Eagle Pharma Broadens Acute Care Portfolio With Equity Stake In Respiratory Depression Player

• Eagle Pharmaceuticals Inc (NASDAQ: EGRX) has agreed to make a $25 million equity investment in Enalare Therapeutics Inc.

• 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.

See more from Benzinga

• Azenta's Enhances Position in Cold Chain Solutions With €410M Acquisition

• AstraZeneca's Dato-DXd-Based Combo Therapies Show Promising Activity In Lung Cancer Patients

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.