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  • Why is Osmotica Pharmaceuticals plc (OSMT) stock soaring in Pre-Market today?

    Osmotica Pharmaceuticals plc (OSMT) stock announced the definitive purchase and sale agreement with Alora Pharmaceuticals, LLC on June 25, 2021, after which the OSMT stock price saw a push of 38.88%  in the pre-market trading session to reach $3.93 a share as of this writing. The stock was even bullish in the previous trading session and went up by 1.43% at closing. Let’s check out more about Osmotica stock.

    Agreement with Alora Pharmaceuticals:

    According to the purchase and sale agreement of Osmotica Pharmaceuticals with Alora Pharmaceuticals, Osmotica’s portfolio of legacy products and its manufacturing facility in Georgia, Marietta will be acquired by Alora for an amount up to $170 million. Alora will give $110 million as an upfront cash payment to Osmotica with the potential of additional milestone’s $60 million payments.

    RVL Pharmaceuticals business that has UPNEEQ® as its flagship product and mainly focused on ophthalmology and aesthetics will be retained by OSMT stock. Moreover, Osmotica will also retain the development of arbaclofen extended-release (“ER”) tablets that are used in the treatment of  Multiple Sclerosis (“MS”) spasticity.

    Financial Performance in First Quarter 2021:

    Back in the previous month, the OSMT stock did announce the first quarter of 2021 financial results according to which total revenues decreased more than half to drop at  $23.9 million as compared to $48.6 million in the same tenure of the previous year.

    The net loss suffered by OSMT stock recorded more than tripled to reach $9.6 million in the recently reported quarter as compared to $3.1 million net loss in the same period of the prior year.

    Adjusted EBITDA loss of Osmotica stock was 5.8 million while the previous year adjusted EBITDA for the same quarter was $11.1 million.

    Expenses in first Quarter 2021:

    Osmotica stock spent $18.9 million in selling, general and administrative expenses in the first three months of 2021 which represents those expenses were reduced as compared to $21.2 million in the first quarter of 2020.

    Research and development expenses shrank to  $3.3 million in the last reported quarter from  $5.7 million in the first quarter of 2020.

    Balance Sheet:

    OSMT stock had cash and cash equivalents of $109.2 million and $50.0 million borrowing availability by the end of March 2021 along with $219.8 million debt.

    Conclusion:

    Investors are responding positively to the purchase and sale agreement announced by Osmotica stock today as it is bullish as far as market sentiment is concerned. The earnings results were significantly low as compared to the previous year’s same quarter results. Investors need to be cautious before adding this stock to their portfolio.

  • Osmotica Pharma PLC (OSMT) Stock Recovering Following Continued Growth of Upneeq

    Osmotica Pharma PLC (OSMT) Stock Recovering Following Continued Growth of Upneeq

    Osmotica Pharma PLC (OSMT) stock prices stayed stable over the course of the market day on June 17th, 2021. Subsequent pre-market fluctuations have seen the stock climb by 3.74%, bringing it up to USD$3.05.

    Upneeq Snowball Effect

    The first quarter of the fiscal year 2021 saw the company ride the momentum generated by the earlier launch of Upneeq, the first and only FDA-approved ophthalmic solution for the treatment of acquired ptosis in adults. The growth accelerated since the launch, with Q1 2021 having reported a 74% quarter-over-quarter growth in paid subscriptions. Paid subscriptions for the month of April were 17% higher than the previous month, reflecting the increased exposure of Upneeq and the familiarity of more and more eye care professionals with it. The company is keen to spearhead its market penetration and expand the scope of exposure of Upneeq.

    Upneeq Developments

    Upneeq established itself as an invaluable asset with it being awarded the 2021 Medtech Breakthrough Award. The company’s partner, Santen Pharma, had a successful meeting with the Japanese equivalent of the FDA, the PMDA, and subsequently made plans to initiate clinical trials in the very near future. The success of the meeting was reflected by the USD$10 million milestone as per its licensing agreement, which it anticipates receiving in the second quarter of 2021.

    Arbaclofen

    The company has submitted a revised study protocol of arbaclofen to the FDA, with the belief that the treatment has the potential to play an essential role in MS spasticity. OMST is also in advanced discussions with several parties as a part of the previously announced execution of its strategic process focus on its legacy portfolio.

    Financial Reports

    Revenues for the first quarter of the fiscal year 2021 came in at USD$23.9 million, down from the USD$48.6 million reported in the prior year quarter. Net loss was on the rise, with Q1 2021 reporting USD$9.6 million, up from the USD$3.1 million net loss reported for the first quarter of 2020. As of March 31st, 2021, the company reported cash and cash equivalents on the amount of USD$109.2 million, against a debt of USD$219.8 million.

    Future Outlook for OSMT

    Armed with the continuously expanding actualization of the commercial potential of Upneeq, OSMT is poised to return to its trajectory of growth after a consistent few days of the stock trending down. Current and potential investors are hopeful that management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.