Sep 28, 2026 earnings call — Next-generation MC4R therapies for rare obesity
Reported full fiscal year collaboration and license revenue of $13.2 million, and ended the year with $7.5 million in cash, with substantial doubt about ability to continue without financing.
Revenue $0.0B (est $0.0B) · EPS $-1.11 (est $-1.20)
Key quotes
"Our principal strategic focus is the development of next-generation best-in-class melanocortin-4 receptor or MC4R agonist for treating syndromic and rare obesity disorders."
"While currently available and emerging therapies have demonstrated meaningful efficacy, gastrointestinal adverse events and hyperpigmentation remain important challenges for patients requiring long-term treatment."
"Subject to appropriate funding, we are targeting initiation of a Phase I single ascending dose and multiple ascending dose studies for our lipidated peptide candidate in the first half of calendar 2027 with data targeted for the second half of 2027,"
Analyst Q&A 3
peptide types, side effects, funding
Q (Scott Henry · AGP): He asked the difference between lipidated and non-lipidated peptide approaches and whether they would pick one; how they will reduce GI side effects and which rare obesity indication they would pursue first. He also asked about collaboration milestone revenue, OpEx trends for 2027, and whether Series J warrants remain part of funding.
A: They said lipidated peptides bind plasma protein so longevity is built into the molecule, avoid polymer formulation, and allow easier dose titration; they prefer lipidation but will run both approaches and likely advance both to Phase II before choosing. For GI tolerability the main tactic is to avoid bolus overdosing by flattening absorption with these peptides, and a longer-term tactic is designing compounds less likely to cause nausea. On indications they expect to start with hypothalamic obesity, then Prader-Willi and Bardet-Biedl; management expects a Boehringer milestone within the next 2 to 3 quarters, anticipates OpEx to increase early in 2027 to levels similar to early 2026, and confirmed the Series J warrant trigger is part of future funding and could yield approximately $18.5 million if exercised.
"Our preference would be for a lipidated approach in that it gives a little more flexibility." — Carl Spana (CEO)
PL-2000 IND steps and oral program
Q (Yale Jen · Laidlaw & Company): He asked what IND-enabling work remains before starting PL-2000 Phase I, whether more manufacturing is needed, how lipidated compares to non-lipidated and competitors, progress on the oral PL-7737 program, timing for IND-enabling, and whether PWS would be mono- or combination therapy.
A: They said the main remaining work is the initial animal toxicology studies, which are being scheduled, and that manufacturing work continues ongoing under cGMP as they scale. Lipidated melanocortin peptides required a technological breakthrough, and current lipidated candidates show very long half-lives that could allow dosing less than once a week, possibly once every 2 weeks; Rhythm appears to be using a polymer approach rather than lipidation. For the oral program they found a tox issue with PL-7737, believe they understand and fixed it, have multiple optimized scaffolds moving in parallel, and are pushing to select a compound by year-end and begin IND-enabling to put it in the clinic in the second half of the year; for syndromic obesity like PWS they expect many patients ultimately may receive combination therapy.
"So the main thing remaining is really getting the initial animal tox work done." — Carl Spana (CEO)
MC4R vs MC1R selectivity and Phase I goals
Q (Dev Prasad · Lucid): He asked for quantification of MC4R versus MC1R selectivity compared to prior Palatin compounds, and what they plan to learn from Phase I for both peptide and oral programs.
A: They declined to give detailed selectivity numbers for competitive reasons but said they are confident the candidates have de minimis MC1R agonism, which should translate to improved hyperpigmentation clinically. For Phase I they will use single ascending dose studies to check for acute toxicity and tolerability window, and multiple ascending dose studies treating healthy obese patients for 28 days to assess food intake, weight loss, longer-term tolerability and safety so they have a clear picture before moving into the targeted rare patient populations.
"When we move into the multiple ascending dose part, these will now move to what are called healthy obese patients." — Carl Spana (CEO)