Press release
Eton Pharmaceuticals Announces Sale of Hospital Products
Eton sold its rights in Biorphen®, Rezipres®, and Cysteine Hydrochloride products for total payments of up to $50 millionGoing forward, Eton’s commercial
About this update from Eton Pharmaceuticals, Inc.
[{"type":"text","content":"Eton sold its rights in Biorphen®, Rezipres®, and Cysteine Hydrochloride products for total payments of up to $50 millionGoing forward, Eton’s commercial portfolio will exclusively focus on products that treat rare diseasesEton’s royalty portfolio is now eligible to receive up to $70 million in future milestone payments from six different products, plus royalties on sales from four products DEER PARK, Ill., June 24, 2022 (GLOBE NEWSWIRE) -- Eton Pharmaceuticals, Inc (Nasdaq: ETON), an innovative pharmaceutical company focused on developing and commercializing treatments for rare diseases, today announced that it has sold its hospital products to Dr. Reddy’s Laboratories SA, a subsidiary of Dr. Reddy’s Laboratories, Ltd. (collectively, “Dr Reddy’s”) (NYSE: RDY) for total payments of up to $50 million. “The sale of our hospital products allows us to focus our resources on our core rare disease business, which is rapidly growing, and also provides an attractive opportunity to monetize the value we have created with our hospital products. The proceeds from the transaction put us in an even stronger financial position and provide significant capital to further invest in additional rare disease products,” said Sean Brynjelsen, CEO of Eton Pharmaceuticals. Transaction Terms Under terms of the transaction, Dr Reddy’s purchased the Biorphen®, Rezipres®, and Cysteine Hydrochloride products. Dr Reddy’s will immediately take ownership of Eton’s rights and interests in the products. Eton will continue to sell its existing Biorphen ampule inventory until the end of 2022. Eton received approximately $5 million at closing, and will receive additional payments of up to $45 million, based on the achievement of certain event-based and sales-based milestones: $20.0 million upon launch of Cysteine hydrochloride injection, assuming a successful court outcome relating to an ongoing litigation and commercial launch within six years from the transaction closing.1$5.0 million if no competing Cysteine injection products are marketed other than the innovator product (Elcys®) on the six-month anniversary of Dr. Reddy’s Cysteine product launch.1$1.0 million upon FDA approval of Biorphen vial, provided it occurs before January 1, 2023. If it occurs after January 1, 2023 but before March 1, 2023, Eton receives $0.5 million.$2.5 million upon FDA approval of Bio...