----

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| [X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----|-----------------------------------------------------------------------------------------|

| [  ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------------|------------------------------------------------------------------------------------------|

| Delaware                                                      |   | 95-4078884                           |
|---------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. Employer Identification No.) |
|                                                          |   |                                 |
| 4C Cedar Brook DriveCranbury, New Jersey                      |   | 08512                                |
| (Address of principal executive offices)                      |   | (Zip Code)                           |

----

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PALATIN 

|                                                                                                | Page   |
|-----------------------------------------------------------------------------------------------------|--------|
| PART I – FINANCIAL INFORMATION                                                                |
| Item 1. Financial Statements                                                                        |   |
| Consolidated Balance Sheets as of December 31, 2010 and June 30, 2010                               | 2      |
| Consolidated Statements of Operations for the Three and Six Months EndedDecember 31, 2010 and 2009  | 3      |
| Consolidated Statements of Cash Flows for the Six Months EndedDecember 31, 2010 and 2009            | 4      |
| Notes to Consolidated Financial Statements                                                          | 5      |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 12     |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk                                  | 15     |
| Item 4. Controls and Procedures                                                                     | 15     |
| PART II – OTHER INFORMATION                                                                   |
| Item 1. Legal Proceedings                                                                           | 16     |
| Item 1A. Risk Factors                                                                               | 16     |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                 | 17     |
| Item 3. Defaults Upon Senior Securities                                                             | 17     |
| Item 4. (Removed and Reserved)                                                                      | 17     |
| Item 5. Other Information                                                                           | 17     |
| Item 6. Exhibits                                                                                    | 17     |
|                                                                                                |

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|                                                                                                                                                                                             |   | December 31,2010                                                                                  |   | June 30,2010                                                                                      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|
| ASSETS                                                                                                                                                                                           |   |                                                                                              |   |                                                                                              |
| Current assets:                                                                                                                                                                                  |   |                                                                                              |   |                                                                                              |
|   Cash and cash equivalents                                                                                                                                                            |   | $          1,731,615                            |   | $          5,405,430                            |
|   Available-for-sale investments                                                                                                                                                       |   | 1,952,666                                                                                         |   | 3,462,189                                                                                         |
|   Accounts receivable                                                                                                                                                                  |   | -                                                                                                 |   | 2,879                                                                                             |
|   Prepaid expenses and other current assets                                                                                                                                            |   | 245,024                                                                                           |   | 393,313                                                                                           |
|       Total current assets                                                                                                                                         |   | 3,929,305                                                                                         |   | 9,263,811                                                                                         |
|                                                                                                                                                                                             |   |                                                                                              |   |                                                                                              |
| Property and equipment, net                                                                                                                                                                      |   | 1,794,970                                                                                         |   | 2,388,365                                                                                         |
| Restricted cash                                                                                                                                                                                  |   | 475,000                                                                                           |   | 475,000                                                                                           |
| Other assets                                                                                                                                                                                     |   | 270,581                                                                                           |   | 261,701                                                                                           |
|       Total assets                                                                                                                                                 |   | $          6,469,856                            |   | $        12,388,877                                       |
|                                                                                                                                                                                             |   |                                                                                              |   |                                                                                              |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                             |   |                                                                                              |   |                                                                                              |
| Current liabilities:                                                                                                                                                                             |   |                                                                                              |   |                                                                                              |
|   Capital lease obligations                                                                                                                                                            |   | $               20,708 |   | $               19,670 |
|   Accounts payable                                                                                                                                                                     |   | 502,125                                                                                           |   | 155,795                                                                                           |
|   Accrued compensation                                                                                                                                                                 |   | 564,887                                                                                           |   | -                                                                                                 |
|   Unearned revenue                                                                                                                                                                     |   | 132,090                                                                                           |   | -                                                                                                 |
|   Accrued expenses                                                                                                                                                                     |   | 823,984                                                                                           |   | 2,219,466                                                                                         |
|       Total current liabilities                                                                                                                                    |   | 2,043,794                                                                                         |   | 2,394,931                                                                                         |
|                                                                                                                                                                                             |   |                                                                                              |   |                                                                                              |
| Capital lease obligations                                                                                                                                                                        |   | 3,663                                                                                             |   | 14,284                                                                                            |
| Deferred rent                                                                                                                                                                                    |   | 391,314                                                                                           |   | 661,389                                                                                           |
|       Total liabilities                                                                                                                                            |   | 2,438,771                                                                                         |   | 3,070,604                                                                                         |
|                                                                                                                                                                                             |   |                                                                                              |   |                                                                                              |
|                                                                                                                                                                                             |   |                                                                                              |   |                                                                                              |
|                                                                                                                                                                                             |   |                                                                                              |   |                                                                                              |
| Stockholders' equity:                                                                                                                                                                            |   |                                                                                              |   |                                                                                              |
|   Preferred stock of $.01 par value – authorized 10,000,000 shares;                                                                                                              |   |                                                                                              |   |                                                                                              |
|     Series A Convertible; issued and outstanding 4,997 shares as of December 31, 2010 and June 30, 2010, respectively                                                        |   | 50                                                                                                |   | 50                                                                                                |
|   Common stock of $.01 par value – authorized 40,000,000 shares; issued and outstanding 11,854,028 and 11,702,818 shares as of December 31, 2010 and June 30, 2010, respectively |   | 118,540                                                                                           |   | 117,028                                                                                           |
|   Additional paid-in capital                                                                                                                                                           |   | 218,718,757                                                                                       |   | 218,236,723                                                                                       |
|   Accumulated other comprehensive income                                                                                                                                               |   | 68,738                                                                                            |   | 138,650                                                                                           |
|   Accumulated deficit                                                                                                                                                                  |   | (214,875,000)                                                                                     |   | (209,174,178)                                                                                     |
|       Total stockholders’ equity                                                                                                                             |   | 4,031,085                                                                                         |   | 9,318,273                                                                                         |
|       Total liabilities and stockholders’ equity                                                                                                             |   | $          6,469,856                            |   | $        12,388,877                                       |

