Forward-looking Statements Statements in this press release that are not historical facts, including statements about future expectations of Palatin Technologies, Inc., such as statements about market potential of Palati

Palatin Technologies, Inc. Reports Second Quarter

Fiscal Year 2021 Financial Results and Recent Business

Positive Results from Phase 2 Clinical Study of PL9643 in Patients

with Dry Eye Disease

Continue to Rebuild Commercial Infrastructure

and Brand Awareness for Vyleesi

Approximately $72.2 Million in Cash and Cash Equivalents

Teleconference and Webcast to be held on February 17, 2021 at 11:00

CRANBURY, NJ February 17, 2021 Palatin

Technologies, Inc. (NYSE American: PTN), a specialized

biopharmaceutical company developing first-in-class medicines based

on molecules that modulate the activity of the melanocortin and

natriuretic peptide receptor systems, today announced results for

its second quarter ended December 31, 2020.

Second Quarter Ended December 31, 2020 Financial

loss for the quarter was $(10.0) million, or $(0.04) per share,

compared to a net loss of $(5.2) million, or $(0.02) per share for

the comparable quarter of 2019;

increase in net loss was primarily attributable to commercial

expenses related to Vyleesi and to PL9643's Phase 2 study for

the treatment of dry eye disease.

As of December 31, 2020, the Company had $72.2

million in cash and cash equivalents and $4.7 million in accounts

receivable, compared to $82.9 million in cash and cash equivalents

and no accounts receivable as of June 30, 2020, with no outstanding

Business Highlights and Updates

Hypoactive Sexual Desire Disorder (HSDD) / Vyleesi

(bremelanotide injection)

gross sales for the quarter ended December 31, 2020 amounted to

$943,950. Vyleesi product revenue was $(163,971), net of allowances

and accruals. Vyleesi gross sales for the period July 25 to

September 30 amounted to $809,100. Vyleesi product revenue was

$(288,560), net of allowances and accruals;

the distribution network and procedures improving the patient

experience; expanded contact with prescribers and healthcare

providers through virtual meetings; increased insurance

reimbursement coverage; and initiated a highly selective digital

marketing and telemedicine campaign to rebuild awareness and demand

among pre-menopausal women with a geo-targeting

Anti-Inflammatory / Autoimmune Programs

positive results in its Phase 2 study of PL9643 for the treatment

of dry eye disease (DED);

statistically significant improvements in multiple signs and

symptoms in the moderate to severe patient population after 2 weeks

of dosing and at the 12-week visit.

were no safety signals identified and PL9643 had excellent ocular

significance for the primary endpoints was not reached in the

overall enrolled population that included mild, moderate, and

severe patients, as measured at the 12-week primary evaluation

Phase 2/3 Clinical trial with PL9643 for the treatment of DED is

currently planned for mid-calendar year 2021;

an international patent application under the Patent Cooperation

Treaty (PCT) directed to the composition of PL9643 and a related

family of melanocortin agonist peptides; and

Phase 2 proof-of-concept clinical study with an oral formulation of

PL8177 in ulcerative colitis patients is targeted to start

mid-calendar year 2021, with data readout potentially in

mid-calendar year 2022.

Working through the melanocortin system, PL9643 is a novel

approach to treating dry eye disease. The emerging profile of

PL9643, with its rapid therapeutic onset and excellent tolerability

profile, is a potentially distinct advance in dry eye

therapy," stated Carl

Spana, Ph.D., President and CEO of Palatin. "The positive PL9643 Phase 2 study results identify

the most appropriate patient population, endpoints, and timepoints

for the next study, which is a Phase 2/3 study targeted for

mid-calendar year 2021, with data readout in the first half of

calendar year 2022. Regarding Vyleesi, our measured plan and

investment is showing positive trends and returns with a

significant rise in payer reimbursement and double-digit increases

to month over month prescription numbers continuing through January

Conference Call / Webcast

Palatin will host a conference call and audio webcast on February

17, 2021 at 11:00 a.m. Eastern Time to discuss the quarter ended December 31, 2020 results of

operations in greater detail and provide an update on corporate

developments. Individuals interested in listening to the conference

call live can dial 1-866-248-8441 (US/Canada) or 1-856-344-9206

(international), conference ID 2203098. The audio webcast and

replay can be accessed by logging on to the

Investor/Webcasts section of Palatin's website

at http://www.palatin.com. A telephone and audio webcast replay

will be available approximately one hour after the completion of

the call. To access the telephone replay, dial 1-888-203-1112

(US/Canada) or 1-719-457-0820 (international), passcode 2203098.

The webcast and telephone replay will be available through February

About Palatin Technologies, Inc.

Palatin Technologies, Inc. is a specialized biopharmaceutical

company developing first-in-class medicines based on molecules that

modulate the activity of the melanocortin and natriuretic peptide

receptor systems, with targeted, receptor-specific product

candidates for the treatment of diseases with significant unmet

medical need and commercial potential. Palatin's strategy is

to develop products and then form marketing collaborations with

industry leaders to maximize their commercial potential. For

additional information regarding Palatin, please visit

Palatin's website at www.Palatin.com.

Forward-looking Statements

Statements in this press release that are not historical facts,

including statements about future expectations of Palatin

Technologies, Inc., such as statements about market potential of