Palatin Technologies, Inc. Reports Third Quarter Fiscal Year 2017 Results; Teleconference and Webcast to be held on

Palatin Technologies, Inc. Reports Third Quarter

Fiscal Year 2017 Results;

Teleconference and Webcast to be held on May 16, 2017

CRANBURY, NJ May 16, 2017 Palatin Technologies,

Inc. (NYSE MKT: PTN), a biopharmaceutical company developing

targeted, receptor-specific peptide therapeutics for the treatment

of diseases with significant unmet medical need and commercial

potential, today announced results for its third quarter ended

Quarter and Recent Highlights

- Under development for Hypoactive

Sexual Desire Disorder (HSDD):

2016 reported positive Phase 3 clinical results - both pivotal

trials met the pre-specified co-primary efficacy endpoints of

improvement in desire and decrease in distress associated with low

an exclusive North American license agreement with AMAG

Pharmaceuticals to develop and commercialize bremelanotide in

$60 million upfront payment

closely with AMAG on completing the tasks and activities necessary

to file a New Drug Application (NDA) with the Food and Drug

Administration (FDA).

NDA filing with the FDA for the first quarter of calendar year

Notice of Allowance was issued by the U.S. Patent and Trademark

Office (USPTO) on a patent for methods of treating female sexual

dysfunction and HSDD with bremelanotide. Once issued the patent

will have a term to November 2033.

"Meeting our Phase 3 co-primary endpoints with bremelanotide and

licensing the North American rights to AMAG were truly

transformational for Palatin," said Stephen T. Wills, chief

operating officer and chief financial officer of Palatin

Technologies. "In addition to advancing the activities required to

file an NDA with the FDA, we are progressing with discussions and

negotiations with potential partners for other regions around the

globe for bremelanotide. We are also excited to now be able to

devote resources and attention to our other development programs,

which address indications such as heart failure, ophthalmic

disorders and inflammatory bowel diseases using targeted,

receptor-specific peptides which we developed."

(Financial Statement Data Follows)

Third Quarter Fiscal 2017 Financial Results

Palatin reported a net loss of $(3.6) million, or $(0.02) per basic

and diluted share, for the quarter ended March 31, 2017, compared

to a net loss of $(12.7) million, or $(0.08) per basic and diluted

share, for the same period in 2016.

The difference between the three months ended March 31, 2017 and

2016 was primarily attributable to the recognition of $10.8 million

in contract revenue pursuant to our license agreement with

For the quarter ended March 31, 2017, Palatin recognized $10.8

million in contract revenue related to our license agreement with

AMAG. There were no revenues recorded in the quarter ended March

Total operating expenses for the quarter ended March 31, 2017 were

$13.8 million compared to $12.1 million for the comparable quarter

of 2016. The increase in operating expenses was predominately

attributable to professional services incurred related to closing

our license agreement with AMAG.

Other Income/Expense

Total other income (expense), net, was $(0.6) million for the

quarters ended March 31, 2017 and 2016 consisting mainly of

interest expense related to venture debt.

Palatin's cash, cash equivalents and investments were $55.4

million as of March 31, 2017, compared to cash, cash equivalents

and investments of $9.4 million at June 30, 2016. Current

liabilities were $17.4 million, net of deferred revenue of $53.8

million, as of March 31, 2017, compared to $13.9 million as of June

Palatin believes that with the proceeds from our license agreement

with AMAG, capital resources will be adequate to fund our planned

operations through calendar year 2018.

Palatin Drug Discovery Programs

In the conference call and webcast, management will discuss next

steps in Palatin's portfolio of drug development programs. These

include Palatin's melanocortin receptor 1 and receptor-5

agonist peptides for treatment of inflammatory and dermatologic

disease indications, natriuretic peptide receptor A agonist

compounds for treatment of cardiovascular and pulmonary

indications, and melanocortin receptor-4 agonist compounds for

treatment of obesity and diabetes.

(Financial Statement Data Follows)

Conference Call / Webcast

Palatin will host a conference call and audio webcast on May 16,

2017 at 11:00 a.m. Eastern Time to discuss the results of

operations in greater detail and provide an update on corporate

developments. Individuals interested in listening to the conference

call live can dial 1-888-523-1227 (U.S./Canada) or 1-719-457-2656

(international), conference ID 3692572. 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 webcast replay will be

available approximately one hour after the completion of the call.

To access the telephone replay, dial 1-888-203-1112 (U.S./Canada)

or 1-719-457-0820 (international), passcode 3692572. The webcast

and telephone replay will be available through May 23,

About Palatin Technologies, Inc.

Palatin Technologies, Inc. is a biopharmaceutical company

developing targeted, receptor-specific peptide therapeutics 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 in order to maximize their commercial potential. For

additional information regarding Palatin, please visit

Palatin's website at www.Palatin.com.

Forward-looking Statements