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Published in U.S. 1 Newspaper on June 21, 2000. All rights


Life in the Fast Lane

Edward Quilty has resigned as president, CEO, and board

chairman of Carnegie Center-based Palatin Technologies to devote his

efforts to Derma Sciences, where he remains as CEO. Palatin’s chief

product, LeuTech, a diagnostic system that can locate infections,

could be on the market as early as the end of 2000. Its first


is to use radioactive antibodies to diagnose appendicitis, and the

FDA accepted the system for full review earlier this year (U.S. 1

March 22, 2000). Carl Spana, the executive vice president and chief

technology officer, is the interim CEO and president, and Steve Wills

stays in place as CFO.

Wills is also president of Alexander Road-based Golomb, Wills &


an accounting firm, and Spana is formerly an immunology researcher

at Bristol-Myers Squibb. Charles Putnam, formerly vice president of

Life Medical Sciences, is Palatin’s COO.

Palatin trades on the AMEX under symbol PTN, and the stock has swung

from a high above $7 to a low just over $2; it is trading at $7 plus

now. Quilty was said to be considering an equity offering last March,

shortly after he made a move that drew some criticism — canceling

a stock swap merger with San Diego-based Molecular Biosystems.

"From where Palatin is today, someone with a different skill set,

with more of a scientific background, would be better to lead the

company," says Quilty, "and that’s OK. I did what needed to

be done in the period of time I was there." He owns just short

of 700,000 shares or about seven percent of Palatin.

Derma Sciences is a $11 million revenues wound-care company. Founded

by a registered nurse in a town near Scranton, Pennsylvania, Derma

Sciences offers a full range of wound management and skin care


It has a manufacturing facility in St. Louis for skin care products,

and the wound care and wound closure products are manufactured on

contract. Until now Quilty left day-to-day operations to his chief

operating officer, Richard Mink, who has left the company.

"Derma Sciences has a solid core sales base and with better


control and a little more attention to every aspect of the business,

and finding new avenues to promote our products, I expect to see some

dramatic change in results in the next several months," says


The stock is trading at just over $2.

Palatin — a made-up name meant to sound sufficiently generic to

encompass a variety of technologies and products — started out

in 1995 as a shell company that could be used to acquire interesting

technologies. Now Palatin has its administrative headquarters at the

Carnegie Center and accomplishes its lab work in Edison.

Palatin’s leading technology develops chemical agents that, when


into the body, help imaging machines to see an ever-wider array of

soft tissues implicated in conditions ranging from cancer to


to cardiovascular disease. A major site of infection, like an inflamed

appendix, shows up brightly on an image taken with the gamma camera,

enabling doctors to determine quite easily whether a patient has


or not. Other possible uses are to trace osteomyelitis (a bacterial

infection of the bone and bone marrow), ulcerative colitis and


and other abscesses, including bone abscesses commonly suffered by

people with prostheses.

Other Palatin acquisitions have brought the company such technologies

as a nasal spray for erectile dysfunction now in development, and

MIDAS, a proprietary peptide chemistry technology that might help

develop a drug for obesity. The company posted a net loss of slightly

more than $12 million in the year to June 30, 1999, and revenues of

slightly more than $600,000.

A Yonkers native with an undergraduate degree from Southern Missouri

University and an MBA from Ohio University, Quilty worked at Baxter,

a large diversified health products company, and at an infusion


company called McGaw before coming to Princeton to oversee the IPO

of Life Medical Sciences in 1992. Then he joined MedChem and brought

along a wound-care product called SureClosure from Life Medical, and

he promptly sold the company at what he calls "a healthy


Quilty then branched out in two directions: into Palatin Technologies

on one hand and on the other hand into Derma Sciences. "I believe

both of these companies will be successes, and I am counting on


he says.

Palatin Technologies Inc. (PTN), 103 Carnegie


Suite 200, Princeton 08540. Carl Spana, interim CEO and president.

609-520-1911; fax, 609-452-0880. Home page:

Derma Sciences Inc. (DSCI), 214 Carnegie Center,

Suite 100, Princeton 08540. Edward J. Quilty, CEO. 609-514-4744; fax,

609-514-0502. Home page:

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