The positive late-stage results for female arousal drug from Palatin Technologies, Inc. (NYSE: PTN) once again throw light on the underappreciated market of female
sexual health.
Palatin announced the late-stage
study of bremelanotide met its primary endpoint to treat hypoactive sexual desire disorder (HSDD) in pre-menopausal women. The
drug is shown to have improved the desire and decrease distress associated with low sexual desire in women.
There are blockbuster drugs for erectile dysfunction in men such as Viagra from Pfizer Inc. (NYSE: PFE) and Cialis from Eli Lilly and Co (NYSE: LLY). In 2015, Viagra fetched about $1.3 billion in sales and Cialis
generated $2.3 billion sales.
But, finding a similar solution to women’s problems has been complex due to the fact that female bodies work differently than
men’s, and the general global perception that sexual disorders are primarily associated with men.
Recently, Addyi entered in to the space and got itself the nickname “female Viagra.” The drug is from Sprout Pharma, which was
acquired by Valeant Pharmaceuticals Intl Inc (NYSE: VRX) for $1 billion.
If Palatin’s drug is approved, it could be a threat to Addyi, as HSDD is one of the most common forms of female sexual disorder.
Also, Addyi is having tough times due to low demand and its parent company facing all sorts of problems, including regulatory
probes.
Another firm, Innovus Pharmaceuticals Inc (OTC: INNV), sells various products for Female Sexual Dysfunction. It recently acquired
rights for the OTC drug Zestra.
Another interesting fact is the
market for female sexual dysfunction drugs is believed to be larger than the market for male sexual disorder treatments. The
female sexual dysfunction market is estimated to be about $6 billion, while
Grand View Research predicts global erectile dysfunction drugs market to reach $3.2 billion by 2022.
So, it shouldn’t come as a surprise that many companies want to explore this underpenetrated, yet huge market. In fact, Reuters reported that Palatin has hired an investment bank
to explore a sale or licensing deal.
On Wednesday, shares of Palatin rose 18 percent to $0.57 on a volume of 29 million versus its three-month average volume of 1.38
million. In Thursday's pre-market, Palatin continued its rise, up 1.75 percent at $0.58 at last check.
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