Titan Pharmaceuticals Reports Third Quarter 2005 Results

SOUTH SAN FRANCISCO, Calif., Nov. 9 /PRNewswire-FirstCall/ -- Titan Pharmaceuticals, Inc. today announced financial results for the third quarter ended September 30, 2005.

Net loss for the third quarter of 2005 was approximately $6.4 million, or $0.20 per share, compared to a net loss of approximately $6.3 million, or $0.20 per share, for the same period in 2004. For the first nine months of 2005, our net loss was approximately $18.4 million, or $0.57 per share, compared to approximately $18.2 million, or $0.59 per share, for the same nine-month period in 2004.

Research and development expenses for third quarter 2005 were approximately $5.0 million, compared to $4.9 million for the same period in 2004. Research and development expenses were approximately $14.7 million for the first nine months of 2005 and $14.6 for the same nine-month period in 2004.

General and administrative expenses for the third quarter of 2005 were approximately $1.5 million, compared to $1.4 million for the same period in 2004. For the first nine months of 2005, general and administrative expenses were $4.1 million, compared to $3.9 million for the same nine-month period in 2004.

At September 30, 2005, the Company had approximately $18.8 million in cash and marketable securities.

Dr. Louis R. Bucalo, Chairman, President and CEO stated, “Our resources are currently focused primarily on the development of Probuphine(R) for the treatment of opioid addiction, and DITPA for the treatment of congestive heart failure. During this quarter we established an equity line of credit for up to $35 million to further support our product development programs. Spheramine(R) for the treatment of Parkinson’s disease, and iloperidone for the treatment of schizophrenia and related psychotic disorders, are funded by our corporate partners, Schering AG Germany and Vanda Pharmaceuticals, Inc., respectively.”

Clinical Development Programs

Probuphine(R)

Probuphine is a novel long-term treatment for opioid addiction that utilizes our proprietary ProNeura drug delivery system. We are currently finalizing further clinical development plans for Probuphine with regulatory authorities in the U.S. and other countries. In a previous 12 patient pilot study in the treatment of opioid dependence, Probuphine was well tolerated and demonstrated therapeutic benefit for a period of 6 months. We also plan to evaluate Probuphine in the treatment of chronic pain.

Iloperidone

Iloperidone is a proprietary antipsychotic agent in Phase III clinical development for the treatment of schizophrenia and related psychotic disorders. In 2004, Vanda Pharmaceuticals, Inc. acquired the worldwide rights to develop and commercialize iloperidone through a sub-license with Novartis Pharma, AG.

Spheramine(R)

Spheramine is a novel cell therapy product in development for the treatment of Parkinson’s disease. Enrollment in a multi-center, randomized, double blind Phase IIb clinical study of Spheramine in advanced Parkinson’s disease is continuing. We estimate that initial results from this study will be available by early 2007. Our corporate partner for the development of Spheramine, Schering AG, Germany, is funding this study. The U.S. Food and Drug Administration (FDA) has granted Fast Track designation for Spheramine and has also approved Orphan Drug designation for Spheramine for the treatment of advanced Parkinson’s disease.

DITPA

DITPA, an analogue of thyroid hormone (T3), is in development for the treatment of congestive heart failure (CHF) and cardiovascular disease. We have initiated a randomized, double blind, placebo controlled Phase IIb clinical study with DITPA in New York Hospital Association (NYHA) Class III and Class IV CHF patients with low T3 levels. The study will evaluate clinical and laboratory parameters related to severity of CHF, including change in global clinical status, echocardiographic parameters, BNP levels, exercise testing and quality of life measurements, in addition to safety. Enrollment in this study is progressing.

DITPA is also currently being evaluated in a randomized, double blind, placebo controlled Phase II study in patients with Class II-IV CHF, sponsored by the Department of Veterans Affairs Cooperative Studies Program, and funded by a $3.8 million grant.

In addition to the above studies, we also plan to evaluate DITPA in the treatment of hyperlipidemia in individuals receiving statins who do not achieve sufficient cholesterol reduction.

About Titan Pharmaceuticals

Titan Pharmaceuticals, Inc. is a biopharmaceutical company focused on the development and commercialization of novel treatments for central nervous system disorders, cardiovascular disease, bone disease and other disorders. Titan’s products in development utilize novel technologies that have the potential to significantly improve the treatment of these diseases. Titan also establishes partnerships with government institutions and other leading pharmaceutical development companies. For more information, please visit the Company’s website at http://www.titanpharm.com

The press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to the Company’s development program and any other statements that are not historical facts. Such statements involve risks and uncertainties, including, but not limited to, those risks and uncertainties relating to difficulties or delays in development, testing, regulatory approval, production and marketing of the Company’s drug candidates, unexpected adverse side effects or inadequate therapeutic efficacy of the Company’s drug candidates that could slow or prevent product development or commercialization, the uncertainty of patent protection for the Company’s intellectual property or trade secrets and the Company’s ability to obtain additional financing if necessary. Such statements are based on management’s current expectations, but actual results may differ materially due to various factors, including those risks and uncertainties mentioned or referred to in this press release.

TITAN PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amount) Three Months Ended Nine Months Ended September 30, September 30, 2005 2004 2005 2004 (unaudited) (unaudited) License revenue $1 $ - $28 $1 Operating expenses: Research and development 5,001 4,858 14,723 14,569 General and administrative 1,539 1,367 4,139 3,853 Total operating expenses 6,540 6,225 18,862 18,422 Loss from operations (6,539) (6,225) (18,834) (18,421) Other income, net 161 (45) 419 215 Net loss $(6,378) $(6,270) $(18,415) $(18,206) Basic and diluted net loss per share $(0.20) $(0.20) $(0.57) $(0.59) Weighted average shares used in computing basic and diluted net loss per share 32,390 32,137 32,363 31,084 CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) September 30, December 31, 2005 2004 (unaudited) (Note A) Assets Cash, cash equivalents, and marketable securities $18,825 $36,322 Prepaid expenses, receivables and other current assets 1,198 1,110 Total current assets 20,023 37,432 Furniture and equipment, net 867 1,044 Investment in other companies 150 150 Deferred offering costs 160 - $21,200 $38,626 Liabilities and Stockholders’ Equity Current liabilities $4,489 $3,672 Minority interest -- Series B preferred stock of Ingenex, Inc. 1,241 1,241 Stockholders’ Equity 15,470 33,713 $21,200 $38,626 Note A: The balance sheet has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles in the United States for complete financial state

Titan Pharmaceuticals, Inc.

CONTACT: Company - Robert Farrell, Executive Vice President & CFO of TitanPharmaceuticals, Inc., +1-650-244-4990; or Media/Investors - JonathanFassberg of The Trout Group for Titan Pharmaceuticals, Inc.,+1-212-477-9007

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