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|                                                                                                              |   | Three Months Ended December 31,                                                       |   | Six Months Ended December 31,                                                                   |
|-------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|
|                                                                                                              |   | 2010                                                                                  |   | 2009                                                                                            |   | 2010 |   | 2009 |
|                                                                                                              |   |                                                                                  |   |                                                                                            |   |   |   |   |
| REVENUES:                                                                                                         |   |                                                                                  |   |                                                                                            |   |   |   |   |
|      License and contract                                                                |   | $         195,408                        |   | $     7,283,299                                                        |   | $         411,555 |   | $    10,945,918 |
|      Grant                                                                               |   | 846,768                                                                               |   | -                                                                                               |   | 846,768 |   | - |
|           Total revenues                                        |   |     1,042,176                                                     |   |      7,283,299                                                         |   |    1,258,323 |   |     10,945,918 |
|                                                                                                              |   |                                                                                  |   |                                                                                            |   |   |   |   |
| OPERATING EXPENSES:                                                                                               |   |                                                                                  |   |                                                                                            |   |   |   |   |
|      Research and development                                                            |   | 1,984,440                                                                             |   | 2,712,871                                                                                       |   | 5,437,202 |   | 5,382,435 |
|      General and administrative                                                          |   | 889,476                                                                               |   | 1,134,963                                                                                       |   | 2,271,252 |   | 2,288,694 |
|           Total operating expenses                              |   | 2,873,916                                                                             |   | 3,847,834                                                                                       |   | 7,708,454 |   | 7,671,129 |
|                                                                                                              |   |                                                                                  |   |                                                                                            |   |   |   |   |
|          Income (loss) from operations                               |   |   (1,831,740)                                                               |   | 3,435,465                                                                                       |   |   (6,450,131) |   | 3,274,789 |
|                                                                                                              |   |                                                                                  |   |                                                                                            |   |   |   |   |
| OTHER INCOME  (EXPENSE):                                                                                |   |                                                                                  |   |                                                                                            |   |   |   |   |
|      Investment income                                                                   |   | 32,987                                                                                |   | 70,317                                                                                          |   | 53,362 |   | 103,629 |
|      Interest expense                                                                    |   | (1,329)                                                                               |   | (2,315)                                                                                         |   | (3,633) |   | (7,016) |
|      Gain on sale of securities                                                          |   | 60,389                                                                                |   | -                                                                                               |   | 60,389 |   | - |
|      Gain on sale of supplies and equipment                                              |   | 1,800                                                                                 |   | -                                                                                               |   | 1,800 |   | 95,000 |
|           Total other income, net                               |   | 93,847                                                                                |   | 68,002                                                                                          |   | 111,918 |   | 191,613 |
|                                                                                                              |   |                                                                                  |   |                                                                                            |   |   |   |   |
|          Income (loss) before income taxes                           |   |   (1,737,893)                                                               |   | 3,503,467                                                                                       |   |   (6,338,213) |   | 3,466,402 |
| Income tax benefit                                                                                                |   | 637,391                                                                               |   | 998,408                                                                                         |   | 637,391 |   | 998,408 |
|                                                                                                              |   |                                                                                  |   |                                                                                            |   |   |   |   |
| NET INCOME (LOSS)                                                                                                 |   | $    (1,100,502)                                                  |   | $      4,501,875                                                  |   | $    (5,700,822) |   | $      4,464,810 |
|                                                                                                              |   |                                                                                  |   |                                                                                            |   |   |   |   |
| Basic net income (loss) per common share                                                                          |   | $             (0.09) |   | $               0.42 |   | $             (0.48) |   | $               0.42 |
|                                                                                                              |   |                                                                                  |   |                                                                                            |   |   |   |   |
| Diluted net income (loss) per common share                                                                        |   | $             (0.09) |   | $               0.42 |   | $             (0.48) |   | $               0.42 |
|                                                                                                              |   |                                                                                  |   |                                                                                            |   |   |   |   |
| Weighted average number of common shares outstanding used in computing basic net income (loss) per common share   |   | 11,839,309                                                                            |   | 9,616,954                                                                                       |   | 11,785,470 |   | 9,373,788 |
| Weighted average number of common shares outstanding used in computing diluted net income (loss) per common share |   | 11,839,309                                                                            |   | 9,664,507                                                                                       |   | 11,785,470 |   | 9,417,662 |

