<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q



/X/    Quarterly  Report  Pursuant to Section 13 or 15(d) of the  Securities
       Exchange Act of 1934 for the Period Ended June 30, 1999.

                                   or

/_/    Transition Report Pursuant to Section 13 or 15(d) of the Securities
       Exchange Act of 1934 for the Transition Period From _____________ to
       __________________.

Commission file number 0-27436


                           TITAN PHARMACEUTICALS, INC.
             (Exact name of registrant as specified in its charter)

                  DELAWARE                                      94-3171940
                  --------                                      ----------
       (State or Other Jurisdiction of                       (I.R.S. Employer
       Incorporation or Organization)                       Identification No.)

    400 OYSTER POINT BLVD., SUITE 505, SOUTH SAN FRANCISCO, CALIFORNIA 94080
           (Address of Principal Executive Offices including zip code)

                                 (650) 244-4990
              (Registrant's Telephone Number, Including Area Code)


Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12
months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days. Yes X No


There were 15,396,518 shares of the Registrant's Common Stock issued and
outstanding on July 23, 1999.



<PAGE>



                           TITAN PHARMACEUTICALS, INC.
                               INDEX TO FORM 10-Q
<TABLE>
<CAPTION>

PART I.    FINANCIAL INFORMATION                                            PAGE
<S>        <C>                                                              <C>

           Item 1.  Condensed Financial Statements (unaudited)

           Condensed Consolidated Balance Sheets
              June 30, 1999 and December 31, 1998                            2

           Condensed Consolidated Statements of Operations Three
              months and six months ended June 30, 1999 and
              1998 and period from commencement of
              operations (July 25, 1991) to June 30, 1999                    3

           Condensed Consolidated Statements of Cash Flows Six
              months ended June 30, 1999 and 1998 and period
              from commencement of operations
              (July 25, 1991) to June 30, 1999                               4

           Notes to Condensed Consolidated Financial
              Statements - June 30, 1999                                     6

           Item 2.  Management's Discussion and Analysis of Financial
              Condition and Results of Operations                            7


PART II.   OTHER INFORMATION

           Item 6.  Exhibits and Reports on Form 8-K                         9

SIGNATURES                                                                  10
</TABLE>


<PAGE>



PART I.  FINANCIAL INFORMATION

                           TITAN PHARMACEUTICALS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                      CONDENSED CONSOLIDATED BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                     JUNE 30,            DECEMBER 31,
                                                                      1999                  1998
                                                                   (UNAUDITED)            (NOTE A)
                                                                 ---------------       --------------
<S>                                                              <C>                   <C>
Assets
Current Assets
   Cash and cash equivalents                                       $  11,813,320       $  11,654,896
   Prepaid expenses and other current assets                             151,123             139,958
                                                                   -------------       -------------
       Total current assets                                           11,964,443          11,794,854
Furniture and equipment, net                                             416,199             416,956
Other assets                                                              15,783              15,783
                                                                   -------------       -------------
                                                                   $  12,396,425       $  12,227,593
                                                                   =============       =============

Liabilities and Stockholders' Equity
Current Liabilities
  Accounts payable                                                 $    827,571        $     410,235
  Accrued clinical trials expense                                       280,308              653,218
  Other accrued liabilities                                             525,445              516,770
                                                                  -------------         ------------
      Total current liabilities                                       1,633,324            1,580,223

Commitments
Minority interest - Series B preferred stock of Ingenex, Inc.         1,241,032            1,241,032
Stockholders' Equity
  Preferred stock, at amounts paid in                                 5,000,000            5,000,000
  Common stock, at amounts paid in                                   58,247,445           52,291,369
  Additional paid-in capital                                          6,524,247            6,524,204
  Deferred compensation                                                (200,700)            (286,580)
  Deficit accumulated during the development stage                  (60,048,923)         (54,122,655)
                                                                 --------------         ------------
      Total stockholders' equity                                      9,522,069            9,406,338
                                                                 --------------         ------------
                                                                 $   12,396,425         $ 12,227,593
                                                                 ==============         ============

</TABLE>

     Note A:  The balance sheet at December 31, 1998 has been derived from the
     audited financial statements at that date but does not include all of the
     information and footnotes required by generally accepted accounting
     principles for complete financial statements.


