Maxim Group upgraded Titan Pharmaceuticals (NASDAQ:TTNP) to “buy” from “hold,” establishing a $1 price target as the company has raised capital and removed a financing overhang. The stock was quoted at 20 cents in afternoon trading on Oct. 23.
Analyst Jason McCarthy writes that the overhand was the basis of his previous downgrade in September 2019. “Our $1 price target is based on assumptions around the continued relaunch of Probuphine for the treatment of opioid use disorder (OUD),” he added.
“With cash runway, in our view, the shares should be positioned to rise in value as focus turns towards driving Probuphine revenue and also activity around the NIH-funded nalmefene program for the prevention of opioid addition relapse,” Mr. McCarthy said.
Probuphine is a buprenorphine implant approved in the U.S., Canada, and EU for the treatment of OUD. The active ingredient in Probuphine is buprenorphine, a partial opioid agonist. While oral administration is the historical standard of care, Probuphine offers an alternative route of administration; it is placed subdermally in the arm, providing steady-rate release of buprenorphine for six months, which is intended to mitigate complications with oral dosing, including compliance, stigma with daily dosing, and potential misuse.
