Titan Pharmaceuticals Inc (TTNP)

[jmbar2]

New 8-K is out. Highlights follow....

--------------
This Amendment (the “Amendment”) to the Current Report on Form 8-K filed by Titan Pharmaceuticals, Inc. (the “Company”) on December 19, 2012 provides additional disclosure regarding the following terms of the License Agreement (as defined in the Amendment) (i) the circumstances under which the Company will be entitled to receive regulatory milestone payments under the License Agreement and (ii) the range of royalties to be paid to the Company with respect to net sales of Probuphine ® .

Item 1.01. Entry into a Material Definitive Agreement.

On December 14, 2012, Titan Pharmaceuticals, Inc. (“Titan” or the “Company”) entered into a License Agreement (the “License Agreement”) with Braeburn Pharmaceuticals Sprl (“Braeburn”), wholly owned by Apple Tree Partners IV, L.P., a partnership affiliated with Apple Tree Partners. Pursuant to the License Agreement, the Company has granted Braeburn an exclusive right and license to commercialize Probuphine ® in the United States of America and its territories, including Puerto Rico, and Canada (the “Territory”). Titan will retain all of the rights to Probuphine ® outside the Territory.

In consideration of the rights granted to Braeburn under the License Agreement, Braeburn has paid the Company an upfront, non-refundable license fee of $15.75 million.

Additionally, Titan will receive $50 million upon FDA approval of the New Drug Application (NDA) for Probuphine ® and at such time ownership of the NDA will transfer to Braeburn.

The Company is also eligible to receive up to an additional $130 million upon the achievement of specified sales milestones and up to $35 million in regulatory milestones in the event of future NDA submissions and approvals for additional indications, including chronic pain.

Braeburn will also pay the Company tiered royalties on net sales of Probuphine ranging from the mid-teens to the low-twenties. In addition to the potential milestone payments, Apple Tree Partners IV has allocated in excess of $75 million to launch, commercialize and continue the development of Probuphine.