Titan Pharma, Molteni amend asset, supply, support agreement
Titan Pharmaceuticals (NASDAQ:TTNP) has entered into an amendment of an earlier asset purchase, supply and support agreement with L. Molteni & C. dei F.lli Alitti Società di Esercizio S.p.A., which allowed Molteni to acquire the European intellectual property related to Probuphine.
Under the amendment, Molteni will make an immediate payment to Titan of €950,000, or about $1.1-million, and has committed to make a convertible loan to Titan of €550,000, or about $600,000, in mid-September subject to Titan's submission of a response to questions posed by the European Medicines Agency (EMA). The payment and loan would be in exchange for the elimination of a €2 million, or about $2.3-million, of regulatory milestones provided for in the purchase agreement, which would be payable potentially in 2019 at the earliest.
The convertible loan, if made, will convert automatically into shares of Titan common stock on issuance by the EMA of marketing approval for Probuphine.
"We are very pleased with this transaction and welcome the strong commitment that Molteni continues to have to Probuphine and Titan," Titan president and CEO, Sunil Bhonsle, said in a statement.
"It provides us with short-term non-dilutive capital while we continue working with Molteni to position Probuphine for commercial success both in the U.S. and in select international markets," he added.