{"id":1362,"date":"2013-05-02T07:11:46","date_gmt":"2013-05-02T07:11:46","guid":{"rendered":"\/?p=1362"},"modified":"2013-05-02T07:24:01","modified_gmt":"2013-05-02T07:24:01","slug":"titan-pharmaceuticals-inc-otcbbttnp-wiped-out-on-fda-quotnoquot","status":"publish","type":"post","link":"\/articles\/titan-pharmaceuticals-inc-otcbbttnp-wiped-out-on-fda-quotnoquot\/","title":{"rendered":"Titan Pharmaceuticals, Inc. (OTCBB:TTNP) Wiped Out on FDA "No""},"content":{"rendered":"

Pharmaceutical stocks are a fragile thing. Most companies show long-term potential and impress with a great development story. But in the case of Titan Pharmaceuticals, Inc. (OTCBB:TTNP<\/a>) it takes a small event to tip the scales- negative news from the FDA. \"TTNP0502.png\" <\/p>\n

All of April, TTNP<\/a> was supported by the hope that the Food and Drugs Administration would in the end approve the anti-addiction therapy of Titan. Before that, a non-binding negative opinion of the treatment made the stock crash, then it recovered for a while and drifted sideways, awaiting the April 30th verdict. But when it turned a no, TTNP<\/a> was wiped out. The negative comments on March 19th caused TTNP<\/a> to slide down 40%. \"APPA0502.png\"<\/p>\n

Nearly 18 million shares were sold, and TTNP<\/a> slid nearly 74% to 43 cents. The FDA rejection had a surprise element, since the pre-approval committee of experts voted for the treatment 10 to 4, although voicing a special opinion. But the game is not entirely over for TTNP<\/a>, as the company has received recommendations to improve its therapy and present a higher-dosed treatment that according to the FDA experts may be more efficient.<\/p>\n

However, this will take time and will turn out a whole new story for the TTNP<\/a> stock. For one, it may trigger valley buying, as Titan is still considered a company with a long-term potential. The Probuphine treatment was already receiving favorable opinions, as Titan managed to get an upfront payment of $15 million even before approval for the rights to the drug. In case of a positive verdict, Braeburn Pharmaceuticals and its owner, the fund Apple Tree Partners, would have paid $50 million more. Also, TTNP<\/a> missed on the market for addiction treatments, in which the top two drugs of choice generate around $1.3 billion annual sales in the USA.<\/p>\n

Another high-flying pharmaceutical ticker that went significantly up in 2013 was AP Pharma, Inc. (OTCBB:APPA<\/a>). The graph shows clearly what the FDA rejection did to the stock levels, and what the size of the recovery was.<\/p>\n

In case of pharmaceutical stocks, there is attractive long-term potential and the expectation of approval may lead to a high market price. Still, stay away from the most high-flying ones, unless you can afford the loss when a negative event causes a crash.<\/p>\n","protected":false},"excerpt":{"rendered":"

Pharmaceutical stocks are a fragile thing. Most companies show long-term potential and impress with a great development story. But in the case of Titan Pharmaceuticals, Inc. (OTCBB:TTNP) it takes a small event to tip...<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[41,11],"class_list":["post-1362","post","type-post","status-publish","format-standard","hentry","category-news","tag-appa","tag-ttnp"],"_links":{"self":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/1362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/comments?post=1362"}],"version-history":[{"count":0,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/1362\/revisions"}],"wp:attachment":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/media?parent=1362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/categories?post=1362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/tags?post=1362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}