Titan Pharmaceuticals, Inc. common stock (NASDAQ: TTNP) is seeing tremendous gains early on in the trading session this morning. However, if you go digging for news, you’re not going to find much, unless you dig deep. Nonetheless, there is a good reason for the gains, and its correlated to movement we’re seeing in Knight Therapeutics. Today, we’ll talk about:
- Why TTNP is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why TTNP Is Headed Up
As mentioned above, Titan Pharmaceuticals is flying early on in the trading session this morning, but the company hasn’t released any news of their own. Nontheless, the gains are being caused by news from Knight Therapeutics. In a press release issued early this morning, the company announced the commercial availability of PROBUPHINE for the management of opiod dependence. So, what does this have to do with TTNP?
The answer is simple. Knight Therapeutics licensed the exclusive right to distribute PROBUPHINE in Canada from TTNP. Of course, the license includes commercialization milestones, at least one of which was likely hit with today’s announcement. On top of that, the company has the potential to earn royalties on sales. So, this announcement means that the company will see revenue ahead. In a statement, Sunil Bhonsle, CEO at TTNP, had the following to offer:
The approval of Probuphine by Health Canada earlier this year was a milestone and we look forward to supporting our partner Knight Therapeutics in this next phase… The commercial launch of Probuphine provides the Canadian medical community with a novel, long-term treatment alternative that can provide benefits to many patients suffering from this disease.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news causes moves. In the case of Titan Pharmaceuticals, the news proved to be overwhelmingly positive. After all, the commercialization of PROBUPHINE will ultimately lead to revenue from the company due to royalties and could cause milestone payments to be made. So, it comes as no surprise that excited investors are pushing the stock on a run for the top. At the moment (10:06), TTNP is trading at $0.44 per share after a gain of $0.066 per share or 17.89% so far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Moving Forward
Moving forward, the CNA Finance team will continue to keep a close eye on TTNP. In particular, we’re interested in following the story surrounding the commercialization of PROBUPHINE in Canada and the revenue generated through the action. Nonetheless, we’ll continue to keep a close eye on the news and bring it to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!