By Lisa Seachrist

Washington Editor

Titan Pharmaceuticals Inc.'s schizophrenia drug, Zomaril (iloperidone), has proven positive in the first of a series of Phase III studies being conducted by collaborator Novartis AG.

The study of approximately 600 patients treated at 40 sites in the U.S. showed Zomaril reduced the symptoms of schizophrenia and schizoaffective disorder with fewer side effects than current therapeutic options. The preliminary analysis of the results showed statistical significance, the company said.

"We are very pleased with the progress Novartis is making with Zomaril," said Louis Bucalo, South San Francisco-based Titan's CEO. "We are very encouraged that the initial Phase III study confirms what was seen in Phase II trials of the drug."

Novartis' Phase III program for Zomaril will include several efficacy studies and several long-term safety studies. Five of those studies already are under way. The entire program will include approximately 3,000 patients at 100 centers in 20 countries.

Schizophrenics overproduce dopamine in one area of the brain and underproduce it in another part. Patients suffering from the disease have "positive" symptoms that include delusions and hallucinations, as well as "negative" symptoms such as apathy and social withdrawal.

Current therapies control the positive symptoms, but fail to address the negative symptoms. In addition, many of these medicines cause uncontrolled muscle movements. Those "extrapyramidal" movements are often the main reason schizophrenics stop taking their medicines.

Iloperidone, a small-molecule drug, is one of a new generation of anti-psychotic agents that block the brain chemicals serotonin and dopamine. Iloperidone, however, blocks serotonin strongly and dopamine weakly - the exact opposite of earlier anti-psychotic medications. By weakly blocking dopamine, Iloperidone can address both positive and negative symptoms while avoiding the motor-function side effects.

Titan's stock (AMEX:TTP) closed Wednesday at $15.25, up 87.5 cents.