                   See Notes to Condensed Consolidated Financial Statements


                                       2
<PAGE>



                           TITAN PHARMACEUTICALS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                                                                                   PERIOD FROM
                                                         THREE MONTHS ENDED               SIX MONTHS ENDED        COMMENCEMENT
                                                              JUNE 30,                        JUNE 30,            OF OPERATIONS
                                                   ----------------------------    --------------------------   (JULY 25, 1991) TO
                                                      1999             1998            1999          1998        JUNE 30, 1999
                                                   ------------    ------------    ------------   -----------    -----------------
<S>                                                <C>             <C>             <C>            <C>            <C>
License and grant revenue                          $    -          $     -         $    46,660    $      -       $  17,944,941

Operating expenses:
  Research and development                          2,724,556        1,465,540       4,809,529      3,151,780       49,513,208
  Acquired in-process research and development          -                -             135,785           -          10,321,785
  General and administrative                          528,657          973,909       1,316,111      2,003,529       23,365,934
                                                   -----------     ------------    ------------   ------------   ----------------
   Total operating expenses                         3,253,213        2,439,449       6,261,425      5,155,309       83,200,927
                                                   -----------     ------------    ------------   ------------   ----------------
   Loss from operations                            (3,253,213)      (2,439,449)     (6,214,765)    (5,155,309)     (65,255,986)

Other income (expense):
  Equity in loss of Ansan Pharmaceuticals, Inc.         -                -                 -             -           (2,046,939)
  Gain on sale of technology                            -                -                 -             -           8,361,220
  Interest income                                     150,132          225,074         301,594        488,893        2,986,336
  Interest expense                                      -                -                 -              (87)      (4,389,902)
  Other (expense) income                               (3,502)         (13,657)        (13,097)        41,969          251,434
                                                   -----------     ------------    ------------    ------------    ---------------
      Other income, net                               146,630          211,417         288,497        530,775        5,162,149
                                                   -----------     ------------    ------------    ------------    ---------------
Loss before minority interest                      (3,106,583)      (2,228,032)     (5,926,268)    (4,624,534)     (60,093,837)

Minority interest in losses of subsidiaries              -                -                 -            -              44,914
                                                   ----------      -----------     ------------    ------------    ---------------

Net loss                                          $(3,106,583)     $(2,228,032)    $(5,926,268    $(4,624,534)    $(60,048,923)

Deemed dividend upon conversion of
  preferred stock                                       -               -                 -              -          (5,431,871)
                                                   ----------      -----------     ------------    ------------    ---------------

Net loss attributable to common stockholders      $(3,106,583)     $(2,228,032)    $(5,926,268)   $(4,624,534)    $(65,480,794)
                                                  ============     ============     ============   ============    ===============

Basic and diluted net loss per common share       $     (0.20)     $     (0.17)     $    (0.39)   $     (0.35)
                                                  ============     ============     ============   ============

Shares used in computing basic and
  diluted net loss per share                       15,384,952       13,108,230      15,035,823     13,093,516
                                                  ============     ============     ============  =============

</TABLE>


             See Notes to Condensed Consolidated Financial Statements.


                                       3
<PAGE>



                           TITAN PHARMACEUTICALS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)


<TABLE><CAPTION>
                                                                                                          PERIOD
                                                                                                       COMMENCEMENT
                                                              SIX MONTHS ENDED JUNE 30,                OF OPERATIONS
                                                            -------------     ------------          (JULY 25, 1991) TO
                                                                1999               1998               JUNE 30, 1999
                                                            -------------     -------------          -----------------
<S>                                                         <C>               <C>                    <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss                                                    $ (5,926,268)     $ (4,624,534)          $  (60,048,923)
Adjustments to reconcile net loss cash used
 in operating activities:
    Depreciation and amortization expense                        177,784           145,054                1,920,088
    Issuance of common stock to acquire technology                   -               -                    5,500,000
    Payment of guaranteed security value                             -          (3,044,409)              (3,044,409)
    Accretion of discount on indebtedness                            -               -                    2,290,910
    Equity in loss of Ansan Pharmaceuticals, Inc.                    -               -                    2,046,940
    Other                                                            -              14,105                 (239,336)
Issuance of common stock to acquire
 minority interest of Theracell, Inc.                            135,785             -                      821,785
Changes in operating assets and liabilities:
    Receivables                                                      -             371,793                      -
    Prepaid expenses and other assets                            (11,165)         (101,621)                (171,871)
    Accounts payable                                             417,336          (172,647)               1,151,761
    Other accrued liabilities                                   (364,235)         (355,185)               1,206,169
                                                             -------------    -------------           ----------------
Net cash used in operating activities                         (5,570,763)       (7,767,444)             (48,566,886)
                                                             -------------    -------------           ----------------


CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of furniture and equipment, net                        (91,147)           (48,189)              (1,540,469)
Purchase of short-term investments                                  -                -                  (59,782,493)
Proceeds from sale of short-term investments                        -                -                   59,782,493
Effect of deconsolidation of
 Ansan Pharmaceuticals, Inc.                                        -                -                     (135,934)
                                                             -------------    -------------            ---------------
Net cash used in investing activities                           (91,147)           (48,189)              (1,676,403)
                                                             -------------    -------------            ---------------
</TABLE>

                    See Notes to Condensed Consolidated Financial Statements


                                              4
<PAGE>

                           TITAN PHARMACEUTICALS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                                          PERIOD
                                                                                                       COMMENCEMENT
                                                              SIX MONTHS ENDED JUNE 30,                OF OPERATIONS
                                                            -------------     ------------          (JULY 25, 1991) TO
                                                                1999               1998               JUNE 30, 1999
                                                            -------------     -------------          -----------------
<S>                                                         <C>               <C>                    <C>
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock                                    $  5,820,291     $    215,832            $    36,062,047
Deferred financing costs                                           -                 -                      (713,899)
Issuance of preferred stock                                        -                 -                    22,601,443
Proceeds from notes and advances payable                           -                 -                     2,681,500
Repayment of notes payable                                         -                 -                    (1,441,500)
Proceeds from Ansan bridge financing                               -                 -                     1,425,000
Proceeds from Titan Pharmaceutical, Inc. and
  Ingenex, Inc. bridge financing                                   -                 -                     5,250,000
Repayment of Titan Pharmaceutical, Inc. and
  Ingenex, Inc. bridge financing                                   -                 -                    (5,250,000)
Proceeds from capital lease bridge financing                       -                 -                       658,206
Payments of principle under capital lease obligation               -                 -                      (633,766)
Proceeds from Ingenex, Inc. technology financing                   -                 -                     2,000,000
Principal payments on Ingenex, Inc. technology financing           -                 -                    (2,000,000)
Increase in minority interest                                      -                 -                     1,241,032
Issuance of common stock with subsidiaries                            43             -                       176,546
                                                            -------------    -------------           -----------------
Net cash provided by financing activities                      5,820,334          215,832                 62,056,609
                                                            -------------    -------------           -----------------

Net increase/(decrease) in cash and cash equivalents             158,424       (7,599,801)                11,813,320
Cash and cash equivalents, beginning of period                11,654,896       24,386,872                        -
Cash and cash equivalents, end of period                    -------------    -------------           -----------------
                                                            $ 11,813,320     $ 16,787,071            $    11,813,320
                                                            =============    =============           =================

SUPPLEMENTAL CASH FLOW DISCLOSURE:
Interest paid                                               $      -         $         87            $     1,393,524
Conversion of notes payable to related parties and
  accrued interest into Series A preferred stock            $      -         $       -               $    (1,306,329)
                                                            =============    =============           =================
 Acquisition of furniture and equipment pursuant
  to capital lease                                          $      -         $       -               $       595,236
                                                            =============    =============           =================

Cashless exercise of warrants                               $      -         $       -               $       871,892
                                                            =============    =============           =================
</TABLE>

                See Notes to Condensed Consolidated Financial Statements


                                        5
<PAGE>




                           TITAN PHARMACEUTICALS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


1.   ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
THE COMPANY AND ITS DEVELOPMENT STAGE SUBSIDIARIES

     Titan Pharmaceuticals, Inc. (the "Company" or "Titan"), was incorporated in
February 1992 in the State of Delaware. Titan is a biopharmaceutical company
developing proprietary therapeutics for the treatment of central nervous system
disorders, cancer and other serious and life-threatening diseases. Titan
conducts a portion of its operations through two subsidiaries: Ingenex, Inc.
("Ingenex") and ProNeura, Inc. ("ProNeura"), collectively, (the "Operating
Companies"). In March 1999, a third Company subsidiary, Theracell, Inc.
("Theracell"), was merged with and into Titan. The Company and its Operating
Companies operate in one industry segment.

    INGENEX, INC.

    Ingenex is engaged in the development of gene-based therapeutics for the
treatment of cancer. At June 30, 1999, the Company owned 81% of Ingenex,
assuming the conversion of all preferred stock to common.

    PRONEURA, INC.

    ProNeura was incorporated in October 1995 to engage in the development of
cost effective, long term treatment solutions to neurologic and psychiatric
disorders through an implantable drug delivery system. At June 30, 1999, the
Company owned 79% of ProNeura.

    THERACELL MERGER

    On March 10, 1999, Theracell was merged with and into Titan. Pursuant to
the merger, the Company recorded an in-process research and development expense
of approximately $136,000, related to the acquisition of the shares held by the
minority shareholders.