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|                                                                                                              |   | Six Months Ended December 31,                                                              |
|-------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|
|                                                                                                              |   | 2010                                                                                       |   | 2009 |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                             |   |                                                                                       |   |   |
|   Net income (loss)                                                                                     |   | $      (5,700,822)                                           |   | $        4,464,810 |
|   Adjustments to reconcile net loss to net cash                                                         |   |                                                                                       |   |   |
|     used in operating activities:                                                             |   |                                                                                       |   |   |
|       Depreciation and amortization                                                 |   | 593,395                                                                                    |   | 666,789 |
|       Gain on sale of supplies and equipment                                        |   | (1,800)                                                                                    |   | (95,000) |
|       Gain on sale of available-for-sale  investments                     |   | (60,389)                                                                                   |   | - |
|       Stock-based compensation                                                      |   | 438,139                                                                                    |   | 635,108 |
|       Amortization of deferred revenue                                              |   | -                                                                                          |   | (7,276,736) |
|       Changes in operating assets and liabilities:                                  |   |                                                                                       |   |   |
|         Accounts receivable                                               |   | 2,879                                                                                      |   | (1,382,467) |
|         Prepaid expenses and other assets                                 |   | 139,409                                                                                    |   | 202,595 |
|         Accounts payable                                                  |   | 346,330                                                                                    |   | 98,810 |
|         Accrued expenses and compensation                                 |   | (1,100,670)                                                                                |   | (506,545) |
|         Unearned revenues                                                 |   | 132,090                                                                               |   | - |
|             Net cash used in operating activities     |   | (5,211,439)                                                                                |   | (3,192,636) |
|                                                                                                              |   |                                                                                       |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                             |   |                                                                                       |   |   |
|       Proceeds from sale of supplies and equipment                                  |   | 1,800                                                                                      |   | 95,000 |
|       Proceeds from sale of available-for-sale investments                          |   | 1,500,000                                                                                  |   | - |
|             Net cash provided by investing activities |   | 1,501,800                                                                                  |   | 95,000 |
|                                                                                                              |   |                                                                                       |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                             |   |                                                                                       |   |   |
|       Payments on capital lease obligations                                         |   | (9,583)                                                                                    |   | (76,950) |
|       Payment of withholding taxes related to restricted stock units                |   | (18,993)                                                                                   |   | (84,379) |
|       Proceeds from sale of common stock units and warrant and                      |   |                                                                                       |   |   |
|          exercise of common stock options                            |   | 64,400                                                                                     |   | 2,802,988 |
|             Net cash provided by financing activities |   | 35,824                                                                                     |   | 2,641,659 |
|                                                                                                              |   |                                                                                       |   |   |
| NET DECREASE IN CASH AND                                                                                          |   |                                                                                       |   |   |
|   CASH EQUIVALENTS                                                                                      |   | (3,673,815)                                                                                |   | (455,977) |
|                                                                                                              |   |                                                                                       |   |   |
| CASH AND CASH EQUIVALENTS, beginning                                                                              |   |                                                                                       |   |   |
|    of period                                                                                       |   | 5,405,430                                                                                  |   | 4,378,662 |
|                                                                                                              |   |                                                                                       |   |   |
| CASH AND CASH EQUIVALENTS, end of period                                                                          |   | $        1,731,615                                 |   | $        3,922,685 |
|                                                                                                              |   |                                                                                       |   |   |
| SUPPLEMENTAL CASH FLOW INFORMATION:                                                                               |   |                                                                                       |   |   |
|     Cash paid for interest                                                                    |   | $              3,633 |   | $               7,016 |
|     Unrealized loss on available-for-sale investments                                         |   | $             (9,523)     |   | $             (7,926) |

