Palatin Technologies, Inc. Reports First Quarter Fiscal Year 2021 Results and Provides Business Update ● Regained North American Rights to Vyleesi® for HSDD with Palatin Receiving $12 Million from AMAG Plus $

Palatin Technologies, Inc. Reports First Quarter

Fiscal Year 2021 Results and Provides Business Update

Regained North American Rights to Vyleesi for HSDD with

Palatin Receiving $12 Million from AMAG Plus $4.3 Million Due March

Phase 2 Clinical Results of PL9643 for the Treatment of Dry Eye

Disease on Track for December 2020

$86.6 Million in Cash and Cash Equivalents as of September 30,

Conference Call Today at 11:00 AM ET

CRANBURY, NJ November 17, 2020 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 first quarter ended September 30, 2020.

First Quarter Ended September 30, 2020 Financial

quarter was $(3.9) million, or $(0.02) per share, compared to a net

loss of $(4.5) million, or $(0.02) per share for the comparable

sales for the period July 25 to September 30 amounted to $809,100.

Recognized $(288,560) in Vyleesi product revenue, net of allowances

no contract and license revenue for the quarter, compared to

$97,379 for the comparable quarter of 2019;

operating expenses for the quarter were $3.7 million, including a

$1.6 million gain on the license termination agreement, compared to

$5.0 million for the comparable quarter of 2019;

of September 30, 2020, the Company had $86.6 million in cash and

cash equivalents and $5.0 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

Highlights and Updates

regained exclusive North American rights to market Vyleesi

(bremelanotide injection), the first and only on demand treatment

for premenopausal women suffering from acquired, generalized,

hypoactive sexual desire disorder (HSDD), a condition affecting one

in ten premenopausal women;

activities: solidified the distribution network and procedures,

improved 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 initial geo-targeting to top prescriber and digital

enrollment of a Phase 2 clinical study with PL9643 for the

treatment of dry eye disease (DED). Data readout expected December

proof-of-concept clinical study with an oral formulation of PL8177

in ulcerative colitis patients is targeted to start in the first

half of calendar year 2021.

We have made significant progress and improvement on Vyleesi

commercial activities, specifically around insurance reimbursement

and expanded coverage. This put us in the proper position as we

initiated a targeted marketing digital campaign to raise condition

and treatment awareness with premenopausal women,

stated Carl Spana, Ph.D.,

President and CEO of Palatin.

"Despite the challenges posed by the ongoing viral pandemic, we are

on track for data readout next month on our PL9643 Phase 2 clinical

study in subjects with dry eye disease. Most people living with dry eye disease suffer

from episodic flare-ups. These flares can be caused by a multitude

of triggers and frequently are not sufficiently addressed by

Hypoactive Sexual Desire Disorder (HSDD) / Vyleesi

(bremelanotide injection)

In July 2020, Palatin announced the mutual termination of its

License Agreement with AMAG Pharmaceutical, Inc, for Vyleesi. Under

the termination agreement, Palatin regained all North American

development and commercialization rights for Vyleesi. AMAG made a

$12.0 million payment to Palatin at closing and will make a $4.3

million payment to Palatin on March 31, 2021. Palatin assumed all

Vyleesi manufacturing agreements, and AMAG transferred information,

data, and assets related exclusively to Vyleesi, including existing

inventory. AMAG is providing certain transitional services to

Palatin for a period to ensure continued patient access to Vyleesi

and regulatory compliance during the transition back to Palatin.

Palatin is reimbursing AMAG for the agreed upon costs of the

transition services.

Palatin is exploring its options to enhance the commercialization

of Vyleesi, including discussions with potential collaboration

partners that currently market female healthcare products. Palatin

continues collaboration discussions for territories outside the

currently licensed territories of China and Korea and anticipates

executing multiple agreements through calendar year

The Company's strategy implements an informed and highly targeted

approach to marketing, focusing on telemedicine, social media, and

digital advertising. The Company is committed to working with

payers and healthcare professionals to ensure women with HSDD have

continued and affordable access to Vyleesi. Vyleesi remains

commercially available through specialty pharmacies Avella and

BioPlus. Patients also can connect with a healthcare provider

through telemedicine. Patients and healthcare providers can learn

more about HSDD and Vyleesi at www.vyleesi.com.

is the first FDA-approved product for the as-needed treatment for

premenopausal women who experience distress or interpersonal

difficulty due to low sexual desire. This treatment is available as

a subcutaneous self-injection in a prefilled disposable

autoinjector pen for use in anticipation of a sexual

Anti-Inflammatory / Autoimmune Programs

Enrollment in a Phase 2 clinical study with PL9643 for the

treatment of dry eye disease was completed in August 2020. Data

readout is targeted for December of 2020. If results from the Phase 2 study support

advancing to Phase 3, the Company will initiate a Phase 3 efficacy

study as early as mid-calendar year 2021.

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

of PL8177 in ulcerative colitis patients is targeted to start in