BASIS OF PRESENTATION

     The accompanying unaudited condensed consolidated financial statements
include the accounts of Titan and its majority owned subsidiaries after
elimination of all significant intercompany accounts and transactions. These
financial statements have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do
not include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Operating results for the
six-month period ended June 30, 1999 are not necessarily indicative of the
results that may be expected for the year ended December 31, 1999. These
financials should be read in conjunction with the audited consolidated financial
statements and footnotes thereto included in the Titan Pharmaceuticals, Inc.
annual report on Form 10-K for the year ended December 31, 1998.

2.   NET LOSS PER SHARE

     The Company calculates basic and diluted net loss per common share using
the weighted average shares outstanding for the period. Had the Company been
in a net income position, diluted earnings per share as of June 30, 1999 and
1998 would have included an additional 12,030,133 and 11,545,142 shares,
respectively, related to the Company's outstanding options, warrants and
convertible preferred stock (prior to the application of treasury stock
method.)

3.   STOCKHOLDERS' EQUITY

     In January 1999, the Company completed a private placement of 2,254,545
shares of its Common Stock for net proceeds of approximately $5,798,000, after
deducting fees and commissions and other expenses of the offering. The Company's
comprehensive loss was the same as the Company's net loss for the reporting
periods.


                                       6
<PAGE>


ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          RESULTS OF OPERATIONS

     The following discussion contains certain forward-looking statements,
within the meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, the attainment 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," "anticipate," "continue" or similar terms, variations of those terms
or the negative of those terms. The Company's 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 preclinical testing, the results of clinical trials and the availability of
additional financing through corporate partnering arrangements or otherwise.

RESULTS OF OPERATIONS

     Since its inception, the Company's efforts have been principally devoted to
product and technology development, clinical research, raising capital, and
securing patent protection. At June 30, 1999, the Company had an accumulated
deficit of approximately $60,049,000, resulting from expenditures for research
and development and general and administrative activities.

     There were no revenues for the three months ended June 30, 1999. There was
approximately $47,000 in revenues from a U.S. government grant for the six
months ended June 30, 1999. There were no revenues for the three- and six-month
periods ended June 30, 1998.

     Research and development expenses for the second quarter of 1999 were
approximately $2,725,000 compared to $1,466,000 for the same quarter in 1998, an
increase of 86%. For the six months ended June 30, 1999, research and
development expenses were $4,945,000, including $136,000 of acquired in-process
research and development related to the acquisition of minority interest of
Theracell, compared to $3,152,000 for the same period in 1998, an increase of
57%. These planned increases are primarily due to the ongoing Phase II clinical
trials for CeaVac, TriAb and Pivanex, and accelerating patient enrollment
in the trial with CeaVac in colorectal cancer during second quarter of 1999.

     General and administrative expenses for the second quarter of 1999 were
approximately $529,000 compared to $974,000 for the same quarter in 1998, a
decrease of 46%. For the six months ended June 30, 1999, general and
administrative expenses were $1,316,000 compared to $2,004,000 for the same
period in 1998, a decrease of 34%. These decreases can be attributed to the
Company's planned consolidation of operations and ongoing efforts to contain
non-research operating costs.

     Other income, net of other expenses for the second quarter of 1999 was
approximately $147,000 compared to $211,000 for the same quarter in 1998, a
decrease of approximately $65,000. Other income for the second quarter of 1999
included interest income of approximately $150,000 compared to $225,000 for the
same quarter in 1998. For the six months ended June 30, 1999, interest income
was $302,000 compared to $489,000 for the same period in 1998.


IMPACT OF YEAR 2000

     GENERAL

     The "Year 2000 Issue" is the result of computer programs being written
using two digits rather than four to define the applicable year. Computer
programs or hardware that have date-sensitive software or embedded chips may
recognize a date using "00" as the year 1900 rather than the year 2000. This
could result in a system failure or miscalculations causing disruptions of
operations, including, among other things, a temporary inability to process
transactions, or engage in similar normal business activities.


                                       7
<PAGE>


     SYSTEM ASSESSMENT

     Titan is a relatively young company and most of its Information Technology
("IT") and Non-IT systems were Year 2000 compliant when purchased. The Company
believes, therefore, it will not be required to implement significant
modifications or replace significant portions of its software and hardware in
order to be Year 2000 compliant. The Company is, however, taking steps to ensure
that the Year 2000 Issue does not have a material impact on the operation of the
Company.

