Osmotica Pharmaceuticals Inc. (NASDAQ: OSMT) stock gained by 33.1% at last close while the OSMT stock price plunged by 7.94% in the after-hours trading. Osmotica Pharmaceuticals is a fully integrated biopharmaceutical business focused on the research and marketing of specialized medicines for underserved patient groups in underdeveloped markets.
Osmotica Pharmaceuticals stated that it has signed a final Purchase and Sale Agreement with Alora Pharmaceuticals, under which Alora would buy Osmotica’s heritage product portfolio and production facilities in Marietta, Georgia, for up to $170 million. The deal has been authorized by the boards of directors of both Osmotica and Alora and is scheduled to conclude in the third quarter of 2021.
Osmotica’s financial advisors are Barclays Bank PLC and Jefferies LLC, while its legal advisor is Ropes & Gray LLP. TAP Advisors is serving as Alora’s exclusive financial advisor, while Nelson Mullins Riley & Scarborough LLP is serving as its legal advisor.
Brian Markison, CEO of Osmotica Pharmaceuticals stated,
This news marks a significant step forward in OSMT’s transition, and it is consistent with their goal of creating a range of ocular aesthetics growth assets. The legacy firm has been an essential part of their growth, and we’d want to acknowledge the workers’ outstanding performance in remaining focused during this process. The profits from the transaction will be utilized to pay off a large amount of the existing debt and position them to speed up the commercialization of their flagship product, UPNEEQ.
Since the launch of UPNEEQ, their faith in the brand has grown, and they feel now is the appropriate moment to put even more emphasis on this valuable asset. Given its wide portfolio and commitment to high-quality branded and generic pharmaceuticals, Alora Pharmaceuticals is a good fit for their legacy company.
Art Deas, CEO of Alora commented,
Alora Pharmaceuticals is pleased to introduce the Osmotica team to their rapidly expanding organization. This purchase will instantly strengthen their generic and branded product lines, as well as aid to their contract research & design and manufacturing capabilities’ long-term growth.