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## Management’s Discussion and Analysis of Financial Condition and Results of Operations 

The following discussion should be read in conjunction with the Consolidated Financial Statements and Notes. 

The following discussion contains certain forward-looking statements, within the meaning of the “safe harbor” provi- sions of the Private Securities Reform Act of 1995, the attain- ment of which involves various risks and uncertainties. Forward-looking statements may be identified by the use of forward-looking terminology such as “may,”“will,”“expect,” “believe,”“estimate,”“plan,”“anticipate,”“continue,” or similar terms, variations of those terms or the negative of those terms. Our actual results may differ materially from those described in these forward-looking statements due to, among other factors, the results of ongoing research and development activities and pre-clinical testing, the results of clinical trials and the availability of additional financing through corporate partnering arrangements or otherwise. 

Spheramine GLYPH<H23006> , CeaVac GLYPH<H23006> , TriAb GLYPH<H23006> , TriGem GLYPH<H23008> , Pivanex GLYPH<H23006> , Probuphine GLYPH<H23008> and CCM GLYPH<H23008> are trademarks of Titan Pharmaceuticals, Inc. 

The following table provides a summary status of our products in development: 

## Overview 

We are a biopharmaceutical company developing proprietary therapeutics for the treatment of central nervous system dis- orders, cancer, and other serious and life threatening diseases. Our product development programs focus on large pharma- ceutical markets with significant unmet medical needs and commercial potential. 

We currently have nine products in development, seven of which are in clinical development, with two products in expanded human trials for safety and efficacy, known as Phase III clinical trials. We have five products in trials for preliminary safety and dosing and in trials for initial safety and efficacy, known as Phase I and Phase II clinical trials, respectively. In addition to these programs, we have two products in pre- clinical development. 

We are independently developing our product candidates and also utilizing strategic partnerships, including collaborations with Novartis Pharma AG (Novartis) and Schering AG (Schering), as well as collaborations with several government-sponsored clinical cooperative groups. These collaborations help fund product development and enable us to retain significant eco- nomic interest in our products. 

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Our products are at various stages of development and may not be successfully developed or commercialized. We do not currently have any products being sold on the commercial market. Our proposed products will require significant further capital expenditures, development, testing, and regulatory clearances prior to commercialization. We may experience unanticipated problems relating to product development and cannot predict whether we will successfully develop and commercialize any products. An estimation of product completion dates and completion costs can vary significantly for each product and are difficult to predict. Various statutes and regulations also influence our product development progress and the success of obtaining approval is highly uncertain. 

