Comparison of Palatin vs. Clinuvel or a Tale of Two Melanocortins

A Tale of Two Melanocortins: Palatin vs. Clinuvel

Introduction

Both Palatin Technologies and Clinuvel Pharmaceuticals share roots in melanocortin research pioneered by Mac Hadley in Arizona. Both companies’ products, bremelanotide(Palatin) and afamelanotide (Clinuvel), are melanocortin agonists with demonstrated potential in treating various diseases and even inducing skin pigmentation. Despite these shared origins, the twocompanies have taken very different approaches to development and commercialization, with Clinuvel emerging as the clear standout interms of strategy and performance.


PalatinTechnologies

Palatin has concentrated on melanocortin receptor therapeutics,developing candidates like PL9643 for dry eye disease and PL8177 forulcerative colitis. Unlike Clinuvel, Palatin has depended heavily onexternal funding and partnerships, which has often led to financialinstability and debt. They even sold rights to Vyleesi, their onlyFDA-approved product. Moreover, frequent capital raises have resultedin substantial shareholder dilution, and the company currently facesa not-insignificant risk of bankruptcy.


Key Issues with Palatin:

• Shareholder Dilution: Palatin repeatedly issued new shares, e.g., 2.4 million in October 2023 at $2.12 and 1.8 million in January 2024 at $5.46.
• Loss of Key Asset: Sold Vyleesi, their only FDA-approved product, in 2023 for immediate cash, but at the cost of future revenue.
• Financial Distress: Palatin has received NYSE non-compliance notices and has reported consecutive fiscal losses, including a $29.7 million net loss for FY 2024.
• Stock Decline: From a peak of $2,406 in 1997, Palatin’s stock now trades at $1.30 in 2024, a 99.9% decline.

ClinuvelPharmaceuticals

Clinuvelhas taken a self-sustaining approach to growth. Their flagshipproduct, SCENESSE® (afamelanotide), is the world’s first FDA- andEMA-approved photoprotective treatment for erythropoieticprotoporphyria (EPP). By avoiding debt and managing financesconservatively, Clinuvel has achieved financial stability and steadygrowth.


Clinuvel’s Key Strengths:

• Financial Stability: Clinuvel remains debt-free, holds A$183.9 million in cash reserves, and has enjoyed eight consecutive years of profitability.
• Stock Performance: Clinuvel’s stock has risen from A$0.20 in 2004 to A$14.20 in 2024, delivering an astonishing 6,900% return for early investors. And many investors believe Clinuvel’s best products and potential are still ahead of them.
• Innovative Pipeline: Clinuvel is expanding its melanocortin lineup with treatments for vitiligo, stroke, and other disorders, as well as OTC M-line products, Neuracthel, and Prenumbra.
• Global Reach: With operations in Europe, the USA, and Australia, Clinuvel has extended its patient reach and diversified its revenue.

Long-Term Vision

Clinuvel is focused onbuilding a “house of melanocortins” by advancing R&D,expanding EPP treatment centers, and developing new therapies forunmet medical needs. Their commitment to sustainable growth andinnovation exemplifies a long-term strategy in contrast to Palatin’sfinancial struggles.

Conclusion

While both Palatin and Clinuvelhave contributed greatly to melanocortin research, Clinuvel’sindependent, debt-free strategy has established it as an industryleader in transformative melanocortin based technology. Bymaintaining financial stability and pursuing innovative therapies,Clinuvel prioritizes long-term success and shareholder value. Thereis no better metric of comparison to see just how well Clinuvel hasdone than to look at its performance in comparison to a company of very similar origins and technology such as Palatin. As investors, wecan take pride in Clinuvel’s achievements and look forward tocontinued growth and impact in the medical community.