AstraZeneca makes additional payment to Palatin

AstraZeneca has paid its partner Palatin to extend the two companies’ research collaboration and license agreement.

The transaction – for $6.6 million (4.55 million pounds) – will see $4.1 million put towards further discovery, development and commercialisation of compounds that target melanocortin receptors.

The remaining $2.5 million milestone payment is as a result of the existing terms set out when the two organisations first announced the collaboration.

In a statement, Palatin said: “The $6.6 million received or to be received from AstraZeneca … gives Palatin sufficient cash to fund its projected operations through calendar year 2009.”

Two months ago, AstraZeneca revealed it had signed a worldwide agreement with MAP Pharmaceuticals to develop and commercialise the latter’s proprietary nebulised formulation Unit Dose Budesonide.

Under the terms of the collaboration, AstraZeneca paid its partner an upfront fee of $40 million, which will then be followed by an extra $35 million when the drug’s phase III trial reaches its primary endpoint.