Eton Pharmaceuticals (NASDAQ:ETON) Completes Acquisition of Increlex® from Ipsen S.A.

Eton Pharmaceuticals, Inc. has successfully finalized its asset purchase of Increlex® (mecasermin injection) from Ipsen S.A., as disclosed in a recent 8-K filing with the Securities and Exchange Commission. Increlex® is a biologic product specifically designed to address severe primary insulin-like growth factor 1 deficiency (SPIGFD) in children and adolescents aged two to 18 years.

The deal was sealed at $22.5 million during the closing, accompanied by an additional $8.7 million allocated for product inventory. Moreover, Eton Pharmaceuticals is obligated to make payments of $2.5 million on each of the first and second anniversaries following the closing date. Over the course of the next 30 months, the company will also acquire additional inventory, not surpassing €15.0 million in value.

Consequently, Eton Pharmaceuticals adjusted its existing credit arrangement with SWK Holdings, subsequent to the closure of the purchase agreement. The updated terms involve an expansion of the credit facility by $25.7 million, leading to a total of $30.0 million, an extension of the maturity period to three years post-closure, and a decrease in the annual interest rate to Secured Overnight Financing Rate (SOFR) plus 6.75%. Additionally, as part of the transaction, the company issued a warrant to the lender for the potential acquisition of up to 289,736 shares of common stock priced at $5.32 per share.

For more information on this acquisition, a press release issued on December 20, 2024, outlining the transaction details has been included as Exhibit 99.1 in the Form 8-K filing.

In adherence to the requisites of the Securities Act and the Exchange Act, Eton Pharmaceuticals duly completed its 8-K filing with an exhibit detailing the press release issued regarding this transaction, in addition to fulfilling disclosure requirements related to financial statements and exhibits.

With the completion of this acquisition transaction, Eton Pharmaceuticals anticipates further strengthening its market position and expanding its offerings within the pharmaceutical industry.

This concludes the report on Eton Pharmaceuticals’ recent acquisition of Increlex® and the corresponding adjustments to its credit agreement with SWK Holdings.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Eton Pharmaceuticals’s 8K filing here.

About Eton Pharmaceuticals

Eton Pharmaceuticals, Inc, a specialty pharmaceutical company, focuses on developing, acquiring, and commercializing pharmaceutical products for rare diseases. The company offers ALKINDI SPRINKLE, a replacement therapy for adrenocortical insufficiency in children under 17 years of age; Carglumic Acid for the treatment of acute and chronic hyperammonemia due to N-acetylglutamate Synthase deficiency; Betaine Anhydrous for the treatment of homocystinuria; and Nitisinone for the treatment of tyrosinemia type 1.