Titan Pharmaceuticals (TTNP) Stock Climbs on Debt Settlement News

Titan Pharmaceuticals TTNP Stock News

Titan Pharmaceuticals, Inc. common stock (NASDAQ: TTNP) is making a run for the top in the market this morning, and for good reason. The company announced that it has reached a debt settlement agreement, helping to add stability to the its financial foundation. Here’s what’s going on:

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TTNP Stock Soars on Debt Settlement Agreement

In the press release, Titan Pharmaceuticals said that it entered into an agreement to settle all of its debt obligations with Molteni & C. dei F.lli Alitti Societa di Esercizio S.p.A. and Horizon Credit LLC. Importantly, the debt was secured against all assets of Titan.

According to the terms of the agreement, Molteni and Horizon have agreed to settle their debts for a total payment of $1.6 million in cash. The amount owed on these accounts previously totalled about $5.2 million. In exchange for the discount, TTNP will also transfer rights of certain Probuphine assets to Molteni. These assets include equipment, inventory, and non-U.S. Probuphine intellectual property.

The company has also agreed to terminate its rights to future payments under its asset purchase, supply, and support agreement with Molteni.

In a statement, Dr. DeVarney, President and CEO at TTNP, had the following to offer:

Reaching agreement on the settlement of the outstanding debt is a major step in the restructuring of Titan, and we appreciate the timely action and cooperation of Molteni and Horizon in accomplishing this goal. We are making good progress in closing down the U.S. commercial activities for Probuphine, and except for the required pharmacovigilance and REMS support to health care providers who have patients in treatment, we will have completed this task during the quarter.

This Is Big News

The news released by Titan Pharmaceuticals this morning proved to be overwhelmingly positive. Through the settlement agremeent, the company will maintain rights to US Probuphine intellectual property, while avoiding potential default that could lead to the seizure of all of the company’s assets.

All in all, this transaction places TTNP on strong financial footing, giving the company a foundation from which to build after a relatively troubling time. All in all, this is exciting news, making TTNP a stock that’s worth watching.

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