VYNE Therapeutics Offloads Its Topical Minocycline Assets To Journey Medical In $450M+ Deal

Journey Medical Corporation DERM has acquired Molecule Stabilizing Technology (MST) franchise, including Amzeeq (minocycline) topical foam and Zilxi (minocycline) topical foam from VYNE Therapeutics Inc VYNE 

• The transaction includes cash payments of $25 million and potential milestones of up to $450 million. 
• Approved by the FDA nearly 50 years ago, minocycline is a well-established molecule that has been prescribed, in oral formulation, over 30 million times in the past decade.
• Amzeeq topical foam, 4%, is the first and only topical formulation of minocycline approved by the FDA for inflammatory lesions of non-nodular moderate to severe acne vulgaris in adults and children nine years and older. 
• Approved by the FDA in May 2020, Zilxi topical foam, 1.5%, is the first and only topical minocycline treatment for inflammatory lesions due to rosacea in adults. 
• Amzeeq and Zilx generated approximately $4 million in net sales in the U.S. in Q3 FY21.
• In conjunction, Journey Medical has expanded its credit agreement with East West Bank to $30.0 million.
• As of September 30, Journey Medical held $21.7 million as cash, cash equivalents, and restricted cash.
• The divestiture aligns with VYNE's strategic plan. The proceeds will be used to fund the development of its immuno-inflammatory pipeline.
• Price Action: DERM shares are down 6.49% at $5.04, and VYNE shares are up 15% at $1.15 during the premarket session on the last check Thursday.