Traders were anything but sedate today when it came to buying shares of Titan Pharmaceuticals (OTC: TTNP). About two hours after the opening of the trading session, the company announced it had an agreement to sell 3.4 million shares of common stock to a potential licensee of the rights to commercialize Titan’s drug Probuphine, which proposes to treat opioid dependency. The $4.25 million deal has an expiration date of October 31, 2012, but may be extended to the last day of the year. Dr. Mark Rubin, chairman of Titan Pharmaceuticals, said he believes the investment in his company shows a strong indication of the licensee’s commitment to executing the licensing agreement in the near future. He added that the investment provides the company with enough capital to advance the Probuphine program through the New Drug Application.
The news certainly stimulated buyers of the stock into action. Traders began the trading session rather sleepily as the stock opened unchanged from the night before at $0.70 on barely a whisper of volume. Buyers leaped into action when news about the stock purchase agreement hit the tape. By the completion of the first hour of trading, shares traded for over $0.80. As traders prepared for lunch in New York, the stock pushed higher by another 14 cents. The stock drifted for the rest of the session and ended on its high for the day at $0.95 for a gain of nearly 32%. Over 3.5 million shares exchanged hands compared to an average daily volume of 76,000.
The activity today ended a five-month long slumber for the stock that saw shares trade at a new annual low of $0.60 in August. The stock had reached its 52-week high last October when shares traded for $1.78. The announcement on April 10, 2012, of a $5.5 million secondary stock offering including warrants sent share prices plunging by 37% in one day. Since April, the stock has meandered in a narrow price range. Traders have to wonder if today marked a turning point for higher stock prices in the future.
Some recent promotional activity on Titan Pharmaceutical stock includes a newsletter note on September 4, 2012, by OTC Tip Reporter that states: “It’s no secret that the biotech sector is setting itself up to potentially deliver staggering gains”. More newsletters can be viewed on Stockreads.com. Another 11 promotions can read on Stockpromoters.com.
The San Francisco-based biopharmaceutical company focuses on developing drugs to treat central nervous disorders, cardiovascular disease and cancer. Besides developing Probuphine for treating opioid dependency, the company also has the drug Fanapt used in the treatment of schizophrenia. Titan Pharmaceutical was founded in 1998.