Osmotica Pharmaceuticals Shares Gains 40%

Shares of Osmotica Pharmaceuticals plc (OSMT) surged nearly 40% on Friday morning after the biopharmaceutical company said it has agreed to sell its portfolio of legacy products and its Marietta, Georgia manufacturing facility to Alora Pharmaceuticals LLC for up to $170 million.

OSMT is currently trading at $3.9392, up $1.0992 or 38.70%, on the Nasdaq. The stock has traded between $2.74 and $9.67 in the 52-week period.

Osmotica said it will receive a $110 million upfront cash payment, with the potential to receive up to $60 million in additional milestone payments.

Osmotica will retain the RVL Pharmaceuticals business focused on ophthalmology and aesthetics, led by its flagship product, Upneeq. Osmotica will also retain arbaclofen extended-release tablets in development to treat multiple sclerosis spasticity.

The company said the proceeds generated by the sale will be used to retire a substantial portion of outstanding indebtedness and to accelerate the commercialization efforts of its flagship product, Upneeq.

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