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|                                                          | Three months ended December 31,                                                       |   | Six months ended December 31,                                                                   |
|---------------------------------------------------------------|---------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------|
|                                                          | 2010                                                                                  |   | 2009                                                                                            |   | 2010 |   | 2009 |
| Net income (loss) per common share – Basic:             |                                                                                  |   |                                                                                            |   |   |   |   |
| Net income (loss)                                             | $    (1,100,502)                                                  |   | $      4,501,875                                                  |   | $   (5,700,822) |   | $   4,464,810 |
| Net income allocated to Series A Preferred Shares             | -                                                                                     |   | (508,876)                                                                                       |   | - |   | (508,791) |
| Net income (loss)  available to common stockholders | $    (1,100,502)                                                  |   | $      3,992,999                                                  |   | $    (5,700,822) |   | $   3,956,019 |
| Weighted average common shares outstanding                    | 11,839,309                                                                            |   | 9,616,954                                                                                       |   | 11,785,470 |   | 9,373,788 |
| Net income (loss) per common share - Basic                    | $             (0.09) |   | $               0.42 |   | $            (0.48) |   | $            0.42 |
|                                                          |                                                                                  |   |                                                                                            |   |   |   |   |
| Net income (loss) per common share – Diluted:           |                                                                                  |   |                                                                                            |   |   |   |   |
| Net income (loss)                                             | $    (1,100,502)                                                  |   | $      4,501,875                                                  |   | $   (5,700,822) |   | $   4,464,810 |
| Net income allocated to Series A Preferred Shares             | -                                                                                     |   | (508,876)                                                                                       |   | - |   | (508,791) |
| Net income (loss)  available to common stockholders | $    (1,100,502)                                                  |   | $      3,992,999                                                  |   | $    (5,700,822) |   | $   3,956,019 |
| Weighted average common shares outstanding                    | 11,839,309                                                                            |   | 9,616,954                                                                                       |   | 11,785,470 |   | 9,373,788 |
| Dilutive securities                                           | -                                                                                     |   | 47,553                                                                                          |   | - |   | 43,874 |
| Weighted average common and dilutive shares outstanding       | 11,839,309                                                                            |   | 9,664,507                                                                                       |   | 11,785,470 |   | 9,417,662 |
| Net income (loss) per common share - Diluted                  | $             (0.09) |   | $               0.42 |   | $            (0.48) |   | $            0.42 |

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|                                 |   |                                                                                                       | December 31,                                                                                                     | June 30, |
|--------------------------------------|--------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|----------|
|                                 |   |                                                                                                       | 2010                                                                                                             | 2010     |
| Cost                                 |   | $               1,883,928  | $                3,323,539  |
| Gross unrealized gains               |   | 123,279                                                                                               | 173,658                                                                                                     |
| Gross unrealized losses              |   | (54,541)                                                                                                   | (35,008)                                                                                                         |
| Total available-for-sale investments |   | $               1,952,666  | $                3,462,189  |

