Titan Pharmaceuticals Inc. (NASDAQ:TTNP) has announced that it has entered an agreement to settle all its debt obligations with Molteni & C. and Horizon Credit LLC II.
Titan acquires JT-09 from JT-Pharmaceuticals
The pharmaceutical company also announced the completion of an agreement to acquire JT Pharmaceuticals Inc.’s kappa opioid agonist peptide JT-09. Titan acquired JT-09 to use in combination with its ProNeura® continuous drug delivery tech platform for treating chronic pruritus.
Under the terms of the agreement to acquire JT-09, Titan will receive future milestone payments subject to attaining regulatory milestones. This includes commercial, regulatory approval and single-digit percentage payments on net product sales. Titan COO and President Kate Devaney said that non-clinical data demonstrate that subcutaneous JT-09 ProNeura implants will potentially deliver JT-09 therapeutic concentrations for up to six months. She said that looks forward to clinical studies in 1H 2021 to establish a proof-of concept.
Titan settles debt with Molteni and Horizon
The deal’s completion was subject to the closing of the company’s previously announced $8 million underwritten public offering completed on October 30. Pursuant to the agreement terms, Molteni and Horizon will settle the $5.2 million outstanding debt in exchange for payment from Titan of around $1.6 million in cash. The deal also involved the transfer of some Probuphine assets to Molteni, including inventory and non-US Probuphine IP, equipment, and the cessation of rights to future Titan payments under the asset purchases and supply agreement with Molteni.
Marc Rubin, the executive chairman of Titan, said that there are no remaining liens on the company’s assets following the debt settlement with Horizon and Molteni. This includes all the intellectual property of ProNeura®. He added that the net proceeds from the recent public offering, the significant reduction in operating costs, and the ability to leverage Titan’s IPs positions the company to advance the ProNeura-based product candidate’s preclinical development line. This includes establishing a proof-of-concept in 1H 2021 with the kappa opioid agonist acquired from Jt Pharmaceuticals.