TTNP Stock Price Increases 34.75%: Why It Happened

By Amit Chowdhry ● Nov 20, 2020
  • The stock price of Titan Pharmaceuticals, Inc. (NASDAQ: TTNP) has increased by 34.75% from $0.13 per share to $0.17 per share on Thursday, November 19. This is an explanation of why it happened.

The stock price of Titan Pharmaceuticals, Inc. (NASDAQ: TTNP) has increased by 34.75% from $0.13 per share to $0.17 per share. And Titan Pharmaceuticals was one of the most traded stocks on Thursday, November 19 with over 218 million shares traded. There are some explanations about why the stock price increased.

What does Titan do? Titan Pharmaceuticals is currently developing a six-month implantable formulation of Nalmefene (an opioid antagonist) — which is intended for the prevention of relapse to opioid addiction, following opioid detoxification according to RTTNews. And an investigational New Drug Application for the Nalmefene implant is expected to be filed with the FDA in the first half of 2021.

Recent Q3 Results

Titan Pharmaceuticals recently reported its financial results for the third quarter ended September 30, 2020, and it provided an update on its business. And the company reported that it completed a registered direct offering with $2.4 million in net cash proceeds in September and the company completed a public offering resulting in net cash proceeds of approximately $5.7 million last month. 

“Subsequent to the end of the third quarter, Titan began an important, focused restructuring to position the Company for future growth,” said Dr. Kate DeVarney, Ph.D, President and Chief Operating Officer of Titan. “We believe that our ProNeura platform, which has the potential to provide continuous drug delivery over extended periods of up to six to 12 months, offers potential key value-generating opportunities. These include the platform’s application to the recently-acquired JT-09, for which we plan to establish proof-of-concept as a treatment of chronic pruritus in the first half of next year. In addition, we remain committed to helping individuals impacted by the opioid epidemic through our ongoing, National Institute on Drug Abuse-funded nalmefene implant development program, with plans to file an investigational New Drug Application with the U.S. Food and Drug Administration in the first half of 2021.”

In the company announcement, Titan also revealed it announced a strategic restructuring where it will focus on ProNeura-based product development and discontinue its U.S. Probuphine implant sales and wind down Probuphine commercialization activities. 

Last month, Titan settled all of its debt obligations with Molteni & C. dei F.lli Alitti Società di Esercizio S.p.A and Horizon Credit LLC II. And Titan recently acquired JT Pharmaceuticals’ kappa opioid agonist peptide JT-09 for use in combination with Titan’s ProNeura long-term and continuous drug delivery technology for the treatment of chronic pruritus.

“In addition to refocusing our efforts on the ProNeura platform, our recent restructuring significantly reduced operating expenses, while our debt settlements restored our ability to fully capitalize on our IP,” added Dr. Marc Rubin, Titan’s Executive Chairman. “These, combined with the recent completion of two financings, positions Titan to execute on our new strategy.”

For the 3 months ended September 30, 2020, Titan reported approximately $1.1 million in revenue — which reflects about $0.1 million in product sales and approximately $1 million related to the company’s National Institute on Drug Abuse (“NIDA”) grant. This compared with revenues of approximately $0.9 million in the same period in 2019, which was comprised of $0.2 million in product sales and $0.8 million related to the NIDA grant. 

The product revenue during the three month period ended September 30, 2020, declined from the comparable periods in 2019 due to a substantial decrease in unit sales volumes, increased utilization of patient assistance programs, and the effects of the COVID-19 pandemic and the related shelter-in-place restrictions and clinic closures. 

And total operating expenses for the third quarter of 2020 were approximately $5.8 million compared with approximately $4.8 million from the same quarter in 2019 and consisted primarily of research and development (“R&D”) and selling, general and administrative (“SG&A”) expenses and costs of goods sold, inclusive of distribution expenses. The R&D expenses for the quarter ended September 30, 2020, were about $1.6 million, consistent with the same three-month period in 2019. And SG&A expenses for the 2020 third quarter were approximately $3.5 million, compared with approximately $3 million in the same quarter a year ago. The costs of goods sold for the third quarter of 2020 were approximately $0.7 million, compared with approximately $0.2 million the 2019 third quarter.

As of September 30, 2020, Titan had cash and cash equivalents of approximately $4.1 million, which the company believes — along with the proceeds of public offering — is sufficient to fund planned operations into the third quarter of 2021.

Major Restructuring

It was announced in the earnings that Sunil Bhonsle stepped down from his role as CEO. Dr. Rubin and Dr. DeVarney will oversee the company’s product development activities going forward. This major shift in management likely influenced the stock price increase as well.

Rumor About A Buyout

In several stock trading forums that I have been reading, it seems like some investors are buying the stock due to speculation about buyout rumors. This seems farfetched to me, but it seems to be a driver for the stock price increase over the last few trading days.

High Interest From Day Traders

TTNP is being mentioned by a number of penny stock day traders on forums, email newsletters, and websites. For example, TTNP was mentioned earlier this week on in an article titled “Penny Stocks On Robinhood To Buy Under $1; 170%-723% Price Targets.”