Titan Pharmaceuticals expects approximately $1.6M as royalty on first-quarter sales of Fanapt

Titan Pharmaceuticals, Inc. (Pink Sheets: TTNP) today confirmed that the company expects to receive a payment of approximately $1.6 million by May 15, 2010 as the royalty on the first quarter 2010 sales of Fanapt™ (iloperidone), a drug for the treatment of schizophrenia launched in the US by Novartis Pharma AG in January 2010.  

First quarter sales of Fanapt were reported to be $21 million, and under the terms of its sublicense agreement with Novartis, Titan is entitled to receive royalties on net sales of Fanapt equal to 8% on annual net sales up to $200 million, and 10% on annual net sales above $200 million. Titan incurs no ongoing expenses associated with this potential future income.