Benzinga | Dec 2, 2020 07:04AM EST

Osmotica Pharmaceuticals plc Announces Agreement to Settle Patent Litigation with Adamas; Adamas Will Acquire Global Rights To OSMOLEX ER $7.5M

Adamas to acquire global rights to OSMOLEX ER(r) for $7.5 million

Company to focus on maximizing commercial opportunity for Upneeq(tm)

BRIDGEWATER, N.J., Dec. 02, 2020 (GLOBE NEWSWIRE) -- Osmotica Pharmaceuticals plc (NASDAQ:OSMT) ("Osmotica" or the "Company"), a fully integrated biopharmaceutical company, announced today that its subsidiary Osmotica Pharmaceutical US LLC has entered into an agreement to settle its ongoing patent litigation with Adamas Pharmaceuticals, Inc. related to OSMOLEX ER. Under the terms of the agreement, both parties will drop their respective claims relating to the patent litigation, and Adamas will acquire the global rights to OSMOLEX ER for $7.5 million. The agreement is expected to close in early 2021.

OSMOLEX ER (amantadine) extended release tablets is approved by the U.S. Food and Drug Administration ("FDA") for the treatment of Parkinson's disease and drug-induced extrapyramidal reactions in adult patients. As part of the settlement and acquisition, the parties will enter into a supply agreement pursuant to which Osmotica will remain the sole manufacturer of OSMOLEX ER. Adamas will receive existing inventory and all rights to OSMOLEX ER. The parties are committed to working together to ensure uninterrupted product supply to patients.

"This transaction aligns with our previously stated intention of considering strategic alternatives, including the divestiture of non-core assets, so that we can focus resources on growing Upneeq(tm) (oxymetazoline hydrochloride ophthalmic solution), 0.1% and supporting our investigational drug arbaclofen extended-release tablets should it receive approval on its PDUFA goal date later this month. We will continue to take advantage of opportunities to monetize assets and free up resources with the goal of realizing the full potential of these two assets," stated Brian Markison, Chief Executive Officer.