Titan Pharmaceutical, Inc. (OTC:TTNP) Attracts Investors on Nearing FDA Verdict
Pharmaceutical companies run on a make it or break it regime, and Titan Pharmaceuticals, Inc. (OTC:TTNP) seems to be making it, charting a steep upward move of its stock. The buying volumes are near their all-time highs, and the ticker tripled its price in the past months. The stock was headed downward in the fall, and we ended up commenting on a pessimistic note. But lacking a paid pump, it is curious to see what caused this ticker to roar into new heights.
The news that may be bringing a warm spring for TTNP is the long-awaited approval for the Probuphine drug delivery system. The anti-addiction drug awaits the FDA verdict at the end of April, and we may see investors clamoring for TTNP and propping up the stock price which is nearing $2.50.
The financials of Titan are relatively healthy, for a pharmaceutical company that has to face the rigors and long waiting periods of testing and approvind a drug. The latest filing shows the following data:
- $5.06 million dollars
- $2.5 million current portion of debt
- $1.2 million royalty revenue
- $8 million net loss
Titan seems to be holding up well, licensing its technologies, but still drug development saddles a company with large accumulated losses and debt. Still, the company can rely on patented drugs which it distributes through giant Novartis. The patents will be good until 2016, but hopefully Titan has another therapy in the pipeline. Still, last spring TTNP tanked to 68 cents as it announced a new stock offering to improve its financial situation.
Another good piece of news that has been propping the stock up since October is the preferential status for Probuphine, meaning the FDA will use a shorter review procedure since the drug is promising to deliver desirable therapeutic results of social significance.
Markets paint a similar picture for AP Pharma, Inc. (OTC:APPA), another company on the verge of FDA approval. According to experts, investor attention for pharmaceutical tickers clusters around the dates of an upcoming approval decision, so this may explain why APPA trades near its 52-week highs. The company recently started a procedure to be listed on NASDAQ and attract higher volumes and a wider source of stock financing.
Keeping the nature of the business in mind, use your common sense before adding a pharmaceutical small cap to your portfolio- along with surprising climbs comes the risk of sharp corrections, as well as the danger of losing enthusiasm if the company is long in achieving its marketing goals.