Titan Pharmaceuticals issued an after hours press release on Wednesday announcing that the company expects to receive a royalty payment totalling about $1.6 million for sales of Fanapt.
Earlier this week Novartis had reported that Fanapt sales for the first quarter totaled $21 million, an encouraging number that puts a first year sales total of $100 million well within reach, in my opinion, if pharmaceutical powerhouse Novartis can build on the momentum created by the quarter one numbers.
The market potential of Fanapt - and the possibility of a quick realization of that potential - should not be ignored, as the schizophrenia/antipsychotic market is estimated to be between $14 to $20 billion. The drug that brings in the least in that market, Pfizer's Geodon, still realizes over a billion dollars in sales per year.
For Titan, this revenue stream comes with no associated costs and will augment the recently awarded National Institutes of Health grant to fund the confirmatory Phase III trial for Probuphine.
Titan expects to receive the royalty payment by mid-May, according to Wednesday's press release.
The prospects for growth of the Fanapt revenue stream, and the future potential of Probuphine should have TTNP trading for above two bucks once again soon enough - especially if the company plans to make a move from the pinks.
Disclosure: Long TTNP.