Full Press Release Details
Announces $15 Million Debt Retirement
Company Retires $15M Obligation Assumed with
Previously Announced Cerecor Commercial Portfolio Asset Purchase
ENGLEWOOD, CO / ACCESSWIRE / June 1, 2020
/ Aytu BioScience, Inc. (NASDAQ:AYTU), a specialty pharmaceutical company (the "Company") focused on commercializing
novel products that address significant medical needs, today reported that the Company has retired $15 million in a payment obligation
(the "Balloon Payment Obligation") owed to Deerfield CSF, LLC and affiliated parties (the "Deerfield Parties").
This early payment has satisfied the previously described $15 million Balloon Payment Obligation that was assumed through the Company's
purchase of the former Cerecor prescription product portfolio (the "Commercial Portfolio") announced on November 4,
Josh Disbrow, Chief Executive Officer of Aytu BioScience, commented,
"We are pleased to have retired the $15 million obligation that represents the bulk of the overall fixed amounts payable
to Deerfield following our assumption of this responsibility that came as part of the acquisition of the Cerecor commercial portfolio
last fall. By making this early payment, the Company has removed a large debt overhang, leaving only the $86,840 fixed monthly
payments owed to Deerfield through the end of January 2021. Following the removal of this obligation, and with the large cash infusion
we've had over the preceding two months, the Company's cash balance remains strong and the Company's debt load
is reduced to approximately $1 million."
The details of the Company's early payment of the Balloon
Payment Obligation are included on Form 8-K which was filed with the Securities and Exchange Commission today.
About Aytu BioScience, Inc.
Aytu BioScience, Inc. is a commercial-stage specialty pharmaceutical
company focused on commercializing novel products that address significant patient needs. The Company currently markets a portfolio
of prescription products addressing large primary care and pediatric markets. The primary care portfolio includes (i) Natesto ,
the only FDA-approved nasal formulation of testosterone for men with hypogonadism (low testosterone, or "Low T"), (ii)
ZolpiMist , the only FDA-approved oral spray prescription sleep aid, and (iii) Tuzistra XR, the only FDA-approved 12-hour
codeine-based antitussive syrup. The pediatric portfolio includes (i) AcipHex Sprinkle , a granule formulation of rabeprazole
sodium, a commonly prescribed proton pump inhibitor; (ii) Cefaclor, a second-generation cephalosporin antibiotic suspension; (iii)
Karbinal ER, an extended-release carbinoxamine (antihistamine) suspension indicated to treat numerous allergic conditions;
and (iv) Poly-Vi-Flor and Tri-Vi-Flor , two complementary prescription fluoride-based supplement product lines containing
combinations of fluoride and vitamins in various for infants and children with fluoride deficiency. Aytu recently acquired exclusive
U.S. distribution rights to twohe COVID-19 IgG/IgM rRapid tTests. Theseis coronavirus tests areis a solid phase immunochromatographic
assays used in the rapid, qualitative and differential detection of IgG and IgM antibodies to the 2019 Novel Coronavirus in human
whole blood, serum or plasma. The Company also recently signed an exclusive worldwide licensing agreement with Cedars-Sinai to
develop the Healight technology platform, which is being studied as a potential treatment for COVID-19 and other severe
respiratory infections.
Aytu recently acquired Innovus Pharmaceuticals, a specialty pharmaceutical
company commercializing, licensing and developing safe and effective consumer healthcare products designed to improve men's and
women's health and vitality. Innovus commercializes over thirty-five consumer health products competing in large healthcare categories
including diabetes, men's health, sexual wellness and respiratory health. The Innovus product portfolio is commercialized through
direct-to-consumer marketing channels utilizing the Company's proprietary Beyond Human marketing and sales platform.
Aytu's strategy is to continue building its portfolio of revenue-generating
products, leveraging its focused commercial team and expertise to build leading brands within large therapeutic markets. For more
information visit aytubio.com and visit innovuspharma.com to learn about the Company's consumer healthcare products.
Forward-Looking Statement
This press release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, or the
Exchange Act. All statements other than statements of historical facts contained in this presentation, are forward-looking statements.
Forward-looking statements are generally written in the future tense and/or are preceded by words such as ' may,'' ' will,'' ''should,''
' forecast,'' ' could,'' ' expect,'' ''suggest,'' ' believe,'' ' estimate,'' ' continue,'' ' anticipate,'' ' intend,'' ' plan,''
or similar words, or the negatives of such terms or other variations on such terms or comparable terminology. These statements
are just predictions and are subject to risks and uncertainties that could cause the actual events or results to differ materially.
These risks and uncertainties include, among others: market and other conditions, our ability to successfully commercialize Healight
Platform Technology, our ability to obtain FDA approval for the Healight Platform Technology, the effectiveness of the Healight
Platform Technology in treating patients with COVID-19 or other illnesses, our ability to adequately protect the intellectual property
associated with the Healight Platform Technology, regulatory delays, the reliability of the Healight Platform Technology in killing
viruses and bacteria, market acceptance of UV based medical devices, the regulatory and commercial risks associated with introducing
the COVID-19 rapid tests, any delays in shipment that may impact our ability to distribute the COVID-19 rapid tests, any reputational
harm we may incur if there are delays in receiving the shipment of the COVID-19 rapid tests, our ability to enforce the exclusivity
provisions of the distribution agreements, the reliability of serological testing in detecting COVID-19, shipping delays and their
impact on our ability to introduce the COVID-19 rapid tests, the ability of the COVID-19 rapid tests to accurately and reliably
test for COVID-19, the manufacturers of the COVID-19 rapid tests' ability to manufacture such testing kits on a high volume
scale, manufacturing problems or delays related to the COVID-19 rapid tests, our ability to satisfy any labelling conditions or
other FDA or other regulatory conditions to sell the COVID-19 rapid test kits, the demand or lack thereof for the COVID-19 rapid
test kits, our ability to obtain additional COVID-19 rapid tests to meet demand, our ability to secure additional tests if the
manufacturers of the COVID-19 rapid tests are unable to meet demand, the effects of the business combination of Aytu and the Commercial
Portfolio and the recently completed merger ("Merger") with Innovus Pharmaceuticals, including the combined company's
future financial condition, results of operations, strategy and plans, the ability of the combined company to realize anticipated
synergies in the timeframe expected or at all, changes in capital markets and the ability of the combined company to finance operations
in the manner expected, the diversion of management time on Merger-related issues and integration of the Commercial Portfolio,
the ultimate timing, outcome and results of integrating the operations the Commercial Portfolio and Innovus with Aytu's existing
operations, risks relating to gaining market acceptance of our products, obtaining or maintaining reimbursement by third-party
payors for our prescription products, and their potential future commercialization.
Contact for Investors:
Source: Aytu BioScience, Inc.