Are you ready for an ultra-affordable asset with fast-action potential? One biotechnology company that deserves your consideration is Palatin Technologies (NYSEAMERICAN:PTN) — and as we’ll see, one analyst just slapped a high price target on PTN stock.
Don’t get too excited, though — this is a volatile stock, as low-priced biotech stocks tend to be. By all means, please keep your position size small if you plan to invest in Palatin.
That having been said, it’s exciting to consider Palatin’s promising pipeline of treatments for multiple conditions. In fact, one of the company’s most high-conviction clinical programs is set to enter into Phase 3 this month, December 2021.
Could this be the under-the-radar runner that biotech traders crave? It’s certainly possible, so get ready for some swift price action as we map out the wild moves and possible future course of PTN stock.
PTN Stock at a Glance
Got a dollar to spare? If so, then chances are pretty good that you’ll be able to invest in Palatin. At the end of November, PTN stock shares could be purchased for just 71 cents apiece. So, you should be able to “stock up” on the shares — but again, please don’t go overboard in your allocation.
This stock is definitely capable of going higher than $1. As evidence of this, we should observe that its 52-week high is $1.30. Yet, $1 and $1.30 could just be stepping stones on the way to much higher price points.
According to InvestorPlace contributor William White, one particular Wall Street expert envisioned quadruple-digit growth for PTN stock. Reportedly, H.C. Wainwright analyst Joseph Pantginis raised his price target on Palatin Technologies shares from $2 to $5. That’s even higher than the already ambitious Wall Street analyst consensus price target of $3.33. As for Pantginis, he maintained his buy rating on PTN stock.
So, what might have prompted this particular analyst to envision the share price reaching $5?
One Company, Multiple Conditions
To get to the bottom of this burning question, first we need to take a step back and learn the basics of Palatin Technologies. To put it simply, the company develops “novel therapeutics for patients living with inflammatory and autoimmune conditions.”
These therapies are based on the body’s melanocortin system. This system involves five receptors that help to control inflammation, immune response, metabolism, steroid hormone production, and sexual function in the body. To really get a handle on how Palatin leverages the melanocortin system to address a range of conditions, you’ll want to read the company’s investor presentation.
For now, though, I’ll give you a quick rundown of what’s in Palatin’s pipeline:
- PL9643 melanocortin agonist for dry eye disease
- PL8177 melanocortin agonist for ulcerative colitis/inflammatory bowel disease
- Vyleesi (bremelanotide), an already Food and Drug Administration (FDA) approved and commercially available treatment for
hypoactive sexual desire disorder
- PL9643 melanocortin agonist for second front of the eye indication
- An unnamed melanocortin agonist for diabetic retinopathy/non-infectious uveitis
- PL3994 NPR-A for cardiovascular disease
- PL5028 NPR-A/C agonist for cardiovascular and fibrotic diseases
Visibility Is Growing
So, now you know the broad applications of Palatin’s melanocortin-system-focused innovations. While all of the aforementioned treatments could be important to a range of patients, Pantginis — the analyst with the $5 price target for PTN stock — commented on PL9643 in particular.
In a research note, Pantginis observed that “PL9643 is about to begin its pivotal Phase 3 study in dry eye disease and visibility is growing on the company’s overall differentiated melanocortin platform.”
That statement comports with Palatin’s recent press release, which assures that the company remains on track to initiate its pivotal Phase 3 clinical program in dry eye disease patients in December 2021, with the data readout expected in the second half of 2022.
The Takeaway on PTN Stock
Sure, $5 might seem like a very ambitious price target. But Palatin is an ambitious company.
Potentially, the company’s melanocortin-system-focused treatments can help to improve the lives of numerous patients. So, it’s conceivable that PTN stock is actually worth $5 — in which case, a few shares at the current price should certainly be a worthy investment.
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On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.