Osmotica Pharma surges on deal to sell legacy business

RVL Pharmaceuticals

25/06/2021 12:51

** Shares of biopharma co  OSMT.O  rise 40.8% to $4.00
premarket
    ** Co enters into agreement with Alora Pharmaceuticals LLC,
under which the latter will acquire Osmotica's portfolio of
legacy products and its Marietta, Georgia manufacturing facility
 urn:newsml:reuters.com:*:nGNX2DdSkh
    ** Under terms of agreement, Osmotica will receive $110 mln
upfront cash payment, with potential to receive up to $60 mln in
milestone payments
    ** OSMT said proceeds will be used to retire substantial
portion of outstanding indebtedness and increase
commercialization efforts of its flagship product, UPNEEQ 
    ** Transaction is expected to close in Q3 
    ** Osmotica will retain RVL Pharmaceuticals business and its
experimental drug in development to treat Multiple Sclerosis
spasticity
    ** OSMT stock down ~31% this year, as of last close

 (Reporting by Mrinalika Roy in Bengaluru)
 ((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 806749 8325;))