CRANBURY, N.J., Sept. 26 Palatin Technologies,Inc. (Amex: PTN) (the Company) today announced it has taken steps to reduceits workforce by 30%, resulting in annual savings of $4 million. Thedownsizing, which leaves the Company with 64 employees, will provide theCompany with the greatest opportunity for near-term success of its priorityprograms. Palatin will take an estimated $500,000 charge for severancepayments in the quarter ending September 30, 2007.
"Though it is regrettable to have to reduce our work force, concentratingour efforts on value drivers and matching our resources to those projects withthe highest potential for near-term value is our immediate priority," statedCarl Spana, Ph.D., President and Chief Executive Officer of Palatin.
The downsizing decision follows recent responses from representatives ofthe U.S. Food and Drug Administration (FDA), which raised serious concernsabout the acceptable benefit/risk ratio to support the progression ofbremelanotide, a drug under development for male sexual dysfunction, intoPhase 3 studies for erectile dysfunction as a first-line therapy in thegeneral population.
Palatin has engaged the FDA in discussions in order to determine nextsteps related to the further development of bremelanotide for the treatment ofmale sexual dysfunction. Regarding the development of bremelanotide for thetreatment of female sexual dysfunction, Palatin has completed an exploratoryat-home Phase 2 clinical trial in pre- and post-menopausal women, and theCompany will be releasing the results later this month.
In addition to bremelanotide, Palatin will continue to focus on itspipeline programs, primarily a collaboration with AstraZeneca for thedevelopment of compounds to treat obesity, and the advancement of a leadclinical candidate for the treatment of congestive heart failure, for whichthe Company anticipates an effective Investigational New Drug (IND)Application with the FDA by the end of this calendar year.
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, isdefined in the Private Securities Litigation Reform Act of 1995. The Companyintends that such forward-looking statements shall be subject to the safeharbors created thereby. Palatin's actual results may differ materially fromthose discussed 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), a