OSMT - Osmotica surges on deal to sell legacy business and manufacturing facility

Delmaine Donson/E+ via Getty Images Osmotica Pharmaceuticals (OSMT) has climbed ~44.0% in the pre-market after the company announced an agreement with Alora Pharmaceuticals to sell its portfolio of legacy products and Marietta, Georgia manufacturing facility for up to $170M. Per the terms, Osmotica is set to receive a $110M upfront cash in addition to potential milestone payments worth $60M. The transaction to be closed in Q3 2021 have already received the approval of the Boards of Directors of both Osmotica and Alora. “Today’s announcement is a meaningful step in the transformation of our business and aligns with our strategy of building a portfolio of growth assets in ocular aesthetics,” noted Osmotica CEO, Brian Markison. “The proceeds generated by the sale will be used to retire a substantial portion of our outstanding indebtedness and position us to accelerate the commercialization efforts of our flagship product, UPNEEQ.”

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Osmotica surges on deal to sell legacy business and manufacturing facility