Palatin's stock rockets after FDA OK to market sexual desire disorder treatment
Shares of Palatin Technologies Inc. rocketed 27% in very active premarket trading Monday, after a positive Food and Drug Administration decision on AMAG Pharmaceuticals Inc.'s treatment for hypoactive sexual desire disorder (HSDD) triggered a $60 million milestone payment. Trading volume was over 2.9 million shares, making Palatin's stock the most actively traded ahead of the open. The FDA granted marketing approval for AMAG's new drug application (NDA) for Vyleesi, which was developed by Palatin. AMAG's stock surged 8.1% ahead of the open. The company expects to receive the milestone payment in July. Based on the license agreement with AMAG, Palatin is also entitled to receive royalties on sales, ranging from high single-digit to low double-digit percentage ranges, and other milestone payments based on escalating annual sales thresholds. Palatin's stock has rallied 23% over the past 12 months and AMAG shares have tumbled 59%, while the S&P 500 has gained 7.1%.
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