Aytu BioScience Inc (NASDAQ: AYTU) is climbing in the market this morning, and for good reason. The company announced that it has entered into a distribution agreement, exciting investors and pushing the stock on a run for the top. Today, we’ll talk about:
- The distribution agreement;
- what we’re seeing from AYTU stock as a result; and
- what we’ll be watching for ahead.
AYTU Announces Distribution Agreement
As mentioned above, Aytu BioScience is running for the top in the market this morning after announcing a distribution agreement. The agreement announcement came by way of press release early this morning.
In the release, the company said that the agreement was signed with SUDA Pharmaceuticals. Under the agreement SUDA will distribute ZolpiMist outside of the United States and Canada.
ZolpiMist is a rapid-acting oral spray sleep aid. AYTU reminded investors that ZolpMist is the only FDA-approved oral spray formulation of Zolpidem Tartrate, the active ingredient in Ambien.
Under the terms of the agreement, SUDA has been granted an exclusive license to market and distribute ZolpMist in major markets outside of the United States and Canada.
Under the terms of the agreement, SUDA will lead commercial development and sublicensing efforts for ZopiMist in the covered markets. The company has already signed sublicensing agreements in key markets with large, multi-national pharmaceutical companies and has agreements in place in China, Chile, Brazil, and Southeast Asia.
In a statement, Josh Disbrow, CEO at AYTU, had the following to offer:
We are pleased to be partnering with SUDA as they develop ZolpiMist commercial opportunities around the world. In a short period of time the SUDA team has entered into several sublicensing arrangements with prominent pharmaceutical companies. As such, we expect to see regulatory clearance in at least one market in the coming year. We thank CEO Stephen Carter and the SUDA team for their partnership and look forward to working with SUDA as they continue their ongoing commercial efforts with ZolpiMist around the world.
The above statement was followed up by Stephen Carter, Chairman and CEO at SUDA. Here’s what he had to say:
SUDA is pleased to continue its ZolpiMist program with Aytu. We have a number of discussions in place to further the global footprint of the ZolpiMist brand. We are looking forward to the ongoing achievement of commercial milestones and the continued roll out of regulatory submissions with our partners.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to AYTU, the news proved to be incredibly positive.
This agreement is a huge step that will likely become a strong revenue driver in the years to come. So, it’s not surprising that excited investors are sending the stock on a run upward in the market today.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:17), AYTU is trading at $1.58 per share after a gain of $0.48 per share or 43.56% 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 continued work to bring its products to patients around the world. Nonetheless, we’ll continue to keep an eye on the news and bring it to you as it breaks!
What Do You Think?
Where do you think AYTU is headed? Join the discussion in the comments below!
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