The proposed merger of contrast agent developers Palatin Technologies and Molecular Biosystems will not take place. Princeton, NJ-based Palatin has informed MBI that it has elected not to go ahead with the merger, saying the deal was not the best option for its shareholders.
"We took a long hard look at it, but felt at the end of the day that it was not in our best interest," said Palatin executive vice president and chief technical officer Carl Spana.
Palatin declined to give further reasons for its decision, which ends a definitive merger agreement the companies signed on November 12, 1999. Both firms had touted the deal as a means of building a stronger company with a broader product range and a more robust technology pipeline.
Now that the deal with MBI is off, Palatin will continue to investigate acquisition or partnership opportunities, Spana said.
"The idea behind the MBI deal was to build enough mass to get investors interested and have a lot of cutting edge imaging technology in the product portfolio," he said. "That's still a valid concept; it's just a matter of finding the right pieces to put together. There's a wealth of interesting opportunities out there."
In a press release, MBI said that it is currently reviewing its options. An MBI spokesperson declined to comment on what those options might be.
San Diego-based MBI currently has one product on the market: its Optison cardiac ultrasound contrast agent, whose current indications are for endocardial border delineation and left ventricular opacification. MBI is also developing MB-840, a liver-selective CT imaging agent with therapeutic potential.
For its part, Palatin has submitted a biologics license application (BLA) to the Food and Drug Administration for its LeuTech radiolabeled monoclonal antibody agent for the imaging of infection. In February the FDA accepted the application for full review, a process that typically takes 10-12 months. The company is also developing PT-14, a peptide-based therapeutic drug for sexual dysfunction. PT-14 has completed phase I clinical trials.
Both companies hold strategic alliances with Mallinckrodt for product distribution, and the St. Louis-based firm has an equity stake in both MBI and Palatin. MBI also partners with Chugai Pharmaceutical of Japan for commercialization of Optison in Japan, South Korea, and Taiwan. Chugai began phase III clinical trials in Japan in December for the agent (called FS069 in Japan) for the assessment of left ventricular opacification and myocardial perfusion imaging.
By Erik L. RidleyAuntMinnie.com staff writer
March 14, 2000
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Copyright © 2000 AuntMinnie.com
![Examples of ultrasound findings and techniques. (A) Images in a 39-year-old male patient with a mass in the left thigh. The mass is heterogeneous on the B-mode US image (compared with the patient in D) and showed increased microvascularity (superb microvascular imaging [SMI]) and shear-wave elastography (SWE) values. Undifferentiated pleomorphic sarcoma was diagnosed at biopsy (with pleomorphic rhabdomyosarcoma in surgical specimen). (B) Images in an 18-year-old male patient with a mass in the left leg. The mass is hypoechoic on the B-mode image, with no other findings suggestive of malignancy. The lesion is in contact with the cortex of the tibia, which is slightly irregular. CT revealed a doubtful anteromedial tibial erosion. The microvascular study demonstrated high vascularization, suggestive of malignancy. Periosteal Ewing sarcoma was diagnosed with both histologic and immunohistochemical confirmation. (C) Images in a 69-year-old female patient with a lump growing on the outside of the left leg. Multiple SWE examinations were performed (please note the high values obtained in the measurements, whereas the color map highlights the stiffness relative to adjacent tissues). SMI showed areas of increased vascularization to target for sampling. Undifferentiated spindle cell sarcoma was diagnosed at biopsy, with residual leiomyosarcoma in the surgical specimen after neoadjuvant therapy. (D) Images in a 56-year-old female patient with a mass in the right thigh. The mass is heterogeneous at both B-mode ultrasound (similar to patient A) and MRI (coronal T2-weighted spectral attenuated inversion recovery [SPAIR]; T1-weighted pre-contrast and postcontrast imaging), which even shows uptake after the administration of paramagnetic contrast material, which is traditionally suggestive of malignancy. Low values at SMI and elastography are suggestive of benignity. Spindle cell lipoma was diagnosed at biopsy, with atypical spindle cell lipomatous tumor in the surgical specimen.](https://img.auntminnie.com/mindful/smg/workspaces/default/uploads/2026/08/images-radiol250278fig2.APCFLSvX6p.jpg?auto=format%2Ccompress&fit=crop&h=100&q=70&w=100)
![Examples of ultrasound findings and techniques. (A) Images in a 39-year-old male patient with a mass in the left thigh. The mass is heterogeneous on the B-mode US image (compared with the patient in D) and showed increased microvascularity (superb microvascular imaging [SMI]) and shear-wave elastography (SWE) values. Undifferentiated pleomorphic sarcoma was diagnosed at biopsy (with pleomorphic rhabdomyosarcoma in surgical specimen). (B) Images in an 18-year-old male patient with a mass in the left leg. The mass is hypoechoic on the B-mode image, with no other findings suggestive of malignancy. The lesion is in contact with the cortex of the tibia, which is slightly irregular. CT revealed a doubtful anteromedial tibial erosion. The microvascular study demonstrated high vascularization, suggestive of malignancy. Periosteal Ewing sarcoma was diagnosed with both histologic and immunohistochemical confirmation. (C) Images in a 69-year-old female patient with a lump growing on the outside of the left leg. Multiple SWE examinations were performed (please note the high values obtained in the measurements, whereas the color map highlights the stiffness relative to adjacent tissues). SMI showed areas of increased vascularization to target for sampling. Undifferentiated spindle cell sarcoma was diagnosed at biopsy, with residual leiomyosarcoma in the surgical specimen after neoadjuvant therapy. (D) Images in a 56-year-old female patient with a mass in the right thigh. The mass is heterogeneous at both B-mode ultrasound (similar to patient A) and MRI (coronal T2-weighted spectral attenuated inversion recovery [SPAIR]; T1-weighted pre-contrast and postcontrast imaging), which even shows uptake after the administration of paramagnetic contrast material, which is traditionally suggestive of malignancy. Low values at SMI and elastography are suggestive of benignity. Spindle cell lipoma was diagnosed at biopsy, with atypical spindle cell lipomatous tumor in the surgical specimen.](https://img.auntminnie.com/mindful/smg/workspaces/default/uploads/2026/08/images-radiol250278fig2.APCFLSvX6p.jpg?auto=format%2Ccompress&dpr=2&fit=crop&h=167&q=70&w=250)
