Assertio Therapeutics Inc (NASDAQ: ASRT) was a top gainer on Friday, after closing the day with gains of 46.15%. This came after the company announced that, it had entered into an agreement with Collegium for the sale of its NUCYNTA franchise.
Under the deal, Collegium will buy NUCYNTA for $375 million in cash. Collegium’s purchase will not include royalties that Assertio will receive in 2020. The buyer will also pay Assertio for some inventories and equipment for some of its products.
Assertio announced that it will use the money from this sale to pay off some of its outstanding debt. Commenting on the deal, Assertio CEO Arthur Higgins stated that, part of the company’s success in the last couple of years has come from an aggressive de-leveraging campaign. He added that they have done it successfully and delivered a strong bottom-line and that, the sale of NUCYNTA marked an end to this journey. Higgins further stated that, with this transaction, the company intended to retire all its debt and remain with about $50 million in cash in its balance sheet.
He also said that, the company would use the flexibility that it has achieved to pursue business development, forge strategic partnerships, and seek out new investment opportunities with the goal of having their post-sale business turn cash flow positive by the end of 2020. He concluded by stating that, the company has enjoyed a successful commercial partnership with Collegium, which is why they decided the company was the best home for NUCYNTA.
From a look at its price action, ASRT gapped up to open the day at $1.67. It then treaded between a low of $1.44 and a high of $1.71 before closing the day at $1.52. Volumes in the day stood at 28.4 million.
About Assertio Therapeutics Inc
Assertio Therapeutics Inc is a pharmaceutical company that offers medicines for neurology and other specialty areas. It is based on Lake Forest, Illinois.