologies, Inc.
4-B Cedar Brook Drive
Cedar Brook Corporate Center
Cranbury, NJ 08512
1-609-495-2200 (tel)

Contact Info:
Name: Palatin Technologies, Inc.
Email: Send Email
Organization: Palatin Technologies, Inc.
Address: 4-B Cedar Brook Drive Cedar Brook Corporate Center Cranbury, NJ 08512
Phone: 1-609-495-2200
Website: https://www.palatin.com/

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Release ID: 522368