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DENVER - Aytu BioPharma, Inc. (NASDAQ:AYTU), currently trading below its InvestingPro Fair Value, has expanded and extended its lending agreement with Eclipse Business Capital LLC, the pharmaceutical company announced Monday.
The amended agreement extends the term loan maturity by 12 months to June 2029 and increases the principal balance to $13.0 million from $11.1 million. Additionally, the company's revolving line of credit facility has been expanded by $1.5 million. The company operates with a moderate debt level of $22.52 million and maintains a current ratio of 1.03, according to InvestingPro data.
According to the company, the expanded facilities will provide additional working capital flexibility as it prepares for the commercial launch of EXXUA (gepirone) extended-release tablets, expected in the fourth quarter of 2025. With a market capitalization of $17.95 million and annual revenue of $81.66 million, the company has shown strong momentum with a 38% price return over the past six months.
EXXUA is a selective serotonin 5HT1a receptor agonist recently approved by the FDA for treating major depressive disorder in adults. Earlier this month, Aytu announced an exclusive agreement to commercialize the drug in the United States, entering the $22 billion U.S. prescription market for major depressive disorder.
"We have successfully expanded and extended our lending agreement with Eclipse to provide added working capital flexibility as we prepare for the EXXUA launch later this calendar year," said Josh Disbrow, Chief Executive Officer of Aytu, in the press release.
The company said it will provide additional details regarding the terms and conditions of the agreement in an upcoming Current Report on Form 8-K to be filed with the Securities and Exchange Commission.
Aytu BioPharma focuses on developing medicines for complex central nervous system diseases. Its product portfolio includes treatments for major depressive disorder and attention deficit hyperactivity disorder.
In other recent news, Aytu BioPharma reported a notable financial performance for Q3 FY2025, with net revenue increasing by 32% year-over-year to $18.5 million. The company achieved a net income of $4 million, marking a significant turnaround from a prior-year loss. Revenue growth was primarily driven by their ADHD and pediatric portfolios, which saw increases of 25% and 77%, respectively. Additionally, Aytu BioPharma has secured exclusive rights to commercialize EXXUA™, a new antidepressant for major depressive disorder, in the U.S. market. This strategic move is expected to be a significant growth driver for the company, with plans to launch the drug in the fourth quarter of 2025. The deal with Fabre-Kramer Pharmaceuticals includes various financial terms such as upfront payments and royalties. In light of these developments, Aytu BioPharma is actively exploring strategic acquisitions to further enhance its product lines. The company's CEO, Josh Disbrow, emphasized the importance of acquisitions that align with their existing capabilities and therapeutic focus.
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