This past Friday the Osmotica Pharmaceuticals (NASDAQ:OSMT) stock made a big move after the company announced a divestiture to the tune of as much as $170 million.
The company announced that it reached an agreement with Alora Pharmaceuticals Inc for the sale of its legacy and the manufacturing plant in Georgia in a deal worth as much as $170 million. The news came as a major boost for the Osmotica stock and it soared by as much as 33% as investors jumped on the stock in a big way.
It has been revealed that the company is going to get $110 million in the form of cash straightaway. On the other hand, Osmotica stands to receive $60 million more if certain milestones are met. The company also pointed out that its RVL Pharmaceuticals business is going to be retained.
On the other hand, the aarbaclofen extended-release tablet product, which is meant for the treatment of multiple sclerorsis spasticity, is going to remain in development. It is a major development for the company and raises a significant amount of cash for its assets. The deal is expected to be closed at some point in the third quarter of this wear by Osmotica.
Market Reaction:
On Friday, OSMT stock went up 33% to $3.78 with more than 58.78 million shares, compared to its average volume of 1.17 million shares. The stock has moved within a range of $3.6500 – 4.8500 after opening the trade at $4.80. Over the past 52-week, the stock has been trading within a range of $2.7400 – 9.6700.
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