Milestone from Gedeon Richter as Palatin initiates Ph III bremelanotide study

US biopharma company Palatin Technologies (NYSE MKT: PTN) says it has started its bremelanotide pivotal registration program, initiating its Phase III reconnect study in the USA for the treatment of female sexual dysfunction (FSD).

The start of the reconnect study in the USA triggers a development milestone payment of 2.5 million euros ($3 million) from Hungary’s largest drugmaker Gedeon Richter (RICHT: HB), Palatin's partner in Europe for bremelanotide for FSD. Palatin is also eligible to receive regulatory and sales milestones, and low double-digit royalties on net sales in the European licensed territory. Under the terms of the deal, Palatin is eligible for as much as 90 million euros in milestones and double-digit royalties.

"We are pleased to achieve this major milestone in the bremelanotide program with the initiation of our Phase III reconnect study in the USA," stated Carl Spana, president and chief executive of Palatin, adding: "This is a key step in our global strategy to bring bremelanotide to market for the millions of women who have FSD and are seeking a safe and effective treatment."