Osmotica Pharmaceuticals PLC (NASDAQ:OSMT) is the biggest gainers in the pre-market session on Thursday after issued news.
Major Trigger:
Osmotica Pharmaceuticals plc Announces Conclusion of Strategic Process with Agreement for the Sale of Legacy Business to Alora Pharmaceuticals, LLC
Key Highlights:
- OSMT 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.
- The Boards of Directors of both Osmotica and Alora have approved the transaction, which is expected to close in the third quarter of 2021.
- Barclays Bank PLC and Jefferies LLC are acting as financial advisors, and Ropes & Gray LLP is acting as legal advisor to Osmotica. TAP Advisors is acting as exclusive financial advisor, and Nelson Mullins Riley & Scarborough LLP is acting as legal advisor to Alora on the transaction.
Key Quote:
“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.
Market Reaction
As of 7:36, OSMT stock soared 43.31% to $4.07. So far more than 645k shares have exchanged hands.
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