CRANBURY, N.J., Jan. 22 Palatin Technologies,Inc. (Amex: PTN) announced today that it entered into an agreement to settleall outstanding litigation and disputes with Competitive Technologies, Inc.(Amex: CTT) related to a license agreement between the companies. Under theterms of the settlement, Palatin retains all rights to bremelanotide, itspeptide in clinical development for male erectile dysfunction and femalesexual dysfunction, with no obligations for any future payments to CompetitiveTechnologies.
Both the pending arbitration initiated by Competitive Technologies and theaction in Connecticut Superior Court will be dismissed with prejudice. Theexisting license agreement between Palatin and Competitive Technologies hasbeen terminated, with Competitive Technologies receiving all rights to apeptide developed at the University of Arizona and called MT-II or PT-14,which Palatin ceased developing in 2000. As part of the settlement, Palatinremitted a one-time payment to Competitive Technologies of $800,000.
"We are pleased that Palatin's full rights to bremelanotide are no longerin question," stated Carl Spana, Ph.D., President and Chief Executive Officerof Palatin. "Facing significant legal costs in the coming months inpreparation for the actual arbitration hearing and removing the uncertaintyinherent in litigation were the driving factors for Palatin to settle thisongoing dispute. With this favorable outcome and the matter now behind us, welook forward to continuing to develop bremelanotide and our other productcandidates."
Palatin owns patents, issued in the United States and foreign countries,which claim bremelanotide and use of bremelanotide in treating sexualdysfunction. Palatin's United States patents for bremelanotide do not expireuntil 2020 or later.
About Palatin Technologies, Inc.
Palatin Technologies, Inc. is a biopharmaceutical company focused ondiscovering and developing targeted, receptor-specific small molecule andpeptide therapeutics. The Company's internal research and developmentcapabilities, anchored by its proprietary MIDAS(TM) technology, are fuelingproduct development. Palatin's strategy is to develop products and then formmarketing collaborations with industry leaders in order to maximize theircommercial potential. The Company currently has collaborations withAstraZeneca and the Mallinckrodt division of Covidien. For additionalinformation regarding Palatin, please visit Palatin Technologies' website athttp://www.palatin.com.
Statements about the Company's future expectations, including statementsabout its development programs, proposed indications for its productcandidates, pre-clinical activities, marketing collaborations, and all otherstatements in this document other than historical facts, are "forward-lookingstatements" within the meaning of Section 27A of the Securities Act of 1933,Section 21E of the Securities Exchange Act of 1934 and as that term is definedin the Private Securities Litigation Reform Act of 1995. The Company intendsthat such forward-looking statements shall be subject to the safe harborscreated thereby. Palatin's actual results may differ materially from thosediscussed in the forward-looking statements for various reasons, including,but not limited to the Company's ability to fund development of itstechnology, ability to establish and successfully complete clinical trials andpre-clinical studies and the results of those trials and studies, dependenceon its partners for certain development activities, need for regulatoryapprovals and commercial acceptance of its products, ability to recommencemarketing and gain commercial acceptance of NeutroSpec(R), ability to protectits intellectual property, and other factors discussed in the Company'speriodic filings with the Securities and Exchange Commission. The Company isnot responsible for upd