CRANBURY, N.J., Sept. 12 Palatin Technologies,Inc. (Amex: PTN) stated today that the press release issued on September 11,2007 by Competitive Technologies, Inc. (Amex: CTT) relating to a materialbreach and termination of a license agreement was false and misleading.
The press release issued by CTT stated that "Competitive TechnologiesTerminates License Agreement with Palatin Technologies." However, the Noticeof Termination sent by CTT to Palatin the day before expressly stated Palatinhad "sixty (60) days from the date of this letter to cure" the allegeddefaults. The statement made by CTT that the underlying license agreementbetween Palatin and CTT had been terminated is false and misleading.
The underlying Palatin/CTT license agreement relates to patent rights forcompounds and methods used for treatment of sexual dysfunction, including acompound called melanotan-II (MT-II) or PT-14. Palatin ceased development ofPT-14 in 2000 and has no plans for further development of the compound.Palatin's bremelanotide compound was independently developed and patented byPalatin, and Palatin believes that bremelanotide is not covered by any ofCTT's patents or patent rights. Whether bremelanotide is subject to thelicense agreement is an issue in an ongoing arbitration proceeding initiatedby CTT in June 2006.
Palatin received a Notice of Termination on this matter from CTT in thelate afternoon of September 10, 2007. The Notice of Termination alleges thatPalatin has breached the Palatin/CTT agreement as a result of an amendment inDecember 2005 to the Collaborative Development and Marketing Agreement betweenPalatin and King Pharmaceuticals, Inc. (NYSE: KG). Palatin disputes that theamendment breaches the Palatin/CTT agreement in any way. Nevertheless, duringthe morning of September 10, 2007, Palatin announced via a press release andconference call that the King agreement had been terminated. Therefore, anyalleged breach to the Palatin/CTT license agreement was eliminated by thetermination of the King agreement, which was announced prior to CTT sendingNotice of Termination.
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.
SOURCE Palatin Technologies, Inc.