Titan Pharmaceuticals, Inc. (OTC:TTNP) Crashes on FDA Refusal
When it comes to some penny stocks, no news is good news, and so was the case with Titan Pharmaceuticals, Inc. (OTC:TTNP) in the past few weeks. After a good start, this pharmaceutical stock drifted sideways without major jolts, until Tuesday when it crashed more than 41% to $1.19 on 7.5 million shares sold. While TTNP was a longer-term promise, the pharmaceutical business held enough risks to allow a sharp correction of the amazingly optimistic trend in 2013. 
The rise in the TTNP stock was mostly due to an expected positive outcome of a new FDA approval procedure, and when the outcome was negative, investors moved out. Pharma companies are dependent on new patents and treatments, and while TTNP holds a significant business, it still has weaknesses that would need better sales: 
- $5.06 million
- $2.5 million current portion of debt
- $1.2 million royalty revenue
- $8 million net loss
While the therapy proposed passed the test to show better than placebo results, the FDA announced it believed the dosage might be inadequate. After the agency announced its disapproval, the stock market reacted immediately. Further results about TTNP may be expected as the FDA gathers for a special discussion panel this Thursday.
While TTNP has several therapies already on the market, its latest bid to treat a widespread social problem- opioid addiction, could have spelled better results in the future. We may expect the company to restart its trials, leading to other optimistic climbs, but so far a few rough days may follow for the stock.
Another pharmaceutical contender that was lifted by the tide in 2013 was AP Pharma, Inc. (OTC:APPA), a company with less market exposure, but a strong message of upcoming patented drugs. The correction for APPA started sooner, in mid-February. So, while pharmaceutical researchers are a credible investment, their path to marketing success may sometimes mean a temporary crash. It is best to decide for yourself if you can afford such crashes.
