Eton Pharmaceuticals sells neurology portfolio

DEER PARK - Eton Pharmaceuticals Inc. said Monday it has sold its neurology portfolio to Azurity Pharmaceuticals for up to $45 million. The portfolio includes Eton's lamotrigine, zonisamide and topiramate drug candidates, which have all been submitted to the U.S. Food and Drug Administration for approval and are currently under review by the agency.

This transaction was a very compelling opportunity for Eton. It allows us to focus on growing our orphan drug business, provides us with an attractive return on our investment in the products, increases our profitability, and brings us into partnership with an industry leader in innovative dosage forms," said Sean Brynjelsen, CEO of Eton Pharmaceuticals, which focuses on developing and commercializing treatments for rare pediatric diseases.

"With this transaction, we will no longer need to invest in a neurology sales force, which will significantly increase our profitability in 2021 and 2022," Brynjelsen said.

Azurity will assume control of all three products and will be responsible for commercialization following regulatory approval. Eton will support Azurity in the transition and through regulatory approval.

Under the terms of the transaction, Eton will receive a single-digit percentage royalty on Azurity's net sales of the products. Eton will remain responsible for certain licensing fee obligations owed to its development partners and Azurity will assume royalty or profit-share obligations owed to development partners.