Palatin Tech Says AstraZeneca Halts Further Development of Obesity Drug

   By Anna Prior 
 

Palatin Technologies Inc. (PTN) said its collaboration partner AstraZeneca PLC (AZN, AZN.LN) has decided to discontinue further development of an obesity drug after a clinical trial for the treatment was halted as a man enrolled in the study became ill.

AstraZeneca's safety review committee in June halted the Phase 1 trial of AZD2820 after a serious adverse event was reported. The affected subject, who may have suffered an allergic reaction after his first dose, was treated at the site and fully recovered.

Palatin said the decision to stop development of the drug was made based on investigations and reviews conducted by AstraZeneca--the U.K.'s second-biggest drug company--after the incident, adding that while the firm couldn't confirm that the adverse event was linked to AZD2820, it also could not be excluded.

The company also said the investigation determined that it is unlikely that the serious adverse event was related to melanocortin receptor activation as an approach for the treatment of obesity.

"The AZD2820 compound is part of a broader research and development collaboration with AstraZeneca," said Palatin Chief Executive Carl Spana. "We have multiple classes of collaboration compounds in various stages of preclinical testing and AstraZeneca has informed us that they remain committed to the advancement of collaboration compounds for treatment of obesity."

Under the terms of collaboration with AstraZeneca, Palatin is eligible for milestone payments upon reaching certain developments, in addition to royalties on sales. AstraZeneca has responsibility for the drug's commercialization, and discovery and development costs.

Palatin shares closed Thursday at 64 cents and were inactive premarket. The stock is up 59% so far this year.

AstraZeneca's American depositary shares were down 0.8% to $46.63 in light premarket trading. Through Thursday's close, they were up 1.5% since the start of the year.

Write to Anna Prior at [e-mail]

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