Palatin Reports Financial Results for the Third Fiscal Quarter of 2021 and Provides Corporate Update ● Phase 3 Clinical Study of PL9643 in Patients with Dry Eye Disease Planned for Second Half Calendar 2021 &#x25C

Palatin Reports Financial Results for the Third Fiscal Quarter of

2021 and Provides Corporate Update

Phase 3 Clinical Study of PL9643 in Patients with Dry Eye Disease

Planned for Second Half Calendar 2021

Phase 2 Clinical Study of PL8177 in Patients with Ulcerative

Colitis Planned for Second Half Calendar 2021

Vyleesi Gross Product Sales Up 89%, Net Revenue Up 154%,

Prescriptions Increased 24% Compared to Prior Quarter

$68.6 Million in Cash and Cash Equivalents as of March 31,

Teleconference and Webcast to be Held Today at 11:00 AM

CRANBURY, NJ May 17, 2021 Palatin (NYSE American:

PTN), a biopharmaceutical company developing first-in-class

medicines based on molecules that modulate the activity of the

melanocortin peptide receptor system, today announced results for

its third fiscal quarter ended March 31, 2021.

I am excited with Palatin's evolution

and development advancements utilizing our proprietary melanocortin

agonists to treat patients with inflammatory and autoimmune

conditions, stated Carl Spana, Ph.D., President and CEO

of Palatin. We are hosting a KOL webinar on May

to introduce our growing portfolio of

melanocortin agonists to treat the harmful effects of inflammation

in the eye. On the clinical front, we are targeting to commence a

Phase 3 trial of PL9643 in patients with dry eye disease in the

second half of calendar year 2021. The emerging profile of PL9643,

with its rapid therapeutic onset and excellent tolerability

profile, is a potentially distinct advantage over commercially

available dry eye therapies. In addition, we are targeting to

commence a Phase 2 study with an oral formulation of PL8177 in

ulcerative colitis patients in the second half of calendar year

I am also pleased with the progress we have made with the

Vyleesi program, continued Spana. Our quarter ended

March 31, 2021 reflected significant increases in gross sales, net

sales, prescriptions, and insurance coverage over the prior

Business Highlights and Updates

Anti-Inflammatory / Autoimmune Programs

for the treatment of dry eye disease (DED):

positive results from its Phase 2 clinical study reflecting

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. There were no safety signals

identified and PL9643 had excellent ocular

Phase 3 clinical trial is currently planned for the second half of

calendar year 2021, with data readout potentially in the first half

of calendar year 2022.

two presentations of the Company's melanocortin platform,

including Phase 2 clinical trial results for PL9643 in dry eye

disease and preclinical data in retinal disease, at the Association

for Research in Vision and Ophthalmology (ARVO) 2021 Annual

Meeting, held virtually May 1-7, 2021.

for the treatment of ulcerative colitis:

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

PL8177 in ulcerative colitis patients is targeted to start second

half of calendar year 2021, with data readout potentially in

mid-calendar year 2022.

Opinion Leader webinar planned for May 21, 2021 on melanocortin

agonists for treating ocular indications, with a primary focus on

PL9643 and data from the Company's recently completed Phase 2

clinical trial for dry eye disease:

the Company's growing portfolio of melanocortin agonists to

treat the harmful effects of inflammation in the eye.

Vyleesi (bremelanotide injection) / Hypoactive Sexual Desire

ended March 31, 2021 gross product sales increased 89%, net revenue

increased 154%, and prescriptions increased 24%, over the prior

quarter ended December 31, 2020.

marketing efforts expected to drive healthcare provider and

consumer engagement. The current digital campaign applications

reach thousands of healthcare providers and millions of

premenopausal women monthly and has resulted in increased website

and telemedicine traffic and conversions.

Company continues to focus on expanding access and reimbursement

coverage. The Company estimates that it has achieved approximately

75% of commercially insured lives and approximately 50% of

commercial formulary coverage, including two of the three major

pharmacy benefit managers and numerous regional plans.

increases and expanding access and reimbursement coverage have

resulted in more favorable gross-to-net adjustments and positive

quarterly net product revenue for the first time.

has filed an election to extend the patent term of U.S. patent

6,794,489 to June 26, 2025. This Vyleesi patent has claims to the

bremelanotide composition of matter as well as methods for

stimulating sexual response.

Third Quarter 2021 Results

Total net revenues, consisting of net product revenues of Vyleesi,

were $88,741. There was no revenue reported for the third quarter

gross sales amounted to $1,780,020, with net product revenue of

$88,741, net of allowances and accruals, compared to gross sales

for the prior quarter ended December 31, 2020 of $943,950, with net

product revenue of $(163,971), net of allowances and

Total operating expenses were $6.6 million, compared to $5.7

million for the same period in 2020. The increase was mainly due to

commercial expenses related to Vyleesi.

Palatin's net loss was $(5.7) million, or $(0.02) per share,

compared to a net loss of $(5.4) million, or $(0.02) per share, for

the comparable quarter of 2020.

As of March 31, 2021, the Company had $68.6 million in cash and

cash equivalents and $1.9 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

Conference Call / Webcast