Titan Pharmaceuticals, Inc. (NASDAQ: TTNP), based in South San Francisco, CA, is a commercial stage company developing proprietary therapeutics with its ProNeura™ long-term, continuous drug delivery technology. The company’s lead product is Probuphine®, a novel and long-acting formulation of buprenorphine for the long-term maintenance treatment of opioid dependence.
The company recently announced the pricing of an underwritten public offering with expected total gross proceeds of $9,500,000, before deducting underwriting discounts, commissions and other offering expenses payable by the Company.
Before this on August 14th, the company reported financial results for the second quarter ended June 30, 2018 and provided an update on its business. The company is making significant progress in transitioning to a commercial company. Moving forward, it will be focusing on four key market segments: high Probuphine-prescribing physicians with long-term recovery-oriented treatment programs; residential facilities that utilize medication-assisted treatment; academic institutions with addiction residency and fellowships programs; and the criminal justice system.
Titan’s Executive Chairman, Dr. Marc Rubin, commented, “We are encouraged by the early progress we have made in the relaunch of Probuphine in the U.S., and continue to work closely with Molteni and the team of addiction medicine experts that we have assembled to help position Probuphine for global success.”
More recently on September 4th, the company announced the initiation of a pilot program in collaboration with the Nevada Center for Behavioral Health (NCBH) to evaluate a medication-assisted treatment (MAT) program utilizing Probuphine (buprenorphine) implant for Opioid Use Disorder (OUD) patients within the State of Nevada criminal justice system. The management is looking forward to seeing the results of this pilot MAT program for OUD patients, both inside and, ultimately, outside of Nevada’s prison and jail systems.
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Driven by its favorable fundamentals, Titan has become a momentum stock in the recent past. The company is continuously progressing towards commercialization stage following reacquisition of Probuphine® rights in the U.S.
Key & unique differentiating factor of the company:
Lead product, Probuphine, is an implant formulation of buprenorphine for the long-term maintenance treatment of opioid use disorder (OUD)
- Approved in U.S. and Canada, under regulatory review in EU
- An important therapeutic option to fight the growing opioid addiction pandemic
ProNeura™ platform technology provides continuous delivery, maintaining a stable blood level of selected drugs for the treatment of addiction and other disease categories
- Pain, Parkinson’s disease, malaria, diabetes, thyroid disease
The company is aggressively evaluating the market for opioid use disorder and start laying the necessary groundwork and strategies to position Probuphine for success. The market is bullish about the significant and growing market for Probuphine, which has the potential to address critical unmet needs in this global epidemic.
The market cap of just $5.4 million and share now ruling at $0.20, can move to a level of about $1.5 -$2 in the next six to twelve months. Research firms are positive about the performance of Titan Pharmaceuticals, Inc. (TTNP) with most of them predicting a $1.5 – $2 per share price target over the near to medium term. Per www.marketbeat.com, Their average twelve-month price target is $2.00, suggesting that the stock has a possible upside of 900.00%. The high price target for TTNP is $2.00, and the low-price target for TTNP is $2.00. Considering all this, the company is in an extremely favorable risk-reward position, and value investors should consider exposure in this sector as the backdrop remains favorable.
Description & about the Company: Titan Pharmaceuticals, Inc. (NASDAQ: TTNP), based in South San Francisco, CA, is developing proprietary therapeutics primarily for the treatment of select chronic diseases.
The company’s lead product is Probuphine®, a novel and long-acting formulation of buprenorphine for the long-term maintenance treatment of opioid dependence. Probuphine employs Titan’s proprietary drug delivery system ProNeura™, which is capable of delivering sustained, consistent levels of medication for three months or longer.
Approved by the FDA in May 2016, Probuphine is the first and only commercialized treatment of opioid dependence to provide continuous, around-the-clock blood levels of buprenorphine for six months following a single procedure. The ProNeura technology has the potential to be used in developing products for treating other chronic conditions such as Parkinson’s disease and hypothyroidism, where maintaining consistent, around-the-clock blood levels of medication may benefit the patient and improve medical outcomes.
Quarterly Financial Results (in, thousands):
Revenue: For the three months ended June 30, 2018, Titan reported approximately $2.7 million in revenue, compared with approximately $77,000 in the same period in 2017. Revenues for the second quarter of 2018 reflect approximately $0.5 million related to the amortization of deferred revenue related to the sale to L. Molteni & C. Dei Frattelli Alitti Società Di Esercizio S.P.A. (“Molteni”) of the European intellectual property rights to Probuphine in March 2018, $7,000 related to the recognition of royalties earned on net sales of Probuphine by Braeburn prior to the termination of the Braeburn license, approximately $2.1 million related to terms of the license termination agreement, and $75,000 generated from Titan’s own sales of Probuphine after the return of the Braeburn license. Revenue for the 2017 period reflects the recognition of royalties earned on net sales of Probuphine by Braeburn.
Profitability: Net loss applicable to common shareholders in the second quarter of 2018 was approximately $0.9 million, or approximately $0.04 per share, compared with a net loss applicable to common shareholders of approximately $3.5 million, or approximately $0.16 per share, in the same quarter in 2017.
Liquidity and financial flexibility: Cash Position as at June 30, 2018, Titan had cash of approximately $1.6 million. Also, the company recently priced its public offering with expected total gross proceeds of $9.5M.
Key risk factors and potential stock drivers:
- Successful commercialization of Probuphine would lead future direction for the company. Any adversities related to this might adversely impact the overall investor sentiments.
- TTNP is still an early stage entity and has not yet generated meaningful revenue and will likely operate at a loss as it grows its market position and seeks ways to monetize it.
- The company is offering several new convertible securities, which would have the potential dilution risk for the existing shareholders.
- TTNP has a history of operating losses. Therefore, any time or cost overrun in its ongoing R&D activities and its impact on business & financial profile will remain a key business sensitivity factor.
- On Friday, Oct 12th, 2018, TTNP closed at $0.2011, with a robust average volume of 2.5 million shares exchanging hands. Market capitalization is $5.44 million. The current RSI is 20.49
- At $0.2011, shares of TTNP are trading below its 50-day moving average (MA) at $0.57 and below its 200-day moving average (MA) at $0.91
- The present support and resistance levels for the stock are at $0.19 & $0.23 respectively.