Osmotica Pharmaceuticals plc Announces Conclusion of Strategic Process with Agreement for the Sale of Legacy Business to Alora Pharmaceuticals, LLC
Osmotica will receive a $110 million upfront cash payment, with the potential to receive up to $60 million in additional milestone payments
Alora will acquire manufacturing
operations in Marietta, Georgia in addition to legacy products
Osmotica will retain the RVL Pharmaceuticals business focused on ophthalmology and aesthetics, led by its flagship
product, UPNEEQ
Osmotica will also retain arbaclofen extended-release (“ER”) tablets in development to treat Multiple Sclerosis (“MS”)
spasticity
Conference call to be held at 8:30 a.m. ET
BRIDGEWATER, N.J., June 25, 2021 (GLOBE NEWSWIRE) -- Osmotica Pharmaceuticals, plc (Nasdaq: OSMT) (“Osmotica” or the “Company”), a fully integrated biopharmaceutical company, today announced that it has entered into a definitive Purchase and Sale Agreement with Alora Pharmaceuticals, LLC (“Alora”) pursuant to which Alora will acquire Osmotica’s portfolio of legacy products and its Marietta, Georgia manufacturing facility, for up to $170 million.
“Today’s announcement is a meaningful step in the transformation of our business and aligns with our strategy of building a portfolio of growth assets in ocular aesthetics,” said Brian Markison, CEO of Osmotica Pharmaceuticals. “The legacy business has been an important part of our evolution, and we would like to recognize the excellent performance of our employees as they have remained focused throughout this process. The proceeds generated by the sale will be used to retire a substantial portion of our outstanding indebtedness and position us to accelerate the commercialization efforts of our flagship product, UPNEEQ. Since the introduction of UPNEEQ, our confidence in the brand has continued to grow, and we believe that this is the right time to further focus on this tremendous asset.
“Alora Pharmaceuticals is an excellent home for our legacy business given its diverse portfolio and dedication to high-quality branded and generic products,” added Markison.
Lesen Sie auch
“Alora Pharmaceuticals is excited to welcome the Osmotica team to our growing company. This acquisition will immediately bolster our platform of generic and branded product lines and will contribute to the long-term growth of our contract research and development and manufacturing capabilities,” said Art Deas, CEO of Alora.