Osmotica Stock Surges On $170M Divestiture Deal With Alora Pharmaceuticals

Osmotica Pharmaceuticals plc OSMT has agreed to sell its portfolio of legacy products and Georgia manufacturing facility, for up to $170 million, 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.
Osmotica will retain the RVL Pharmaceuticals business focused on ophthalmology and aesthetics, led by its flagship product, Upneeq.
It will also keep aarbaclofen extended-release tablets in development to treat Multiple Sclerosis spasticity.
"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 transaction is expected to close in the third quarter of 2021.
Barclays Bank PLC and Jefferies LLC are acting as financial advisors. TAP Advisors is acting as exclusive financial advisor to Alora on the transaction.
Osmotica Management will host a conference call today at 8:30 a.m. ET.
Price Action: OSMT shares are up 71.1% at $4.86 during the premarket session on the last check Friday.