September 30, 2009 (FinancialWire) — Palatin Technologies, Inc. (AMEX: PTN) (Current Market Cap: $29.46 Mil.) said it will receive $5 million from British drugmaker AstraZeneca (NYSE: AZN) relating to an amendment of its ongoing exclusive research collaboration and license agreement.

The agreement calls for Palatin to discover, develop and commercialize compounds that target melanocortin receptors for treatment of obesity and related indications.

Under the terms of the amendment to the parties’ collaboration agreement, AstraZeneca has agreed to make a $2.5 million payment upon signing and, subject to completion of certain tasks relating to the program, $2.5 million in the first quarter of calendar year 2010.

The terms of an original collaboration and license agreement the companies signed in January 2007 relating to milestone payments and royalty rates were restructured.

Palatin said it has completed an exploratory clinical study with a melanocortin receptor compound and has also agreed to conduct additional clinical studies under a clinical trial sponsored research agreement to be funded by AstraZeneca.

Researchers at Palatin and AstraZeneca are continuing to complete selection of a lead drug candidate for further commercial development. Under the agreement, AstraZeneca is responsible for product commercialization as well as product discovery and development costs.

Cranbury, New Jersey-based Palatin Technologies is a biopharmaceutical company focused on discovering and developing targeted, receptor-specific small molecule and peptide therapeutics.

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