|               | Fair Value                                                                                           | Quoted prices in active markets     (Level 1)       | Quoted prices in active markets     (Level 2)                                                                                         | Quoted prices in active markets     (Level 3)                                                                       |
|--------------------|------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|
| December 31, 2010; |                                                                                                 |                                                                         |                                                                                                                                                           |                                                                                                                                         |
| Money Market Fund  | $               1,409,820 | $           1,409,820 | $                          - | $                       - |
| Mutual Funds       | $               1,952,666 | $           1,952,666 | $                          - | $                       - |
| June 30, 2010;     |                                                                                                 |                                                                         |                                                                                                                                                           |                                                                                                                                         |
| Money Market Fund  | $               4,111,051 | $           4,111,051 | $                          - | $                       - |
| Mutual Funds       | $               3,462,189 | $           3,462,189 | $                          - | $                       - |

|                                              |   | Three months ended December 31,                                          |   | Six months ended December 31,                  |
|---------------------------------------------------|--------|--------------------------------------------------------------------------|--------|------------------------------------------------|
|                                              |   | 2010                                                                     |   | 2009                                           |   | 2010 |   | 2009 |
| Net income (loss)                                 |   | $        (1,100,502)   |   | $     4,501,875  |   | $      (5,700,822)   |   | $      4,464,810   |
| Unrealized loss on available-for-sale investments |   | (19,533)                                                       |   | (34,949)                             |   | (9,523)) |   | (7,926)   |
| Comprehensive income (loss)                       |   | $        (1,120,035)   |   | $     4,466,926  |   | $      (5,710,345)   |   | $      4,456,884   |

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|   | · | Bremelanotide, a peptide melanocortin receptor agonist, for treatment of sexual dysfunction, targeting female sexual dysfunction (FSD) and erectile dysfunction (ED) in patients non-responsive to current therapies. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Peptide melanocortin receptor agonists for treatment of FSD and ED. |
|--------|--------|---------------------------------------------------------------------|

|   | · | PL-3994, a peptide mimetic natriuretic peptide receptor A (NPRA) agonist, for treatment of acute exacerbations of asthma, heart failure and refractory or difficult-to-control hypertension. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | the development and testing of products in animals and humans; |
|--------|--------|----------------------------------------------------------------|

|   | · | product approval or clearance; |
|--------|--------|--------------------------------|

|   | · | regulatory compliance; |
|--------|--------|------------------------|

|   | · | good manufacturing practices; |
|--------|--------|-------------------------------|

|   | · | intellectual property rights; |
|--------|--------|-------------------------------|

|   | · | product introduction; |
|--------|--------|-----------------------|

|   | · | marketing, sales and competition; and |
|--------|--------|---------------------------------------|

|   | · | obtaining sufficient capital. |
|--------|--------|-------------------------------|

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|   | 10.1 | Separation Agreement, Waiver and Release by and between Palatin and Trevor Hallam, dated November 15, 2010 (incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K, filed with the SEC on November 19, 2010). |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

31.1    Certification of Chief Executive Officer.

31.2    Certification of Chief Financial Officer.

32.1    Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350. 

32.2    Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350.

|                                                                                     | Palatin Technologies, Inc.                                                                                                                                                                                                 |
|------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                     | (Registrant)                                                                                                                                                                                                               |
|                                                                                     |                                                                                                                                                                                                                       |
|                                                                                     |                                                                                                                                                                                                                       |
|                                                                                     |   /s/  Carl Spana                                |
| Date:           February 14, 2011 | Carl Spana, Ph.D.                                                                                                                                                                                                          |
|                                                                                     | President and                                                                                                                                                                                                              |
|                                                                                     | Chief Executive Officer (Principal                                                                                                                                                                                         |
|                                                                                     | Executive Officer)                                                                                                                                                                                                         |
|                                                                                     |                                                                                                                                                                                                                       |
|                                                                                     |                                                                                                                                                                                                                       |
|                                                                                     |    /s/  Stephen T. Wills                                                                 |
| Date:           February 14, 2011 | Stephen T. Wills                                                                                                                                                                                                           |
|                                                                                     | Executive Vice President - Operations and                                                                                                                                                                                  |
|                                                                                     | Chief Financial Officer (Principal                                                                                                                                                                                         |
|                                                                                     | Financial and Accounting Officer)                                                                                                                                                                                          |
|                                                                                     |                                                                                                                                                                                                                       |

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| 10.1 | Separation Agreement, Waiver and Release by and between Palatin and Trevor Hallam, dated November 15, 2010 (incorporated by reference to Exhibit 10.1 of our Current Report on Form 8-K, filed with the SEC on November 19, 2010). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|