Titan Pharmaceuticals (NASDAQ:TTNP) entered into an asset purchase agreement with Fedson for the sale of certain ProNeura assets, including Titan’s portfolio of drug addiction products, in addition to other early development programs based on the ProNeura drug delivery technology.
The company’s addiction portfolio consists of the Probuphine and Nalmefene implant programs.
Under the accord, Fedson would purchase the ProNeura assets from Titan for an upfront purchase price of $2-million, with $1-million on closing, and $1-million to be held in escrow pending completion of certain conditions.
Titan also would be eligible for potential milestone payments of up to $50-million on future net sales of the products and would receive singl- digit royalties on future net sales of the products. The transaction is expected to close 10 days following signing of the agreement.
“This transaction provides the opportunity for two much-needed products for the treatment of opioid use disorder to continue, with the potential return of Probuphine as an available treatment option and the possible continuation of the development of the Nalmefene product, and allows Titan to renew our focus on extracting value from our principal asset, TP-2021, for the treatment of pruritus,” Kate Beebe DeVarney, Ph.D., president and COO of Titan, said in a statement.
David Lazar, CEO of Titan, said the injection of this upfront non-dilutive capital, with the potential for future milestone and royalty payments not only “strengthens our current balance sheet but provides future upside potential.”
