Titan Pharmaceuticals Inc (TTNP)

[Doctor Detroit]

We will know soon enough: the stockholders meeting to vote on an increase in authorized shares or reverse split is supposed to occur by the end of August, which means a proxy statement for the meeting should be filed sometime in July.

Personally, I favor a reverse split. To me, the hardest ground to cover is the move from a sub-$1 penny stock to the $5 range where institutional investors will take note and buy up large positions. I think we would take an initial drop of around 15-20% in price if plans to effect a reverse split were announced...as it is conventionally viewed as a negative.

Right now, the stock price is $0.83 cents a share with 110 million outstanding, 138 million fully diluted. Assuming we slipped to 65 cents a share on the announcement of a reverse split, a 1 for 4 split would put the price at $2.60 a share with 27.5 million outstanding, and allow us to uplist to a real exchange (Amex or Nasdaq). I don't believe they would want less than 25 million shares outstanding, as that is very atypical for a publicly held company.

I believe TTNP would be in a much better position to benefit from approval of an NDA...with the share price rising immediately to over $10 per share (the equivalent of $2.50 per share with today's capitalization). Past $5.00 a share, the institutions get into the game...and the price climbs steadily. With today's capitalization on the OTCBB, I think we will be hard pressed to break $2.00 a share on NDA approval...lack of institutional interests and OTCBB games stack the odds against it.