Partnering landscape from the conference call (edited slightly only to improve readability)
Joe Pantginis - ROTH Capital Partners
And then, I guess, now that you’ve been highlighting your business development activities more, maybe you can review for us a little bit since it is something you would like to do in 2013, the sort of internal goals you might have as to what you are looking for in a partnership or how you would look to bring the drug forward with someone and also any additional color that you can add as to where these discussions stand?
Carl Spana - President & CEO
Hi, Joe. I mean, I will start off and I will hand it over to Steve to give a little additional information. Certainly it is a goal of ours to go through and look for a partnership to help bring bremelanotide forward and into commercialization. I mean we believe that this drug has legs to be successful in Phase 3 and to be approved, so certainly we are looking for a deal that provides a substantial backend for Palatin or substantial part of the revenue of the product for Palatin because we believe that we are going to get there. We’ve been very nicely pleased with the amounts of interest we’ve had and we believe that as we come out of the end of Phase 2 meeting and the details of the Phase 3 programs are better defined we should be able to move towards a partnership with one of the companies we are currently talking to. I don’t know, Steve, if you want to add little more color?
Steve Wills - CFO & COO
Not too much more color since you’ve pretty much covered it there, but as maybe to just to reiterate the top line results only came out in November of 2012, so our - what we would call substantive business development activities really only started in January, primarily we had some - a lot of time around the JPMorgan Conference in the first week of January out in San Francisco area. We are extremely pleased with the feedback that we’ve received. We have more chatting with multiple partners, some at different stages and as Carl mentioned we would anticipate that the more substantive type of diligence and discussions will take place post the FDA meeting, once we have a bit more specificity on the path going forward if you will."
Clearly PTN has no partner interested in partnering now, before the End of Phase 2 meeting with the FDA. As Yanni implies , I think that itself indicates there is not a great interest on any potential partner's part to partner with PTN on Brem.
Furthermore, the message from PTN management is clearly that they would like investors to think that once they have more clarity from the End of Phase 2 meeting, that THEN there will be a lot of desire from potential partners.
But I think the End of Phase 2 meeting is really mostly about details about what studies will be needed, how many patients, study design--the information about how approvable Brem would be if the Phase 2 study results are replicated is really already known by those experienced in the field. And as Yanni points out, a potential partner would probably prefer to participate as a partner in the End of Phase 2 meeting as opposed to entering the partnership afterward. This does not mean it is too late to partner after the End of Phase 2 meeting but I think it should not be the barrier that it is being portrayed at and should actually be enhancing a partnership deal now, not postponing one.
So putting what we have all together, I suspect that for management to imply that partners are just waiting for more information from the End of Phase 2 meeting and that their interest/desire is likely to increase significantly after the End of Phase 2 meeting is disingenuous, I think.
// They made it clear they are curently chatting with multiple potential partners but the end of PHASE2 meeting brings more clarity to all involved...Makes sense to me.
In this space of Female Sexual Dysfunction which has failed a few times with other companies,it is important for any future partner to know what the FDA's epectations are and what the Phase3 Tial might look like before signing any deal.That meeting will help to determine potential success or failure as they move forward-
How many patients, how long a trial,endpoint expectations, cost of trial etc.. all will be determined soon, and a future partner needs to know this.As pointed out in CC, darn' the trial results just came out only 3 months ago!
There shouldnt be any panic or pessimism about not having a partner yet.
Let the end of Phase2 meeting play out and see where it goes.Never a guarantee, but Palatin not getting a partner is far from being etched in stone..
Meanwhile,pretty good news announced today on the trial results...
There are posters here who are allegedly expecting a partnership.
PTN's 10Q verbiage and their reasoning that a partnership is more likely after the End of Phase 2 meeting than now, indicate to me that PTN getting a partner before the results of the first Phase 3 study are available is far from etched in stone.