Therapeutics company Titan Pharmaceuticals Inc (NASDAQ: TTNP) reported on Wednesday the launch of an agreement for the acquisition of its intellectual property related to Probuphine in Europe, as well as certain countries of the Commonwealth of Independent States, the Middle East and North Africa.

The company has signed the definitive asset purchase, supply and support agreement with L. Molteni & C. dei F.lli Alitti Società di Esercizio SpA.

Molteni will reportedly acquire the European intellectual property related to Probuphine, including the Marketing Authorisation Application (MAA) under European Medicines Agency (EMA) review, exclusive right to commercialise the Probuphine product in Europe, as well as certain countries of the Commonwealth of Independent States, the Middle East and North Africa (the Molteni Territory).

Under the terms of the agreement, Titan received an initial payment of EUR2.0m for the purchased assets, will receive potential additional payments totaling up to EUR4.5m upon the achievement of certain regulatory and product label milestones as well as is entitled to receive earn-out payments for up to 15 years on net sales of Probuphine in the Molteni Territory ranging in percentage from the low-teens to the mid-twenties.

In conjunction with the agreement, Molteni has purchased USD2.4m of the outstanding USD4.0m principal balance owed under Titan's July 2017 loan agreement with Horizon Technology Finance Corporation.

Pursuant to this transaction, Titan issued to Molteni and Horizon warrants to purchase an aggregate of 580,000 shares of Titan's common stock at a per share exercise price of USD1.20.