• Osmotica Pharmaceuticals plc (NASDAQ: OSMT) has agreed to sell its portfolio of legacy products and Georgia manufacturing facility, for up to $170 million, to Alora Pharmaceuticals LLC.

  • Osmotica 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.

  • It will also keep aarbaclofen extended-release tablets in development to treat Multiple Sclerosis spasticity.

  • "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," said Brian Markison, CEO of Osmotica Pharmaceuticals.

  • The transaction is expected to close in the third quarter of 2021.

  • Barclays Bank PLC and Jefferies LLC are acting as financial advisors. TAP Advisors is acting as exclusive financial advisor to Alora on the transaction.

  • Osmotica Management will host a conference call today at 8:30 a.m. ET.

  • Price Action: OSMT shares are up 71.1% at $4.86 during the premarket session on the last check Friday.

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