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Palatin Technologies Provides Update Regarding Its Obesity Research/Development Collaboration with AstraZeneca
Date:9/7/2012

CRANBURY, N.J., Sept. 7, 2012 /PRNewswire/ -- Palatin Technologies, Inc. (NYSE MKT: PTN) today announced that its collaboration partner,  AstraZeneca, has decided to discontinue further development of AZD2820, one of a number of collaboration compounds in various stages of development for the treatment of obesity.  AstraZeneca remains committed to this collaboration program and to the continued advancement of melanocortin agonists for treatment of obesity.

AZD2820, a subcutaneously-administered peptide melanocortin-4 receptor partial agonist, was a clinical candidate under development by AstraZeneca from a collaborative research program with Palatin Technologies. As previously announced, a Phase I trial of AZD2820 was halted following a serious adverse event. The decision to discontinue development of the compound was made based on investigations and review conducted by AstraZeneca that followed this incident. While not confirmed, it could not be excluded that the serious adverse event was linked to AZD2820. The investigation further concluded that it is unlikely that the serious adverse event was related to melanocortin receptor activation as an approach for the treatment of obesity.

"We are pleased that the subject has fully recovered from this adverse event," said Dr. Carl Spana, President and Chief Executive Officer of Palatin. "The AZD2820 compound is part of a broader research and development collaboration with AstraZeneca. We have multiple classes of collaboration compounds in various stages of preclinical testing and AstraZeneca has informed us that they remain committed to the advancement of collaboration compounds for treatment of obesity."

Pursuant to the terms of the research collaboration and license agreement with AstraZeneca, Palatin is eligible for milestone payments upon achieving development and regulatory milestones and further payments on achievement of sales targets, in addition to royalties on sales of app
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