Assertio To Divest Shingles Pain Drug To Alvogen For $127.5M
Zacks Investment Research | Dec 12, 2019 08:39PM ET
Assertio Therapeutics, Inc. (NASDAQ:ASRT) inked a deal with Alvogen to sell its product Gralise (gabapentin) to the latter for a total value of $127.5 million. The consideration includes $75 million in cash upon closing of the deal and the balance in the form of a royalty on the first $70 million in Gralise net sales. Both companies expect the majority of the royalties to be paid in the first calendar year.
Assertio intends to focus on the growth of its other pain products by divesting Gralise. Alvogen will now assume all responsibilities associated with the product. The transaction is expected to close in early January 2020, subject to regulatory approval.
The shares of Assertio have slumped 65.9% year to date against the Zacks Investment Research
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