Titan Reports Third Quarter 2003 Results SOUTH SAN FRANCISCO,
Calif., Nov. 14 /PRNewswire-FirstCall/ -- Titan Pharmaceuticals,
Inc. today reported financial results for the third quarter and
first nine months of 2003. Operating expenses for the third quarter
of 2003 decreased approximately 24% to $6.5 million compared with
operating expenses of $8.5 million for the third quarter of 2002.
For the first nine months of 2003, operating expenses were
approximately $20.5 million, a reduction of $5.0 million compared
with operating expenses of $25.5 million for the first nine months
of 2002. Titan's net loss for the third quarter 2003 was $6.2
million, or $0.22 per share, compared to a net loss of $7.3
million, or $0.26 per share, for the same quarter in 2002. For the
first nine months of 2003, net loss was $19.4 million, or $0.70 per
share, compared to a net loss of $19.3 million, or $0.70 per share,
for the same nine-month period in 2002. Revenues for the first nine
months of 2003 were $28,000, compared to approximately $2.7 million
for the same nine-month period in 2002. The difference in revenue
is primarily due to a milestone payment Titan received from
Schering AG for Spheramine(R) in the first quarter of 2002.
Interest income, net of other expenses, for the third quarter 2003
was approximately $332,000 compared to $1.1 million for the same
quarter in 2002. For the first nine months of 2003, interest
income, net of other expenses, was $1.1 million compared to $3.6
million for the same nine-month period in 2002. At September 30,
2003, the Company had approximately $53.6 million in cash and
marketable securities. "Our reduction in operating expenses on a
quarter-over-quarter basis is in line with our strategic focus for
the reporting period," stated Dr. Louis R. Bucalo, Chairman,
President and CEO, "and has enabled the Company to maximize its
cash position, while advancing progress in our core development
programs." During the third quarter Titan announced additional
positive results in several of its core development programs, and
last month announced the acquisition of DITPA, a novel product in
clinical testing for the treatment of congestive heart failure.
Following is an update on the status and progress of Titan's five
core development programs: Spheramine(R) Titan has completed
enrollment of the first cohort of twelve patients in a randomized,
controlled, blinded, multi-center Phase IIb clinical study of
Spheramine in advanced Parkinson's disease, and enrollment of the
second cohort of 24 patients is proceeding on schedule. Schering
AG, Germany, Titan's corporate partner for the development of
Spheramine, is funding and co-managing the study. Spheramine is
Titan's novel cell therapy product in development for the treatment
of late-stage Parkinson's disease. Pivanex(R) Positive results from
a dose escalation study were presented at the 10th World Conference
on Lung Cancer in August, demonstrating that Pivanex and the
approved chemotherapeutic agent docetaxel can be administered
safely in combination to non-small cell lung cancer (NSCLC)
patients. In addition, Titan presented new data at the 94th annual
meeting of the American Association for Cancer Research in July
further demonstrating that Pivanex, administered in combination
with docetaxel, significantly increased anti-tumor activity in
NSCLC cells. Pivanex is a histone deacetylase inhibitor with
potential activity in a wide range of cancers. A Phase IIb study of
Pivanex in combination with docetaxel for the second-line treatment
of NSCLC is currently in progress. Gallium Maltolate Favorable
results from a 12-patient pilot clinical study evaluating the use
of oral gallium maltolate in the treatment of advanced Paget's
disease were presented at the 25th Annual Meeting of the American
Society For Bone and Mineral Research in Minneapolis, Minnesota in
September. The results of this study demonstrated that targeted,
potentially therapeutic serum levels of gallium can be safely
achieved with this oral formulation. Titan is currently completing
the Phase I portion of a Phase I/II clinical study of gallium
maltolate in cancer patients, and preclinical testing of gallium
maltolate in other disease settings is also ongoing. Gallium
maltolate is Titan's novel oral formulation of gallium, a
semi-metallic element with potential utility in cancer, bone
disease, and other diseases. Probuphine(TM) In September, at the
International Society of Addiction Medicine in Amsterdam, Titan
presented positive interim results for the first cohort of six
patients enrolled in Titan's pilot clinical study evaluating the
safety and efficacy of Probuphine, Titan's novel, proprietary
