Eagle Pharma Broadens Acute Care Portfolio With Equity Stake In Respiratory Depression Player

  • Eagle Pharmaceuticals Inc EGRX has agreed to make a $25 million equity investment in Enalare Therapeutics Inc.
  • The investment consists of upfront investment of $25 million, $12.5 million now, and $12.5 to be paid in six months, and two potential follow-on equity investments of $15 million each contingent on certain milestones on an agreed-upon timeline. 
  • The investment also includes an exclusive option for Eagle to acquire all remaining Enalare stock upon achieving development milestones as outlined in the agreement.
  • The deal could be between $100-$175 million plus sales-based royalty rights ranging from 9%-12%.
  • The transaction is expected to provide Eagle with products protected by intellectual property rights, including the composition of matter patents, potentially providing patent term from the mid-2030s to the early 2040s.
  • Enalare's lead compound, ENA-001, is an investigational, one-of-a-kind NCE designed as an agnostic respiratory stimulant.
  • Approval for post-operative respiratory depression is expected in 2026, and community drug overdose after that.
  • Earnings: Eagle Pharma reported Q2 sales of 74.1 million, up from $48.1 million a year ago, missing the consensus of $116.89 million.
  • Adjusted EPS of $1.56 came in below the wall Street estimate of $3.36.
  • Price Action: EGRX shares closed at $43.09 on Monday.
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