With the heavyweight Novartis (NYSE:NVS) set to commercially launch Fanapt early next year, the schizophrenia drug could quickly gain a foothold in a huge market ($14 billion) that has the lowest selling product raking in over $1 billion in annual sales.

{tiny;TTNP;3}As both long and short term followers of Titan Pharmaceuticals well know, Titan will receive royalties of 8% on Fanapt sales up to $200 million and 10% on all sales thereafter; royalty rates that barely justify the current market cap of the company alone when considering the fact that Novartis, with their push and influence, could make Fanapt an instance force in the schizophrenia market.

And then there is Probuphine. For those new to TTNP, Titan recently received a grant from the NIH to fund a Phase III trial for Probuphine to confirm the drug's effectiveness in treating Opioid addiction.

Probuphine is also being tested in Phase II trials for the treatment of chronic pain.

While I have no doubt that TTNP continues to hold significant potential for the future, I sold a few shares into last week's spike to $2.30 in order to free up some cash and move it around a bit.

With Fanapt ready to launch in a couple of months, the next events that could/should move the TTNP stock price are:

In the event that Titan is not acquired, then a stock sale could become a possibility in order for the company to raise funds. If that were to be the case then I would expect it soon after the recent runup.

However, with a Fanapt revenue stream imminent and Probuphine looking more promising with every update, the days of Titan existing solely as a speculative company are dwindling.

Much of this is a rehash for long term readers, and while Titan still has some nice potential moving forward, it's not a bad time for those still holding sub-five cent shares to realize some profits, spread it around, buy wifey a new pair of shoes and take a vacation.

Of course, this is all just my opinion. Do your own DD.

Disclosure: Vinny Cassano is Long TTNP.

(GSK) Anti-Smoking Vaccine Offered by GlaxoSmithKline

GlaxoSmithKline (GSK) and Nabi Biopharmaceuticals (NABI) signed a licensing agreement for a nicotine conjugate vaccine (NicVAX) as well as for the development of a second generation nicotine vaccine. NicVAX is an investigational vaccine for the treatment of nicotine addiction and the prevention of smoking relapse. Earlier in October, the vaccine received a $10 million grant from the National Institute on Drug Abuse.

As per the agreement, Nabi will get an upfront payment of $40 million and is eligible to receive more than $500 million (together with upfront payment) as option fees and milestones for the vaccine, NicVAX, and follow-on nicotine vaccines. Nabi has the potential to receive double-digit royalties from sales if the product is commercialized. GlaxoSmithKline will have an option to exclusively in-license NicVAX on a worldwide basis and a license to develop follow-on next-generation nicotine vaccines using Nabi's intellectual property together with GSK's own technology.

NicVAX is currently being studied in the first of two phase III clinical trials with results expected at the end of 2010. While Nabi will be responsible for the development of this vaccine, GlaxoSmithKline on exercising its option will take responsibility for further development and commercialization of NicVAX.

Company estimates put the worldwide number of smokers at about 1.2 billion and smoking causes approximately 5.4 million deaths per year. In view of the huge increase in the number of smokers, Datamonitor expects the global market for smoking cessation to reach $4.6 billion by 2016 and vaccines could account for $2 billion in sales.

Currently available smoking cessation therapies have relapse rates which can be as high as 90% in the first year after a smoker quits. Although the vaccine holds immense potential, we however remain concerned about its successful development. In October, an anti-smoking vaccine developed by Cytos Biotechnology and Novartis (NVS) missed its main goal in a mid-stage study.

For Immediate Release

Chicago, IL – November 16, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: GlaxoSmithKline plc (GSK), Sanofi-Aventis (SNY), Novartis (NVS), Baxter International (BAX) and AstraZeneca (AZN).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday’s Analyst Blog:

Glaxo H1N1 Vaccine Approved

GlaxoSmithKline plc (GSK) recently received approval from the U.S. Food and Drug Administration (FDA) for its unadjuvanted influenza A (H1N1) pandemic vaccine. The FDA approved the supplemental biologics license application (sBLA), which was filed as a strain change supplement to Glaxo’s FluLaval seasonal flu vaccine. This means that Glaxo can now market its swine flu vaccine for use in adults to prevent influenza.

The company has already received an order for 7.6 million doses of its swine flu vaccine from the United States Department of Health and Human Services. This order is a part of the US Government’s intention to secure about 250 million doses to help fight the swine flu pandemic.

The current outbreak of swine flu pandemic can prove to be a big opportunity for vaccine manufacturers. In addition to Glaxo, other major players in this field include Sanofi-Aventis (SNY), Novartis (NVS), Baxter International (BAX) and AstraZeneca (AZN).

In fact, several companies including Sanofi Pasteur, the vaccine division of Sanofi-Aventis, Novartis Vaccines and Diagnostics Limited, the vaccine and diagnostics arm of Novartis, MedImmune LLC, a subsidiary of AstraZeneca and CSL Limited of Australia, have already received approval from the FDA for their swine flu vaccines.

Glaxo intends to start shipping its vaccine in December and expects to provide all the doses by year-end. We expect the company’s vaccine segment to post strong revenues in the fourth quarter of 2009. In addition to strong influenza product sales, the company has made significant progress in expanding its vaccine product portfolio. The approval of cervical cancer vaccine Cervarix in the US and Japan, H1N1 vaccine Pandemrix in Europe, and the H1N1 vaccine in the US should all help drive vaccine segment revenue.

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