It’s a great start to the week for Palatin Technologies (NYSE:PTN). The biotech player’s partner AMAG Pharmaceuticals revealed this morning an NDA green light for lead asset bremelanotide for hypoactive sexual desire disorder (HSDD) in premenopausal women. A PDUFA date with destiny is slated for March 23rd of next year with an AdCom meeting anticipated before the close of 2018. On a key note, the NDA approval has set into motion a whopping $20 million milestone payment to Palatin, excluding contract costs incurred by AMAG.
H.C. Wainwright analyst Joseph Pantginis cheekily responds saying it is time to “have a drink and cash a drink,” calling the milestone payment “triggered” important for PTN.
In reaction to the accepted NDA for the company’s female health drug, the analyst reiterates a Buy rating on PTN stock with a $5 price target. This implies 327% upside from current levels. (To watch Pantginis ‘ track record, click here)
“The key activity for AMAG and Palatin remains prepping for the anticipated AdCom projected in 4Q18. Overall the panel, in our belief, should be straightforward with likely questions to include: (1) how is the drug to be used, including comments on the intermittent dosing profile; (2) labeling, which we anticipate being driven by the two positive Phase 3 studies; and (3) comments on the overall safety profile; recall no safety issues emerged from the large Phase 2b and Phase 3 studies. In addition to the strong clinical data and the safety profile, we believe the public comment period around the AdCom should be quite visible in bringing attention to the disorder as well as highlighting the drug’s true differentiation vs. Addyi. Further, we believe AMAG would eventually pursue a Direct to Consumer (DTC) marketing campaign and already has a website to bring attention to the disorder,” highlights Pantginis.
Moving forward, business development continues to be pivotal to PTN’s bremelanotide, adds the analyst. The PTN team has noted it continues to spur chats with various contacts in the intent of reaching one or further alliances in the back half of the year for its female health drug. As far as Pantginis believes, a significant “value driver” for PTN stock points to a partnership in the E.U, which the analyst forecasts “should happen this year.”
Bottom line, there remains an absolute “disconnect” between the company’s potential and its current valuation, concludes Pantginis, who sees a “desrisked” as well as “compelling opportunity for investors.”
TipRanks shows off enthusiastic initial word from sell-side analysts on the Street regarding this biotech player, with all 3 analysts polled over the last 12-months rating a Buy on PTN stock. With a return potential of 256%, the stock’s consensus target price stands at $4.17.