The US Senate has heard testimony from former Titan Pharmaceuticals chief executive Paul B. Adamas on Wednesday, a day after the company’s shares plunged to a fresh five-year low, in a hearing that focused on the company and its relationship with regulators.
In testimony to the Senate Judiciary Committee, Adamas admitted the company had failed to deliver on its sales promises in recent years and said he has been “concerned” about Titan’s financial performance for years.
He also told the committee that he believed Titan was in “financial peril” and warned of potential regulatory problems.
Adamas, who has been under investigation since 2012 for his role in a $50 billion accounting fraud, had not been in a position to act as Titan’s chief executive since August 2016, when he stepped down.
In an interview with Reuters, Adams acknowledged Titan was “in financial trouble” and that he had been concerned about the company for years, but said the company has “been working diligently” to fix problems.
He said the “fiscal cliff” and its impact on Titan had “hurt the bottom line,” but he said the financial health of the company was improving.
“Titan is doing better than any of the companies that I have been a part of over the past decade,” he said.
Adams said Titan’s annual revenue of $5.7 billion is “much higher” than the $2.5 billion it had in 2010 and 2020, the last years of Adamas’ tenure as Titan CEO.
Adama also said he had lost confidence in the company over a “few months” when he first became CEO, and that Titan had not acted on those concerns.
“The fiscal cliff, the uncertainty, and the market downturn have been very difficult,” Adamas said.
Titan, based in San Francisco, was founded in 1894 by a chemist and scientist named William Henry Adamas.
Its stock fell to $3.45 on Wednesday after the committee’s hearing.
The stock had lost more than half its value in recent weeks after Titan announced it was buying rival drugmaker Novartis for $4.4 billion in cash and stock.
Admas was also one of a group of former Titan executives who pleaded guilty to tax evasion charges in 2016.
He was sentenced to 12 months in prison and $10 million in fines in 2018.