Why Palatin Is Still A Buy

Palatin Technologies, Inc.

spiked dramatically today in response to yesterday's FDA approval of Sprout Pharmaceuticals' female sexual dysfunction drug, flibanserin. Roth Capital Analyst Joe Pantginis published a report this morning predicting that the ruling would reduce regulatory overhangs blocking the approval of Palatin's own FSD drug, bremelanotide (BMT). Many investors seemed to agree, as PTN share prices jumped by as much as 50 percent this morning. In a conversation with Benzinga, Pantginis chalked up the strong market reaction to surprise over the FDA ruling. He said investors may not have been expecting the flibanserin approval because of "the convoluted history that the drug has had with regulators." According to him, it had been turned down multiple times by the agency before Thursday's decision. BMT vs. Flibanserin Despite the strong market reaction, however, Pantginis still sees Palatin as a buy. According to him, Palatin and Sprout are the only two producers of a drug for female sexual dysfunction, and BMT has a sizeable edge over flibanserin. Specifically, he say, BMT doesn't have any of the major dangerous side effects that may turn patients away from flibanserin. Furthermore, he noted, Sprout's drug comes as a chronic daily use prescription while Palatin's version can be taken on demand. Bullish on Biotech In addition to his positive outlook on BMT, Pantginis thinks that Palatin could be boosted by a general upswing in the biotech industry. He says that big pharmaceutical players are sharply scaling back their research and development divisions, instead opting to look to smaller biotech companies to fill these R & D channels. A bulk of M&A activities between pharmaceutical corporations and biotech firms should bolster the industry, according to Pantginis.