This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Titan Pharma: Run-Up Trade Into March FDA Panel

NEW YORK ( TheStreet) -- Titan Pharmaceuticals (TTNP) is developing Probuphine, a proprietary, long-acting form of the opioid dependence drug buprenorphine. Probuphine is implanted just under the skin of the upper arm and provides continuous delivery of drug for six months.

The FDA accepted Probuphine for priority review with an approval decision expected on April 30. Titan also expects FDA to convene an advisory panel to review Probuphine, likely in the second half of March.

Various oral forms of buprenorphine, including Suboxone, have been used to treat opioid dependence for years, with sales well in excess of $1 billion annually. But oral buprenorphine has its drawbacks, patients can forget to take their pills or choose to sell them illegally. Probuphine avoids these problems and should improve compliance.

Titan licensed U.S. and Canadian rights for Probuphine to Braeburn Pharma. Titan received $15.75 million upfront and is eligible for another $50 million if Probuphine earns FDA approval, plus additional milestone payments and double-digit royalties on sales. Braeburn has also committed $75 million towards commercial launch. Titan secured this licensing deal while their market cap was under $80 million, so the investment by Braeburn is substantial and meaningful.

With that setup, let's talk trading Titan. The first key event will be the FDA advisory panel in the second half of March. Run-up traders like myself love to trade FDA advisory panels because so much of the stock action is predictable. I expect Titan's stock price to continue to move higher the advisory panel nears. The FDA will release its Probuphine review two business days prior to the advisory panel meeting date, which is the opportunity for traders to safely exit with profits (hopefully.)

Titan is currently listed on the OTC bulletin boards but management said a Nasdaq listing is a 2013 goal. With shares running up to their advisory panel and their late April FDA approval decision date, up-listing to Nasdaq may be attainable in the near future.

Titan has enough cash from the Braeburn deal to carry it through the FDA advisory panel and its April 30 approval decision date. The U.S. market for buprenorphine was $1.3 billion in 2011 and growing. Titan estimates Probuphine sales could reach $300-500 million per year at peak.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
TTNP $0.74 6.51%
AAPL $111.08 3.10%
FB $89.27 2.30%
GOOG $609.40 1.90%
TSLA $245.70 3.00%

Markets

Chart of I:DJI
DOW 16,265.33 +206.98 1.29%
S&P 500 1,934.01 +20.16 1.05%
NASDAQ 4,707.7010 +71.5960 1.54%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs