Titan Pharmaceuticals, Inc. (OTCBB:TTNP) Tanks After Jump
Titan Pharmaceuticals, Inc. (OTCBB:TTNP) had a nice green run from June 11 to June 19, managing to rise all the way up to $0.845 by last Thursday’s closing bell. Unfortunately, the climb’s last jump was made possible due to a rather extensive pump campaign targeting the company, so it was pretty much clear that TTNP was not likely to retain that last bit of growth.
Paid or not, pumps are always bad news for investors. At best, they erode the stock’s credibility, and more often than not decrease its value unduly. Luckily for TTNP enthusiasts, the latter hasn’t happened yet to the company. The company’s inevitable stumble that followed its rapid chart climb more or less obliterated the gains it had made on June 19, but didn’t take it any further down in the June 20 trading session.
A bit of due diligence reveals that, presently, TTNP is one of the more financially sound medical companies on the OTC Markets. Its latest 10-Q, for the period ended March 31, 2014 showed the following figures:
- Cash – $10.2 million
- Total current assets – $14.6 million
- Total current liabilities – $9.6 million
- Revenues – $911 thousand
- Quarterly net loss – $1.8 million
True, TTNP isn’t really making any money yet, but its net loss seems manageable and, unlike most other companies in the branch, it does not appear to be struggling with crushing debt. The amount of assets it has and the $10 million in cash at its disposal are both reassuring signs. With that kind of money and proper management, TTNP might eventually manage to bring a product to the market.
Sadly, commercialization is not likely to come any time soon – the company’s flagship product, a drug called Probuphine, has not yet even been submitted for an NDA approval. Still, although TTNP seems to be optimistic about this particular product, investors would do well to remember that, even if the trials it will undertake go without a hitch, it will take at least a year of testing before it can be approved. And even if that stage is reached, a rollout will take even more time.
The negative effects of thursday’s pump campaign can still be felt – presently, TTNP is down 3.5% in today’s early trading.