Aytu BioScience Enters Agreement to Acquire Innovus Pharmaceuticals

Biotech Investing

Aytu BioScience (NASDAQ:AYTU) has announced that it and Innovus Pharmaceuticals OTCQB:INNV) have entered into a definitive merger agreement where Aytu will acquire Innovus for up to US$8 million  in shares of Aytu common stock. As quoted in the press release: This initial consideration to Innovus common shareholders is estimated to consist of approximately 4.2 million shares …

Aytu BioScience (NASDAQ:AYTU) has announced that it and Innovus Pharmaceuticals OTCQB:INNV) have entered into a definitive merger agreement where Aytu will acquire Innovus for up to US$8 million  in shares of Aytu common stock.

As quoted in the press release:

This initial consideration to Innovus common shareholders is estimated to consist of approximately 4.2 million shares of Aytu stock. Additional consideration for up to $16 million in milestone payments in the form of contingent value rights (CVRs) may be paid to Innovus shareholders in cash or stock over the next five years if certain revenue and profitability milestones are achieved.

Innovus generated more than $24 million in revenue in the four quarters ending June 30, 2019.

Through this combined entity, Aytu will expand into the $40 billion consumer healthcare market with a portfolio of over thirty consumer products competing in large therapeutic categories including diabetes, men’s health, sexual wellness and respiratory health. This expanded product line broadens Aytu’s portfolio beyond prescription therapeutics to enable wider revenue distribution, reduced seasonality associated with Aytu’s seasonal antitussive product line, and higher revenue from an expanded base of proprietary products.

Click here to read the full press release.

The Conversation (0)
×