Titan Pharmaceuticals Falls Through the Floor (TTNP)

Titan Pharmaceuticals (OTC: TTNP) released second quarter results this morning that showed revenues doubling to $1.4 million from the same period in 2011. The top line consisted of royalties on the net sales of Fanapt. Operating expenses in the quarter decreased by 36% from one year ago. For the quarter, the company reported a net of loss of $1.7 million, or a loss $0.03 per share, compared to a loss of $0.12 per share in the second quarter of 2011.

Traders greeted the earnings with little enthusiasm as the stock finished the final day of the week with a 10% loss to close at $0.65. Sellers got the upper hand early, driving share prices down to 12 cents to a fresh 52-week low at $0.60 in the first 90 minutes of trading on volume greater than the daily average for the stock. As stomachs began to grumble in anticipation of the lunch hour, the stock rebounded a bit into the closing bell. The number of shares traded on the day topped 400,000, which easily out-distanced the volume on an average day by nearly 250,000.

On April 10, 2012, the company announced plans to raise $5.5 million in a direct stock offering. The money would come from institutional investors in exchange for 6.5 million shares of common stock and warrants to purchase an additional 13 million shares. The news sent share prices reeling. The stock fell 38% from $1.10 to $0.68. Since the second week of April, shares have traded in a range between $0.79 and $0.65. Traders must wonder if today’s break to a new low indicates another down leg. Another concern brought up on Twitter is whether more stock dilution lies ahead.

Titan Pharmaceuticals is a biopharmaceutical company engaged primarily in the development of therapies for the treatment of central nervous systems disorders. The company’s main focus includes the development of Probuphine for the treatment of opioid addiction, Lloperidone for schizophrenia, and Spheramine for Parkinson’s disease. The present concern for Titan Pharmaceutical involves its New Drug Application (NDA) for Probuphine to the FDA. In several clinical studies, the drug has been found to be statistically effective. The company was founded in 1992 and is headquartered in San Francisco, California. Titan Pharmaceutical faces competition from some large cap players that includes Johnson and Johnson (NYSE: JNJ), Pfizer (NYSE: PFE), and Bristol Myers Squibb (NYSE: BMY).

Stock promoters remain rather silent on the stock. Past comments can be viewed on both Stockreads.com and Stockpromoters.com. On Twitter today, several people commented on the stock. @StockDiva talked about the earnings announcement and @SteveWolters shed some light on possible debt and dilution issues. These concerns may well weigh on traders minds over the weekend.

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Published by Alan Masterson

Alan has over 25 years of trading experience in the U.S. equity markets. He began his career in finance working on a program trading desk specializing in over-the-counter stocks. His career progressed from that point to his current position as senior trader on an institutional trading desk. In the evenings, Alan teaches economics at a local community college. He has contributed articles to various publications over the last six years, including feature articles for an economics magazine and various financial blogs. You may contact Alan via his email (alanmasterson@wallstreetpr.com) or his Google+ page (https://plus.google.com/103338576216002376250).