UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 8.01 Other Events.
On September 13, 2022, Eton Pharmaceuticals, Inc. issued a press release announcing that it had acquired betaine anhydrous for oral solution.
Under terms of the agreement, Eton paid the seller $2.0 million upon signing for the acquisition and all existing inventory, and will pay to the seller 35% of product profits for a period of ten years, plus potential contingent payments of up to an additional $1.0 million, including:
| ● | $0.25 million on the twelve month anniversary of closing | |
| ● | $0.25 million when net sales of the product exceed $4.0 million in a calendar year | |
| ● | $0.50 million if no additional generic competitors have launched within 48 months after closing |
A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits
| Exhibit 99.1 | Press Release dated September 13, 2022 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
| 2 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: September 13, 2022 | By:
|
/s/ James R. Gruber |
| James R. Gruber | ||
| Chief Financial Officer and Secretary | ||
| (Principal Financial Officer) |
| 3 |
Exhibit 99.1
Eton Pharmaceuticals Announces Acquisition of FDA-Approved Rare Disease Product, Betaine Anhydrous for Oral Solution
-- Expected to be accretive to 2023 earnings --
DEER PARK, Illinois – September 13, 2022 – Eton Pharmaceuticals (“Eton” or “the Company”) (Nasdaq: ETON), an innovative pharmaceutical company focused on developing and commercializing treatments for rare diseases, today announced the acquisition of betaine anhydrous for oral solution.
“We are excited to add another FDA-approved rare disease product to our growing metabolic genetics portfolio. Betaine shares the same prescriber base as our carglumic acid tablets, so it is an attractive opportunity to leverage our existing commercial infrastructure. We plan to integrate the product later this year and expect the transaction to be accretive to 2023 earnings,” said Sean Brynjelsen, CEO of Eton Pharmaceuticals. “This acquisition allows us to further advance our mission of commercializing products for small, underserved orphan populations, and we will continue to seek out attractive late-stage rare disease products to expand our portfolio.”
Betaine anhydrous for oral solution targets a population of fewer than 2,000 patients in the United States, with an estimated market of $10 million annually.
About Eton Pharmaceuticals
Eton Pharmaceuticals, Inc. is an innovative pharmaceutical company focused on developing, acquiring, and commercializing treatments for rare diseases. The Company currently commercializes ALKINDI SPRINKLE® and Carglumic Acid tablets and has four additional rare disease products under development, including dehydrated alcohol injection and the ZENEO® hydrocortisone autoinjector. For more information, please visit our website at www.etonpharma.com.
Investor Relations:
Lisa M. Wilson, In-Site Communications, Inc.
T: 212-452-2793
E: lwilson@insitecony.com
Source: Eton Pharmaceuticals