Benzinga | Feb 8, 2021 09:29AM EST

Eton Pharmaceuticals Offloads Neurology Portfolio To Azurity Pharmaceuticals For $45M

* Eton Pharmaceuticals Inc (NASDAQ: ETON) has sold its neurology portfolio that includes lamotrigine (ET-105), zonisamide (ET-104), and topiramate (ET-101) product candidates, to Azurity Pharmaceuticals. The marketing applications for all three candidates are currently under review with the FDA.

* Azurity will be responsible for commercialization following regulatory approval, though Eton will support Azurity in the transition and through regulatory approval.

* "This transaction allows us to focus on growing our orphan drug business." We will no longer need to invest in a neurology sales force, which will significantly increase our profitability in 2021 and 2022." said Sean Brynjelsen, CEO of Eton Pharmaceuticals.

* Last month, the company acquired Canadian rights to ALKINDI SPRINKLE from Diurnal Group plc. Eton currently commercializes ALKINDI SPRINKLE in the U.S. as replacement therapy for Adrenocortical Insufficiency in children under 17.

* Under the terms of the transaction, Eton will receive up to $45 million in payments from Azurity, including $15 million at closing, $15 million upon achievement of approval and product launch milestones, and the remaining $15 million upon achievement of commercial sales milestones.

* Besides, Eton is eligible to receive a single-digit percentage royalty on Azurity's products' net sales.

* Price Action: ETON gains 1.2% at $10 in premarket trading on the last check Monday.