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Eton Pharmaceuticals Acquires US Marketing Rights to Pediatric Orphan Drug Alkindi Sprinkle from Diurnal to Enhance Pediatric Portfolio
Tuesday 31 March 2020

US-based speciality pharmaceutical company Eton Pharmaceuticals, Inc (NASDAQ: ETON) has acquired US marketing rights to Alkindi Sprinkle from UK-based Diurnal Group plc (AIM: DNL), the company said.

Upon execution of the agreement, Eton paid to Diurnal USD 3.5m of cash and issued Diurnal 379,474 shares of Eton common stock, representing approximately USD 1.5m based on Eton's average fifteen-day trailing stock price. Upon commercial launch of the product with Orphan Drug Exclusivity granted, Eton will pay to Diurnal a cash milestone payment of USD 2.5m.

In conjunction with the Alkindi Sprinkle transaction, Eton has executed agreements to raise USD 7.8m from the sale of 2.6 m shares of common stock at USD 3.00 per share.

The equity financing was led by Opaleye Management. In addition, Eton's credit facility with SWK Holdings was amended to allow Eton the immediate option to draw USD 2m of debt financing and the option to draw an additional USD 3m after the approval of Alkindi Sprinkle. The financing proceeds will be used to support current and future licensing payments to Diurnal, as well as Alkindi Sprinkle-related launch expenses.

Alkindi Sprinkle's New Drug Application is currently under review with the US Food and Drug Administration for approval as a replacement therapy for pediatric adrenal insufficiency.

The acquisition advances Eton's leadership in pediatric rare diseases products. Alkindi Sprinkle is a strong strategic fit with Eton's existing pediatric portfolio. Eton is committed to developing and bringing to market innovative products that are designed to address unmet needs for pediatric patients by improving product safety, efficacy, or treatment adherence through precision dosing and improved routes of administration.

Eton Pharmaceuticals, Inc. is focussed on developing, acquiring and commercialising innovative products. Eton is primarily focussed on hospital injectable and pediatric oral liquid products.

Diurnal Group plc is a UK-based speciality pharma company developing high quality products for the global market for the life-long treatment of chronic endocrine conditions, including congenital adrenal hyperplasia and adrenal insufficiency.
Date Published: 31/03/2020