Journey Medical Corporation (NASDAQ:DERM) has acquired Molecule Stabilizing Technology (MST) franchise, including Amzeeq (minocycline) topical foam and Zilxi (minocycline) topical foam from VYNE Therapeutics Inc (NASDAQ:VYNE)
- The transaction includes cash payments of $25 million and potential milestones of up to $450 million.
- Approved by the FDA nearly 50 years ago, minocycline is a well-established molecule that has been prescribed, in oral formulation, over 30 million times in the past decade.
- Amzeeq topical foam, 4%, is the first and only topical formulation of minocycline approved by the FDA for inflammatory lesions of non-nodular moderate to severe acne vulgaris in adults and children nine years and older.
- Approved by the FDA in May 2020, Zilxi topical foam, 1.5%, is the first and only topical minocycline treatment for inflammatory lesions due to rosacea in adults.
- Amzeeq and Zilx generated approximately $4 million in net sales in the U.S. in Q3 FY21.
- In conjunction, Journey Medical has expanded its credit agreement with East West Bank to $30.0 million.
- As of September 30, Journey Medical held $21.7 million as cash, cash equivalents, and restricted cash.
- The divestiture aligns with VYNE's strategic plan. The proceeds will be used to fund the development of its immuno-inflammatory pipeline.
- Price Action: DERM shares are down 6.49% at $5.04, and VYNE shares are up 15% at $1.15 during the premarket session on the last check Thursday.
