Aytu BioPharma Sells U.S. Rights For Natesto To Acerus Pharma; Street Sees 131.5% Upside


Specialty pharmaceutical company Aytu BioPharma Inc agreed to divest all remaining  U.S. rights to Natesto to Acerus Pharma for a total consideration of $7.5 million. This consideration is payable in 30 monthly instalments of $250,000.

Aytu BioPharma’s (AYTU) Chief Executive Officer, Josh Disbrow said, “This strategic transaction is an important milestone for Aytu BioPharma as it solidifies our go-forward therapeutic focus on pediatric medicine and plan to become a leading specialty paediatrics company.”

Disbrow further added, “In conjunction with finalizing and closing the merger with Neos Therapeutics, we conducted a strategic review of our legacy Rx business. Following that review, we believe focusing commercial efforts on our newly expanded portfolio of ADHD and pedriatic products provides the best opportunity to increase shareholder value.” (See Aytu BioPharma stock analysis on TipRanks)

Acerus is also purchasing all Natesto inventory from Aytu and assumed Natesto product responsibilities from April 1.

Aytu closed its merger with Neos Therapeutics on March 22. This transformed it into a specialty pharma company with $100 million in revenue.

On March 29, Cantor Fitzgerald analyst Jennifer Kim  assigned the stock a Buy rating and a price target of $11 (45% upside potential).

Kim commented, Aytu has built up “a highly diversified, growing portfolio” focused on paediatrics and thinks Aytu’s opportunities for sales growth remain “underappreciated.”

The other analyst covering the stock, H. C. Wainwright’s Vernon Bernardino also has a Buy rating on the stock and a price target of $24 (217.5% upside potential).

The two ratings combine to a Moderate Buy consensus rating with average analyst price target of $17.50 (131.5% upside potential. Shares have dropped about 50.6% over the past year.

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