Canaccord analyst John Newman speculates on Palatin Technologies, Inc. (NYSEMKT:PTN) ahead of clinical data and partnership updates with a bullish forecast, reiterating a Buy rating on shares of PTN with a $6 price target, which represents a nearly 1,043% increase from where the stock is currently trading.
Though secondary endpoint analysis, which includes data for satisfying sexual events (SSEs) has not yet been completed, the analyst anticipates that once the data is available, it will be released at a scientific venue. The analyst believes it to be likely that the data read-out will be presented by first quarter of 2017. With regards to what this data will entail for the biotech firm, Newman notes, “We await details from Palatin regarding timing, and expect the data to support the positive benefit seen in Phase 2b studies.”
When considering partnership prospects for the firm, Newman recognizes multiple options on the table, asserting, “We expect a partnership for Palatin near term, and note that potential partners have access to the raw data and can perform their own analyses under CDA. Palatin outlined three potential scenarios: (1) traditional partnership with up-front, milestones, and royalty on sales, (2) sale of the bremelanotide asset, (3) sale of the entire company. Palatin does not intend to take a significant role in commercialization of the drug.”
Though competitor Addyi, another drug targeting Hypoactive (low) Sexual Desire Disorder (HSDD) recently was approved by the FDA, the approval brings along with it multiple restrictions leading to “poor uptake.” The analyst draws a clear distinction between Addyi and PTN’s drug, bremelanotide, also designed as a treatment for female sexual dysfunction (FSD), maintaining that it is “strongly differentiated.”
Overall, “We expect secondary endpoints for bremelanotide such as satisfying sexual events (SSEs) to be positive, and we also expect a near-term partnership announcement for the drug,” Newman contends.
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, analyst John Newman is ranked #4,097 out of 4,214 analysts. Newman has a 37% success rate and faces a loss of 9.5% in his annual returns. When recommending PTN, Newman forfeits 22.3% in average profits on the stock.
TipRanks analytics demonstrate PTN as a Buy. Out of two analysts polled by TipRanks, both are bullish on Palatin stock. With a return potential of 1,150%, the stock’s consensus target price stands at $6.50.