9. Subsequent Events

In October 2012, Series B Warrants to purchase 4,627,941 shares of common stock were exercised resulting in gross proceeds of approximately $3,934,000.

In October 2012, we were notified by Novartis Pharma AG (“Novartis”) that Novartis had decided to cease further development of the long-acting injectable, or depot, formulation of iloperidone. Novartis will continue to commercialize Fanapt ^®, the oral formulation of iloperidone, in the U.S. and under the terms of the Company’s Sublicense Agreement with Novartis dated November 20, 1997, Novartis is obligated to pay royalties to Titan on net sales of all formulations of iloperidone for the life of the applicable patents. As reported in November 2011, the Company sold substantially all of its remaining future royalties on the sales of Fanapt ^® to Deerfield, and accordingly the future royalty payments owed to the Company by Novartis will continue to be transmitted to Deerfield upon receipt from Novartis per the terms of the agreement with Deerfield. See Note 6 “Royalty Liabilities” for further discussion of the Company’s royalty liabilities.

In October 2012 we submitted a New Drug Application to the U.S. Food and Drug Administration for the investigational product Probuphine^® for the maintenance treatment of opioid dependence in adult patients.