The investment consists of upfront investment of $25 million, $12.5 million now, and $12.5 to be paid in six months, and two potential follow-on equity investments of $15 million each contingent on certain milestones on an agreed-upon timeline.
The investment also includes an exclusive option for Eagle to acquire all remaining Enalare stock upon achieving development milestones as outlined in the agreement.
The deal could be between $100-$175 million plus sales-based royalty rights ranging from 9%-12%.
The transaction is expected to provide Eagle with products protected by intellectual property rights, including the composition of matter patents, potentially providing patent term from the mid-2030s to the early 2040s.
Enalare's lead compound, ENA-001, is an investigational, one-of-a-kind NCE designed as an agnostic respiratory stimulant.
Approval for post-operative respiratory depression is expected in 2026, and community drug overdose after that.
Earnings: Eagle Pharma reported Q2 sales of 74.1 million, up from $48.1 million a year ago, missing the consensus of $116.89 million.
Adjusted EPS of $1.56 came in below the wall Street estimate of $3.36.
Price Action: EGRX shares closed at $43.09 on Monday.
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