Eton sells hospital products business for up to $50 million
DEER PARK -- Eton Pharmaceuticals Inc. Friday said it has sold its hospital products business to Dr. Reddy's Laboratories Ltd. 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," said Sean Brynjelsen, CEO of Eton Pharmaceuticals. "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."
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 ampul 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, Eton said.
Following the transaction, Eton's commercial activities will be solely focused on rare disease products with a portfolio of four product candidates, two of which are currently FDA-approved commercial products.