ANI Pharmaceuticals settles royalty obligation for $17.25 million

BAUDETTE, Minn. - ANI Pharmaceuticals, Inc. (NASDAQ:ANIP), a diversified biopharmaceutical company with a market capitalization of $1.31 billion, has announced the completion of a buyout of its perpetual royalty obligation to SWK Funding LLC concerning worldwide net revenues of ILUVIEN and YUTIQ. The settlement, amounting to $17.25 million, effectively ends the royalty payments to SWK from January 1, 2025, onward. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 2.72, indicating robust financial flexibility for such strategic moves.

The company financed the buyout using its available cash reserves. Nikhil Lalwani, President and CEO of ANI, remarked on the strategic move, stating that the transaction underscores ANI’s commitment to strengthening its Retina portfolio and maximizing the long-term value of ILUVIEN and YUTIQ. Lalwani emphasized that the elimination of the royalty obligation increases ANI’s financial flexibility and positions the company for accelerated growth, in line with its mission of "Serving Patients, Improving Lives." This growth trajectory is already evident in the company’s impressive 26.2% revenue growth over the last twelve months. InvestingPro analysis suggests the company is currently trading slightly below its Fair Value, with analysts projecting earnings of $6.35 per share for fiscal year 2025.

ANI Pharmaceuticals is known for its focus on developing and marketing novel products in rare diseases, with a portfolio that spans ophthalmology, rheumatology, nephrology, neurology, and pulmonology. The company also has a generics business that capitalizes on its R&D expertise and U.S.-based manufacturing, as well as a brands business.

This financial maneuver comes as part of ANI’s broader strategy to enhance its market position and ensure sustainable growth. By settling the royalty obligation, the company aims to increase its operational efficiency and potentially boost profitability from its product offerings.

The information in this article is based on a press release statement from ANI Pharmaceuticals, Inc. Investors and the market will be watching closely to see how this strategic decision plays out for ANI in the competitive biopharmaceutical landscape.

In other recent news, ANI Pharmaceuticals received FDA approval for an updated label of its ILUVIEN product, now including treatment for chronic non-infectious uveitis affecting the posterior segment of the eye. This expansion complements its existing use for diabetic macular edema and is set to be marketed later this year in the U.S. Meanwhile, Jefferies initiated coverage on ANI Pharmaceuticals with a Buy rating and an $80 price target, citing the company’s momentum driven by Cortrophin Gel and generics. JPMorgan also started coverage with an Overweight rating and a higher target of $85, highlighting strong prospects for Cortrophin Gel and recent product acquisitions like Yutiq and Iluvien.

Truist Securities maintained a Hold rating with a $62 target, noting the company’s strategic rebranding efforts to manage the impact of Iluvien and Yutiq. Leerink Partners raised its price target to $82, following ANI Pharmaceuticals’ better-than-expected fourth-quarter results and an upward revision of 2025 revenue and EBITDA guidance. The firm emphasized the potential growth of Cortrophin Gel and the importance of the Iluvien/Yutiq acquisition. These developments reflect ANI Pharmaceuticals’ ongoing transformation towards a focus on branded rare disease products.

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