CRANBURY, N.J., Jan. 22, 2008 /PRNewswire-FirstCall/ -- Palatin Technologies, Inc. announced today that it entered into an agreement to settle all outstanding litigation and disputes with Competitive Technologies, Inc. related to a license agreement between the companies. Under the terms of the settlement, Palatin retains all rights to bremelanotide, its peptide in clinical development for male erectile dysfunction and female sexual dysfunction, with no obligations for any future payments to Competitive Technologies.
Both the pending arbitration initiated by Competitive Technologies and the action in Connecticut Superior Court will be dismissed with prejudice. The existing license agreement between Palatin and Competitive Technologies has been terminated, with Competitive Technologies receiving all rights to a peptide developed at the University of Arizona and called MT-II or PT-14, which Palatin ceased developing in 2000. As part of the settlement, Palatin remitted a one-time payment to Competitive Technologies of $800,000.
"We are pleased that Palatin's full rights to bremelanotide are no longer in question," stated Carl Spana, Ph.D., President and Chief Executive Officer of Palatin. "Facing significant legal costs in the coming months in preparation for the actual arbitration hearing and removing the uncertainty inherent in litigation were the driving factors for Palatin to settle this ongoing dispute. With this favorable outcome and the matter now behind us, we look forward to continuing to develop bremelanotide and our other product candidates."
Palatin owns patents, issued in the United States and foreign countries, which claim bremelanotide and use of bremelanotide in treating sexual dysfunction. Palatin's United States patents for bremelanotide do not expire until 2020 or later.
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