By Anna Prior
Palatin Technologies Inc. (PTN) said its collaboration partner
AstraZeneca PLC (AZN, AZN.LN) has decided to discontinue further
development of an obesity drug after a clinical trial for the
treatment was halted as a man enrolled in the study became ill.
AstraZeneca's safety review committee in June halted the Phase 1
trial of AZD2820 after a serious adverse event was reported. The
affected subject, who may have suffered an allergic reaction after
his first dose, was treated at the site and fully recovered.
Palatin said the decision to stop development of the drug was
made based on investigations and reviews conducted by
AstraZeneca--the U.K.'s second-biggest drug company--after the
incident, adding that while the firm couldn't confirm that the
adverse event was linked to AZD2820, it also could not be
excluded.
The company also said the investigation determined that it is
unlikely that the serious adverse event was related to melanocortin
receptor activation as an approach for the treatment of
obesity.
"The AZD2820 compound is part of a broader research and
development collaboration with AstraZeneca," said Palatin Chief
Executive Carl Spana. "We have multiple classes of collaboration
compounds in various stages of preclinical testing and AstraZeneca
has informed us that they remain committed to the advancement of
collaboration compounds for treatment of obesity."
Under the terms of collaboration with AstraZeneca, Palatin is
eligible for milestone payments upon reaching certain developments,
in addition to royalties on sales. AstraZeneca has responsibility
for the drug's commercialization, and discovery and development
costs.
Palatin shares closed Thursday at 64 cents and were inactive
premarket. The stock is up 59% so far this year.
AstraZeneca's American depositary shares were down 0.8% to
$46.63 in light premarket trading. Through Thursday's close, they
were up 1.5% since the start of the year.
Write to Anna Prior at anna.prior@dowjones.com
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