Palatin and AMAG Pharma agree to terminate Vyleesi deal

US biopharma firm Palatin Technologies (NYSE American: PTN) has mutually terminated the January 2017 license agreement which granted AMAG Pharmaceuticals (Nasdaq: AMAG) exclusive North American rights to market Vyleesi (bremelanotide), the first and only on demand treatment for pre-menopausal women suffering from acquired, generalized, hypoactive sexual desire disorder (HSDD), a condition affecting one in 10 premenopausal women.

The news saw Palatin shares gain almost 8% to $0.60 by early afternoon, while AMAG’s shares fell 4.3% to $9.57.

Dubbed ‘female Viagra, Vyleesi was approved by the US Food and Drug Administration in June last year, which triggered a $60 million payment obligation to Palatin by AMAG.