Shares of Titan Pharmaceuticals, Inc. (NASDAQ: TTNP) recently surged following the news of approval of an implant designed to treat opioid dependence. The interesting thing is that the product doesn’t even belong to Titan. So, why are investors jostling for the stock?
First things first – Probuphine implant is the first implant to be approved by the FDA for treatment of opioid dependence. The product was developed by a company called Braeburn Pharmaceuticals. Now, the excitement over Probuphine is overflowing to Titan because Braeburn is its partner. Therefore, Braeburn’s win is also Titan’s win and that is true in the case of Braeburn implant.
How the implant works and Titan Pharmaceuticals, Inc. (NASDAQ: TTNP)’s role in it
First, Probuphine implant delivers buprenorphine into the body of the patient. It will sit in the body for six months and continuously deliver buprenorphine during that period. The delivery of buprenorphine into the patient’s system will be part of the comprehensive treatment to break opioid dependence. Other parts of the treatment program are counseling and psychosocial support.
To deliver buprenorphine as required, the Probuphine implant uses Titan Pharmaceuticals, Inc. (NASDAQ: TTNP)’s drug delivery system called ProNeura. As such, whenever Probuphine is needed, there will be a corresponding need for ProNeura and that explains the recent excitement in the stock following the approval of the implant.
Relief for opioid addicts
Titan Pharmaceuticals, Inc. (NASDAQ: TTNP) and Braeburn believe that the FDA approval of Probuphine implant comes as a reprieve for many opioid addicts. According to Braeburn’s CEO, Behshad Sheldon, 78 people in the U.S. die from opioids each day. That crisis demonstrates a need for a solution that would restore hope to families and the addicts.
For the developers of Probuphine, the approval paves the way for a potentially massive revenue opportunity. Investors appear to be betting that Titan Pharmaceuticals, Inc. (NASDAQ: TTNP) now stands a better chance to drive significant topline and bottom-line improvement because of the large addressable market in the opioids dependency treatment.