For the quarter ended March 31, 2026, revenue was $3.9 million from collaboration and license agreements, compared to none in the prior-year period, primarily due to upfront payments under the Altanispac dry eye disease sublicensing. Operating expenses rose to $5.5 million versus $4.8 million a year earlier, reflecting increased R&D investment and program advancement costs.

The obesity program focuses on MC4R selective agonists for rare disorders including hypothalamic obesity, Prader-Willi syndrome and Bardet-Biedl syndrome. Preclinical data support once-weekly peptide candidates designed to minimize hyperpigmentation by enhancing MC4R selectivity and oral small molecules with improved potency and tolerability.

Palatin received €7.5 million ($8.8 million) in upfront and milestone payments from its retinal disease partnership with Boehringer Ingelheim, and $3.8 million from the Altanispac Labs dry eye disease deal in January 2026. Active out-licensing discussions are underway for ulcerative colitis and diabetic nephropathy assets following positive Phase 2 results.

The company targets an IND submission for its long-acting injectable MC4R agonist in Q4 2026, with initiation of Phase 1 SAD/MAD trials pending. A next-generation oral MC4R selective agonist IND is slated for H1 2027 based on insights from PL7737 and other preclinical models.