product in development for the treatment of opiate addiction. These
results demonstrated that all six patients treated with Probuphine
at the first dose level were safely switched from daily sublingual
buprenorphine therapy to Probuphine, with maintenance of
therapeutic benefit and no significant adverse events during the
first four months of this ongoing study. DITPA Titan recently
announced the acquisition of DITPA, a novel product in clinical
testing for the treatment of congestive heart failure (CHF). DITPA
is an orally active analogue of thyroid hormone that has
demonstrated in preclinical and clinical studies to date the
ability to improve cardiac function, without significant adverse
effects. Beneficial effects demonstrated in these studies include
improved cardiac output, as well as potential improvement in
measures of diastolic function. In addition, DITPA has also
demonstrated significant cholesterol and triglyceride lowering
capability in pilot clinical testing. A randomized, double blind
Phase II clinical study in patients with CHF will be initiated in
the next few months. This multicenter study is funded by a $3.8
million government grant from the federal Veterans Administration
(VA) system. About Titan Pharmaceuticals Titan Pharmaceuticals,
Inc. (ASE:TTP) is a biopharmaceutical company focused on the
development and commercialization of novel treatments for central
nervous system (CNS) disorders, cancer and cardiovascular
disorders. Titan's numerous products in development utilize novel
technologies that have the potential to significantly improve the
treatment of these diseases. Titan also establishes partnerships
with multinational pharmaceutical companies and government
institutions for the development of its products. The press release
may contain "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Such statements include, but are
not limited to, any statements relating to the Company's
development program and any other statements that are not
historical facts. Such statements involve risks and uncertainties,
including, but not limited to, those risks and uncertainties
relating to difficulties or delays in development, testing,
regulatory approval, production and marketing of the Company's drug
candidates, unexpected adverse side effects or inadequate
therapeutic efficacy of the Company's drug candidates that could
slow or prevent product development or commercialization, the
uncertainty of patent protection for the Company's intellectual
property or trade secrets and the Company's ability to obtain
additional financing if necessary. Such statements are based on
management's current expectations, but actual results may differ
materially due to various factors, including those risks and
uncertainties mentioned or referred to in this press release. TITAN
PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (in thousands, except per share amount) Three Months
Ended Nine Months Ended September 30, September 30, 2003 2002 2003
2002 (Unaudited) License and contract revenue $ -- $158 $28 $2,656
Total revenue -- 158 28 2,656 Operating expenses: Research and
development 5,262 7,202 16,639 21,607 General and administrative
1,239 1,314 3,878 3,915 Total operating expenses 6,501 8,516 20,517
25,522 Loss from operations (6,501) (8,358) (20,489) (22,866)
Interest income, net of other expense 332 1,062 1,109 3,588 Net
loss $(6,169) $(7,296) $(19,380) $(19,278) Basic and diluted net
loss per share $(0.22) $(0.26) $(0.70) $(0.70) Shares used in
computing basic and diluted net loss per share 27,653 27,642 27,646
27,642 CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December
31, 2003 2002 (unaudited) (Note A) Assets Cash, cash equivalents,
and marketable securities $53,620 $73,450 Prepaid expenses,
receivables, and other current assets 1,551 1,197 Total current
assets 55,171 74,647 Furniture and equipment, net 850 979
Investment in other companies 300 300 $56,321 $75,926 Liabilities
and Stockholders' Equity $3,785 $3,945 Current liabilities 1,241
1,241 Minority interest - Series B preferred stock of Ingenex, Inc.
51,295 70,740 Stockholders' Equity $56,321 $75,926 Note A: The
balance sheet has been derived from the audited financial
statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles
in the United States for complete financial statement presentation.
DATASOURCE: Titan Pharmaceuticals, Inc. CONTACT: Robert Farrell,
Executive Vice President & CFO of Titan Pharmaceuticals, Inc.,
+1-650-244-4990; or Mark Padgett, Media, +1-212-537-8082, or Dawn
Lauer, Investors, +1-212-537-8088, both of GCI Group, for Titan
Pharmaceuticals, Inc.
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