     Significant functions related to the Company's clinical trials are carried
out by contract research organizations ("CROs"). These functions include, but
are not limited to, clinical study monitoring, biostatistics, data management
and drug manufacturing. To the extent that the systems of CROs produce incorrect
information or cause incorrect interpretation of the information that they
produce, the Company is at risk for making invalid conclusions about the nature,
efficacy, or safety of its products or technologies which could lead to
abandoning potentially lucrative products or technologies or invalidly
continuing development and pursuing FDA approval of others. The Company is in
the process of contacting its significant suppliers and CROs and requesting that
they provide certificates of compliance with relation to this issue. At this
time the Company is not aware of any suppliers or CROs with a Year 2000 Issue
that would materially impact the Company's results of operations, liquidity, or
capital resources. However, the Company has no means of ensuring that its
suppliers or CROs will be Year 2000 ready. The inability of its suppliers or
CROs to complete their Year 2000 resolution process in a timely fashion could
materially impact the Company. The effect of non-compliance by other external
agents is not determinable.

     COSTS AND CONTINGENCIES

     To date, the Company has expended only internal costs to assess the Year
2000 Issue. Letters of Year 2000 compliance from internal software providers
tend to indicate that the Company will not be exposed to any material
expenditures for replacements of such systems, however there can be no assurance
of this. Also, it is not yet possible to ascertain if any expenditure will be
required to replace systems, subcontractors or the work performed by such
subcontractors. While vendor assurances and internal testing are useful in
assessing Year 2000 issues, neither can provide absolute assurance that no Year
2000 problems will or can occur. During 1999, the Company will continue to
refine its plans in an attempt to assure the Year 2000 Issue will not materially
adversely affect their business operations or financial condition.

LIQUIDITY AND CAPITAL RESOURCES

     The Company has funded its operations from inception primarily through
private and public sales of its securities, corporate partnerships and
government grants. During 1997, the Company received approximately $25,861,000
from license fees and the sale of a research technology.

     In January 1999, the Company completed a private placement of 2,254,545
shares of its Common Stock for net proceeds of approximately $5,798,000, after
deducting fees and commissions and other expenses of the offering.

     In November 1998, the Company agreed to guarantee certain potential
obligations of the Company's Chief Executive Officer, related to the Company.
The Company's Chief Executive Officer has pledged approximately 300,000 shares
of the Company's common stock, owned by the Chief Executive Officer, to secure
the guarantee by the Company. Under said guarantee, the Company may be obligated
to make a payment of up to $400,000.

     Titan has entered into various agreements with contract research
organizations, academic institutions, and other entities for the performance of
research and development activities and for the maintenance of licenses related
to those activities. The aggregate commitments the Company has under these
agreements, including


                                      8
<PAGE>
minimum license payments, for the next 12 months is approximately $3,172,000.
Certain of the licenses provide for the payment of royalties by the Company
on future product sales, if any. In addition, in order to maintain license
and other rights while products are under development, the Company must comply
with customary licensee obligations, including the payment of patent related
costs and meeting project-funding milestones.

     In May 1998, the Company negotiated a $5,000,000 bank line of credit. To
date the Company has not borrowed against this facility.

     The Company expects to continue to incur substantial additional operating
losses from costs related to continuation and expansion of product development,
clinical trials, and increased administrative and fund raising activities over
at least the next several years. To preserve operating capital, the Company has
chosen to strategically focus on development of its later stage products in
clinical development, and at least temporarily reduce or eliminate spending on
certain preclinical programs. While the Company has sufficient working capital
to sustain planned operations for a period greater than 12 months, the Company
may seek additional financing, depending on numerous factors including, but not
limited to, the progress of the Company's product development programs, the
results of clinical studies, technological advances, determinations as to the
commercial potential of the Company's products, and the status of competitive
products. In addition, certain expenditures will be dependent on the
establishment of collaborative relationships with other companies, the
availability of financing, and other factors. In any event, the Company
anticipates that it will require substantial additional financing in the future.
There can be no assurance as to the availability or terms of any required
additional financing, when and if needed.


                                     PART II


ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

                  (a)      Exhibits
                           27.1             Financial Data Schedule


                  (b)     Reports on Form 8-K
                          There were no reports on Form 8-K filed during the
                          quarter ended June 30, 1999.


                                       9
<PAGE>




                                   SIGNATURES


     In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.





                                   TITAN PHARMACEUTICALS, INC.

         August 16, 1999           By:     /s/Louis R. Bucalo
                                       ---------------------------------------
                                        Louis R. Bucalo, M.D.
                                        President and Chief Executive Officer

         August 16, 1999           By:     /s/Robert E. Farrell
                                       ---------------------------------------
                                        Robert E. Farrell
                                        Chief Financial Officer


                                      10