Eton Pharma Shares Tick Higher After Offloading Hospital Products

Eton Pharmaceuticals Inc ETON has sold its hospital products to Dr. Reddy's Laboratories SA, a subsidiary of Dr. Reddy's Laboratories Ltd RDY, for $50 million.
"The sale of our hospital products allows us to focus our resources on our core rare disease business, which is rapidly growing, and also provides an attractive opportunity to monetize the value we have created with our hospital products," said CEO Sean Brynjelsen, CEO of Eton.
Dr. Reddy's purchased the Biorphen, Rezipres, and Cysteine Hydrochloride products. Eton will continue to sell its existing Biorphen ampule inventory until the end of 2022.
Eton received approximately $5 million at closing and will receive additional milestone-based payments of up to $45 million.
Following the transaction, Eton's commercial activities will solely focus on rare disease products with a portfolio of four product candidates, two of which are currently FDA-approved commercial products, including Alkindi Sprinkle and Carglumic Acid tablets.
Eton's Dehydrated alcohol injection for methanol poisoning has been submitted to the FDA and has received orphan drug designation.
ZENEO hydrocortisone autoinjector for the potential treatment of adrenal crisis is expected to be submitted to the FDA in 2023.
Eton's royalty portfolio is now eligible to receive up to $70 million in future milestone payments from six different products, plus royalties on sales from four products.
Price Action: ETON shares are up 6.53% at $3.10 on the last check Friday.

Market News and Data brought to you by Benzinga APIs

Comments

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga