SOUTH SAN FRANCISCO, CA -- (Marketwire) -- 03/15/13 -- Titan Pharmaceuticals, Inc. (OTCBB: TTNP) today reported financial results for the fourth quarter and year ended December 31, 2012.
Total revenues for the year 2012 were approximately $7.1 million, compared to approximately $4.1 million in 2011. Revenues consisted of approximately $4.8 million in royalty revenues on net sales of Fanapt®, which were paid by Titan to Deerfield Management in accordance with the terms of the agreements entered into in 2011, approximately $1.7 million in licensing revenues associated with the premium paid for Titan's common stock by an affiliate of Braeburn Pharmaceuticals pursuant to the September 2012 stock purchase and option agreement and approximately $0.6 million related to the recognition of the non-refundable up-front fee received from Braeburn for the exclusive U.S. and Canadian commercialization rights for Probuphine® in December 2012.
Total operating expenses for the year 2012 were approximately $15.5 million, compared with approximately $14.6 million for 2011, and consisted largely of research and development (R&D) expenses of approximately $10.6 million, compared to approximately $11.2 million for 2011. This decrease in R&D costs was primarily associated with a decrease in external R&D expenses related to the Phase 3 clinical trials for Probuphine®, which were completed in 2011. This was offset by expenses related to the establishment of a commercial scale manufacturing operation at DPT Laboratories and preparation and submission of a New Drug Application (NDA) for Probuphine with the U.S. Food and Drug Administration (FDA) in October 2012. General and administrative (G&A) expenses for 2012 were approximately $4.9 million, compared to approximately $3.4 million in 2011. The increase in general and administrative expenses was primarily related to increases in non-cash stock compensation costs of approximately $0.8 million and employee and consultant related costs of approximately $0.6 million.
Net other expense for the year 2012 was approximately $6.8 million, compared to approximately $4.7 million in 2011. The increase in net other expense during 2012 was primarily related to a $1.8 million non-cash loss related to increases in the fair value of the warrants issued to Deerfield and the warrants issued as part of the April 2012 financing transaction as well as a small increase in the interest expense on the Deerfield long-term debt.
Net loss applicable to common stockholders for 2012 was approximately $15.2 million, or $0.23 per share, compared to a net loss of approximately $15.2 million, or $0.26 per share, for 2011. At December 31, 2012, Titan had cash and cash equivalents of approximately $18.1 million compared to approximately $5.4 million at December 31, 2011, reflecting proceeds from the sale of approximately $5.5 million of shares of common stock and warrants to institutional investors in April 2012, the execution of the $4.25 million stock purchase and option agreement in September 2012, the exercise of Series B warrants for approximately $4.9 million in October 2012 and the receipt of a $15.75 million non-refundable up-front payment for the license of the exclusive rights to commercialize Probuphine in the U.S. and Canada in December 2012. Titan believes that its working capital at December 31, 2012, together with the FDA's reimbursement of the $2 million NDA filing fee, is sufficient to fund planned operations through June 2014.
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