Palatin Technologies (NYSEAMERICAN:PTN) executives highlighted recent financing activity, progress in the company’s melanocortin-4 receptor (MC4R)-based obesity pipeline, and updated financial results during the company’s second quarter fiscal 2026 earnings call.
Financing strengthens balance sheet and restores NYSE American compliance
Chief Financial Officer and Chief Operating Officer Steve Wills said the company completed an upsized $18.2 million underwritten public offering that closed on November 12, 2025, including full exercise of the over-allotment option. The offering consisted of approximately 2.8 million shares of common stock (or pre-funded warrants), along with Series J and Series K warrants, at a combined public offering price of $6.50 per share and accompanying warrants.
According to management, proceeds are being used to advance Palatin’s obesity programs and for working capital and general corporate purposes. Wills also said the financing helped Palatin regain compliance with NYSE American continued listing standards, and the stock resumed trading on the NYSE American under the symbol PTN effective November 12, 2025.
Quarterly results reflect higher pipeline investment
For the second quarter ended December 31, 2025, Palatin reported $116,000 in revenue, compared to $0 in the prior-year period. Wills said the revenue related to cost reimbursements under the company’s collaboration agreement with Boehringer Ingelheim.
Total operating expenses were $7.4 million, up from $2.6 million in the comparable quarter a year earlier. Wills attributed the year-over-year comparison primarily to a gain on a sale-leaseback recorded in the December 31, 2024 quarter that reduced net operating expenses in that period. In the most recent quarter, he said operating expenses increased due to higher investment in the company’s MC4R-based obesity development programs, as well as increased compensation costs and professional fees.
Other income (net) was approximately $65,000, compared with approximately $169,000 in the prior-year period, reflecting lower investment income and foreign currency translation gains, partially offset by lower interest expense.
Net cash use in operations was $4.8 million, which Wills said was consistent with the same quarter last year. The company reported a net loss of $7.3 million, or $2.86 per share, compared with a net loss of $2.4 million, or $5.92 per share, in the prior-year period. Wills said the change reflected higher operating expenses tied to advancing pipeline programs and the absence of a Vyleesi divestiture gain recorded in the prior year.
Palatin ended the quarter with $14.5 million in cash and cash equivalents, compared with $1.3 million at September 30, 2025 and $2.6 million at June 30, 2025. Based on current operating plans, Wills said management expects the company’s cash runway to extend beyond the quarter ending March 31, 2027.
Obesity pipeline: oral MC4R agonist on track for first-half 2026 IND
CEO Carl Spana said Palatin is focused on advancing differentiated MC4R-based therapeutics, primarily for rare syndromic and genetic obesity disorders, including hypothalamic obesity and Prader-Willi syndrome. He said the company’s lead oral small molecule MC4R agonist, PL7737, continues to progress through IND-enabling toxicology studies and remains on track for an IND submission and initiation of a phase 1 single-ascending dose and multiple-ascending dose (SAD/MAD) trial in the first half of calendar 2026.
Spana also said Palatin is advancing next-generation selective MC4R peptide agonists designed for once-weekly subcutaneous dosing, with an IND submission planned in the second half of calendar 2026.
Management emphasized a development focus on product differentiation, including efforts to enhance tolerability and minimize off-target effects. Spana said the company is designing compounds for reduced gastrointestinal side effects and to minimize hyperpigmentation by increasing selectivity for MC4R versus melanocortin-1 receptor (MC1R).
Early clinical strategy: SAD/MAD in healthy obese patients; later studies in HO and Prader-Willi
In the Q&A session, Spana described the phase 1 SAD/MAD studies as primarily safety-focused. For SAD, he said the company will look to confirm oral absorption/bioavailability, evaluate safety, and define a dosing window for PL7737. For the MAD portion, Spana said the company plans to enroll healthy obese patients and, in addition to safety, assess signals including body weight reduction, control of hyperphagia, and other obesity-related parameters.
When asked about Prader-Willi syndrome, Spana said it has “always been in the background” as a target indication, and he reiterated the company’s interest in larger orphan indications such as hypothalamic obesity and Prader-Willi syndrome rather than “micro-orphan” genetic conditions with smaller patient populations.
Wills provided additional timeline color, stating that phase 1 SAD/MAD data for the oral small molecule is expected by year-end and in the first half of next year for the long-acting peptide. He said subsequent studies in hypothalamic obesity and Prader-Willi syndrome for both programs would not start before mid-2027.
Spana also discussed how Palatin views oral and injectable options as complementary, noting that peptides can often drive higher efficacy than small molecules, while both formats may be needed for chronic, long-term treatment in these rare obesity disorders.
PL9643 sublicensing and combination-therapy optionality
Spana said the company sublicensed PL9643, a selective MC1R agonist with positive phase 3 clinical data in dry eye disease, to Altanispac Labs in January 2026. Wills said Palatin received approximately $3.8 million of upfront consideration in the form of non-cash debt cancellation. He said the amount is reflected in current liabilities as of December 31, 2025 and will be recognized as licensed revenue in the quarter ending March 31, 2026. Spana said the deal allows Palatin to sharpen its focus on obesity while retaining potential future participation through milestones and royalties.
Spana also pointed to preclinical and early clinical data supporting potential co-administration of MC4R agonists with GLP-1-based therapies, such as tirzepatide, describing it as longer-term positioning as obesity treatment paradigms evolve.
On operating expenses, Wills said the quarter included more than $2 million of “extraordinary” one-time items that the company does not expect to recur, related to “clean[ing] up a number of things” the company was not able to address prior to the financing.
About Palatin Technologies (NYSEAMERICAN:PTN)
Palatin Technologies, Inc (NYSE American: PTN) is a clinical-stage biopharmaceutical company focused on the development of receptor-targeted peptide therapeutics. The company concentrates on designing and advancing peptide- and small-molecule programs that selectively target specific receptor systems with the goal of treating endocrine, inflammatory and cardiovascular-related disorders. Palatin’s approach emphasizes receptor specificity to improve therapeutic profiles and reduce off-target effects commonly seen with less selective agents.
Palatin’s activities center on preclinical and clinical development, regulatory interaction and the pursuit of strategic partnerships or licensing arrangements to support late-stage development and commercialization.
