Palatin Technologies (PTN) is Ready to Soar; Roth Reaffirms 'Buy' Rating

Roth Capital issues commentary on Palatin Technologies (AMEX: PTN) while affirming its Buy rating and $6 price target.

Analyst Joseph Pantginis believes the sleeping giant is about to awaken. Key points to the analyst's thesis include strong randomized Phase II in FSD, positive FDA agreement on Phase III protocol design and, importantly, a high likelihood of one or more partners in the near term.

Pantginis continued: Coming off of statistically significant, randomized, Phase IIb data in FSD and positive FDA feedback regarding the design of the Phase III, partnering is at the forefront of our investment case. Partnering scenarios are based currently on the company’s stated to goals to deliver both a U.S. and ex-U.S. partner. The ex-U.S. potential is the one most in play. Recall that the company received a $1 million payment from an ex-U.S. company for an exclusive period to negotiate and complete their due diligence. Two primary gating factors included 1) the ex-U.S. company gaining comfort and “agreement” with the EMEA regarding the Phase III design and 2) complete their own internal marketing study for BMT. Palatin has stated that the company received what they needed regarding their discussions with the EMEA and are now in the midst of completing the internal marketing study. The exclusive license period for this ex-U.S. company expires on March 31, 2014. While we may not see a signed term sheet by that point, we believe we are in the final stages and that Palatin will deliver in the near term. Currently the company expects to target selecting a U.S. partner in 1H14 and negotiate a definitive agreement in 2H14. The Phase III program could start as early as 2Q14.

Bottom line: We believe that Palatin represents a significant value proposition based on 1) the promise of BMT in FSD, a large unmet medical need 2) increased partnering potential 3) important validation in hand with a large partnership with AstraZeneca for obesity and 4) strong pipeline growth potential.

For an analyst ratings summary and ratings history on Palatin Technologies click here. For more ratings news on Palatin Technologies click here.

Shares of Palatin Technologies closed at $1.23 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• JPMorgan Upgrades JetBlue Airways (JBLU) to Neutral, 'second least-liked airline based on sellside rating'
• Xperi Corporation (XPER) Issues Letter to Stockholders
• Morgan Stanley Downgrades Etsy (ETSY) to Underweight