Titan Pharmaceuticals, Inc. (OTCMKTS:TTNP) issued a promising Press Release stating that its Phase III clinical trial of Probuphine targeting Opioid addiction met the previously announced primary endpoint of non-inferiority along with the secondary effectiveness endpoints. Now when the company have achieved positive results from Phase III study, it plans to submit NDA for Probuphine during the second half of the year.

Once the U.S. FDA approves the drug, it will be commercially launched in the market next year. After the announcement, investors rushed to buy the stock. The stock opened with a gap up at $0.96 but slowly lost its steam and closed with gains of over 11% at $0.89. In yesterday’s session, the stock declined more than 3% to close the trading session at $0.861.

The performance

Even before the results of Phase III trial of Probuphine were announced, Titan Pharmaceuticals, Inc. (OTCMKTS:TTNP) was at the forefront of the Biopharma penny stocks with a robust balance sheet. As per the financial report of the first quarter, the company reported cash of $13.4 million. The total current assets came at $17.2 million and total current liabilities stood at $5.3 million.

The revenue in the first quarter of the year came at $900,000 while net loss was $4.8 million. A big part of the net loss was incurred due to a non-cash loss recorded as a result of change in the reasonable value of warrants. If the company’s pace of cash utilization remains the same, the reserves are expected to keep the company completely funded through 4Q2016.

The other highlight

Titan Pharmaceuticals, Inc. (OTCMKTS:TTNP) has total authorized shares of 125 million out of which 110 million are outstanding shares. It indicates that the company doesn’t have enough room to issue all of the shares related with their outstanding warrants in case all of them are exercised. Therefore, the company can consider a reverse stock split or increase authorized amount during the shareholder meet to be held on August 31, 2015.