Palatin Technologies Announces Extension of Research Collaboration and License Agreement with AstraZeneca
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Palatin Technologies, Inc. has announced an extension of its exclusive research collaboration and license agreement with AstraZeneca to discover, develop and commercialize compounds that target melanocortin receptors and the signing of a clinical trial sponsored research agreement.
Under the extension to the license agreement, Palatin will receive an upfront payment of $1.6 million and AstraZeneca has been granted licenses to additional compounds and patents.
Additionally, the research collaboration term has been extended, with Palatin contributing scientific expertise and AstraZeneca supporting Palatin's internal activities at an agreed full-time equivalent rate.
Under the clinical trial sponsored research agreement, Palatin will be responsible for conducting a study of the effects of melanocortin receptor specific compounds on food intake, obesity and other metabolic parameters.
Palatin will be eligible, in the near future, for milestone payments totaling $5 million in connection with the collaboration and license agreement.
Under terms of the original collaboration and license agreement signed in January 2007, Palatin received an upfront payment of $10 million from AstraZeneca and is eligible for milestone payments totalling $300 million, with up to $180 million contingent upon development and regulatory milestones and the balance on achievement of sales targets, together with the payment of stepped royalties on product sales to double digit rates, dependent on sales achieved. AstraZeneca is responsible for product commercialization, product discovery and development costs.
