Full Press Release Details
Aytu BioScience Announces Closing of $12.4M Prescription Product
Increases Combined Company Annual Revenue to $44M, Including
Previously Announced Acquisition of Innovus
in Near-Term Cost Savings Expected Through Efficient Sales Force
Integration and Removal of Redundant Operations
ENGLEWOOD, CO / ACCESSWIRE / November 4, 2019 / Aytu
BioScience, Inc. (NASDAQ: AYTU), a specialty pharmaceutical company
focused on global commercialization of novel products addressing
significant medical needs, today announced the closing of the
previously announced purchase of a
annual revenue prescription product portfolio (the
Commercial Portfolio ) and accompanying commercial
infrastructure from Cerecor. With this acquisition, along with the
previously announced acquisition of Innovus Pharmaceuticals,
combined company annual revenue increases to over $44 million,
based on combined company revenue for the twelve months ending June
asset acquisition increases Aytu's prescription portfolio to
nine differentiated products primarily promoted to high prescribing
primary care and pediatric physicians.
and Cerecor signed a letter of intent to acquire the $12.4M
Commercial Portfolio and accompanying commercial infrastructure
earlier last month and closed the transaction November 4, 2019.
Aytu paid Cerecor consideration of $4.5M in cash and issued
approximately 9.8 million convertible preferred Aytu shares. These
shares are locked up until July 1, 2020 and, upon the expiry of the
holding period, are convertible into common shares subject to
various conditions. Total consideration paid, based on Aytu's
closing share price on November 1, 2019 is approximately $14.6M, or
1.2x LTM revenue, plus the assumption of debt as previously
details of the acquisition and full description of the acquired
Commercial Portfolio were provided in a press release on October
14, 2019 and can be found on the Investors and News pages of
company's website, aytubio.com, and on Form 8-K as filed with
the Securities and Exchange Commission on October 15, 2019 and
conjunction with the closing of the transaction, the company
announced an integration and cost saving plan designed to
significantly accelerate the company's time to profitability.
The company has completed an immediate headcount reduction through
the removal of overlapping sales representatives, sales managers,
and other redundant employees. Through this rationalization, the
company expects to realize over $5 million in savings on an annual
basis once employee separation and other transaction-related
expenses have been paid.
removal of $5 million in expenses is expected to result in a cash
burn reduction of approximately 40% across the two entities.
Increasing product sales along with additional expense reductions
through removal of redundant processes and commercial service
providers are expected to further accelerate the company's
time to achieve profitability.
Disbrow, Chief Executive Officer of Aytu BioScience stated,
We are pleased to have completed this asset purchase so
quickly and are looking forward to implementing our growth plan
through this combination. This asset purchase enables greater
commercial scale as we now have a three-fold larger Rx product
portfolio. Each product is unique, and all products are well
positioned in their respective categories. The opportunity for
growth across the product line is exciting. Further, through the
reduction of redundant, overlapping sales territories and
personnel, we expect to save more than $5 million and accelerate
our time to profitability. Achieving profitability is an important
aspect of driving shareholder value in the near term, and
we've taken a significant step to accelerate that
Disbrow continued, We have begun integrating a
high-performing sales team, and through sales force cross training
that is underway, we expect to increase the promotional noise on
our growth products and increase prescription sales. Combining the
two sales teams has enabled us to evaluate all aspects of our
commercial organization and implement the best practices from both
teams. Through the reduction in headcount completed last week, we
are retaining the highest performing people from both
organizations. I'm looking forward to seeing these
individuals drive near-term prescription and revenue growth. This
is an exciting time as we welcome new high-performing sales
professionals to complement the high performers already at Aytu and
accelerate the growth trajectory of the new Aytu
About Aytu BioScience, Inc.
BioScience is a commercial-stage specialty pharmaceutical company
focused on commercializing novel products that address significant
patient needs. The company currently markets Natesto , the
only FDA-approved nasal formulation of testosterone for men with
hypogonadism (low testosterone, or "Low T"). Aytu also has
exclusive U.S. and Canadian rights to ZolpiMist , an
FDA-approved, commercial-stage prescription sleep aid indicated for
the short-term treatment of insomnia characterized by difficulties
with sleep initiation. Aytu is the exclusive U.S. licensee with
commercial rights to Tuzistra XR, the only FDA-approved
12-hour codeine-based antitussive syrup. Tuzistra XR is a
prescription antitussive consisting of codeine polistirex and
chlorpheniramine polistirex in an extended-release oral suspension.
Additionally, Aytu is developing MiOXSYS , a novel, rapid
semen analysis system with the potential to become a standard of
care for the diagnosis and management of male infertility caused by
oxidative stress. MiOXSYS is commercialized outside of the U.S.
where it is a CE Marked, Health Canada cleared, Australian TGA
approved, Mexican COFEPRAS approved product, and Aytu is planning
U.S.-based clinical trials in pursuit of 510k de novo medical
device clearance by the FDA. 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