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PT-141 is Palatin’s novel drug candidate for the treatment of male and female sexual dysfunction. First in a new class of therapies called melanocortin agonists, PT-141 has shown promise in effectively treating erectile dysfunction (ED) without the cardiovascular effects found in ED drugs currently available. PT-141 works through a mechanism of action involving the central nervous system rather than directly on the vascular system. As a result, it may offer significant safety and efficacy benefits over currently available products. To date, PT-141 has shown positive results in four Phase 2 efficacy studies enrolling more than 300 men. Palatin has also conducted a Phase 1 study in 32 premenopausal women without sexual dysfunction, in which the drug was shown to be safe and well tolerated. A Phase 2A pilot clinical study evaluating PT-141 in pre-menopausal women diagnosed with female sexual dysfunction (FSD) has shown encouraging results.

In August 2004, Palatin formed a collaboration with King Pharmaceuticals to jointly develop and commercialize PT-141 in North America for both male and female sexual dysfunction. Palatin and King will jointly seek a partner for PT-141 for territories outside of North America and will jointly share in development and marketing costs and all revenues generated from those territories.