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.
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.