Palatin Technologies, Inc. (NYSEMKT:PTN) and Shanghai Fosun Pharmaceuticals (Group) have signed a licensing agreement to manufacture and commercialize the bremelanotide drug, which treats Female Sexual Dysfunction (FSD) conditions in China and other selected territories including the Taiwan, Hong Kong, S.A.R. and Macau S.A.R.
Under the terms of the agreement, Fosun Pharma will cater for all the costs related to the production and will be responsible for developing and commercializing the product in the region. Palatin will receive $5 million upfront with an addition of $7.5 million milestone payment subject to the approval of the product by the regulatory body in China approves. Palatin has the potential to obtain over $92.5 million in sales-related milestones and both high and low royalties on net sales in the territories licensed to distribute the drugs.
Palatin announced recently the positive Phase 3 findings for Bremelanotide designed for treating hypoactive sexual desire disorder (HSDD) found in premenopausal women. The New Drug Application (NDA) is expected to be approved by the US Food and Drug Administration (FDA) at the beginning of next year. The costs related to development, regulatory, sales and marketing and other business activities costs will be fully catered for by the Fosun Pharma.
Carl Spana, the president and CEO of Palatin stated that partnering with Fosun Pharma will help them increase the awareness and understanding the use of HSDD and the impending benefits of using bremelanotide to both the health care practitioners and patients. With Fosun Pharma’s essential resources and capabilities, Palatin is certain that the company will carry on their global strategy of reaching out to millions of women across the world that are suffering from the FSD and are seeking access to safe treatment.
According to Yifang Wu, the CEO of Fosun Pharma, the company is delighted to partner with Palatin to further promote the advancement of Bremelanotide program within China and other territories in the region. The female healthcare is a critical area of the growth strategy of the company and the partnership will help them address huge unmet medical needs of women with FSD.