Eton Pharmaceuticals shares jump on acquisition news
Stock surges after company announces deal to acquire rights to Vaprisol, a vasopressin receptor antagonist, from Cumberland Pharmaceuticals.
Eton Pharmaceuticals Inc. shares rose sharply on Monday after the company said it had agreed to acquire the U.S. rights to Vaprisol, a vasopressin receptor antagonist, from Cumberland Pharmaceuticals Inc.
The deal, valued at up to $15 million, includes an upfront payment of $5 million and potential milestone payments totaling $10 million. Eton Pharmaceuticals said it expects the acquisition to close in the third quarter of 2024, subject to customary closing conditions.
Vaprisol is currently approved for the treatment of euvolemic and hypervolemic hyponatremia in hospitalized patients. The drug is used to manage low sodium levels in patients with conditions such as heart failure and cirrhosis.
Eton Pharmaceuticals, which focuses on developing and commercializing treatments for rare diseases, said the acquisition would expand its portfolio of critical care therapies. The company did not disclose financial terms beyond the upfront and milestone payments.
Shares of Eton Pharmaceuticals were up 12% at $14.50 in midday trading on Monday, following the announcement.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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