Palatin Technologies, Inc. (AMEX: PTN), based in Cranbury, announced that it has taken steps to reduce its workforce by 30 percent, resulting in annual savings of $4 million. The downsizing, which leaves Palatin with 64 employees, will provide it with the greatest opportunity for near-term success of its priority programs, according to a company release. Palatin will take an estimated $500,000 charge for severance payments in the quarter ending Sept. 30, 2007.
”Though it is regrettable to have to reduce our work force, concentrating our efforts on value drivers and matching our resources to those projects with the highest potential for near-term value is our immediate priority,” stated Carl Spana, Palatin president and chief executive officer.
The downsizing decision follows recent responses from representatives of the U.S. Food and Drug Administration (FDA), which raised serious concerns about the acceptable benefit/risk ratio to support the progression of bremelanotide, a drug under development for male sexual dysfunction, into Phase 3 studies for erectile dysfunction as a first-line therapy in the general population, according to Palatin.
Palatin said it has engaged the FDA in discussions in order to determine next steps related to the further development of bremelanotide for the treatment of male sexual dysfunction.
Separately, Palatin announced positive results from an at-home Phase 2 trial evaluating bremelanotide for the treatment of female sexual arousal disorder.
”We are pleased with the overall data from this exploratory trial. The efficacy response was consistent and robust across all domains, particularly desire and arousal. We look forward to discussing the program’s further development with the FDA, including future dose-ranging studies to improve the drug’s benefit/risk profile,” stated Dr. Trevor Hallam, executive vice president of research & development for Palatin.