Aytu BioScience Inc (NASDAQ: AYTU) is having an incredibly strong start to the trading session this morning, and for godo reason. The company announced that through the execution of an exclusive licensing agreement, it has entered into a new market. Of course, the news led to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about:
- The industry entrance;
- what we’re seeing from AYTU as a result;
- and what we’ll be watching for with regard to the stock ahead.
AYTU Announces Industry Entrance
As mentioned above, Aytu BioScience is having an incredibly strong start to the trading session this morning after the company announced that it has entered into a new market. In a press release issued early this morning, the company annunced that it has exclusively licensed Zolpimist™ (zolpidem tartrate oral spray) in the United States and Canada.
In the release, AYTU said that annual sales in the United States prescription sleep aid category were $1.8 billion over the 12-month period ending February 2018. As a result, the company believes that the addition of Zolpimist™ will complement ongoing Natesto selling efforts among primary care physicians and add another revenue-generating product to its portfolio. In a statement, Josh Disbrow, CEO at AYTU, had the following to offer:
We continue to be pleased with the ongoing launch of Natesto in the U.S. via the Company’s direct sales force and the momentum we have achieved through our recently launched Natesto Support Program. We are now excited to add another approved product to our portfolio. Given the substantial overlap in prescribers of testosterone replacement therapies, and Natesto in particular, and anti-insomnia treatments, we believe that this acquisition enables the Company to efficiently expand its product portfolio and market both Natesto and Zolpimist to the primary care physicians we already call on. Our prescribers have embraced the novel nasal delivery of Natesto for the treatment of hypogonadism, and likewise, we believe that Zolpimist’s uniquely-delivered oral spray will present a unique, complementary clinical story in a similarly large, adjacent therapeutic category. We look forward to launching Zolpimist while continuing to drive adoption of Natesto in the U.S.
What We’re Seeing From The Stock
As investors, one of the first lessons we learn is that the news moves the market. In the case of Aytu Biosciences, the news proved to be overwhelmingly positive. With the entrance into the new market, a new revenue stream is created. Of course, the news is exciting investors, sending the stock toward the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:00), AYTU is trading at $0.44 per share after a gain of $0.055 per share or 14.29% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AYTU. In particular, we’re interested in following the story surrounding the company’s sales efforts, now that the Zolpimist product is on the table. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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