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Imprimis spins off Eton to challenge pricy pipelines of Mallinckrodt, Endo

June 20, 2017

In response to a call for heightened drug competition by FDA Commissioner Scott Gottlieb, Imprimis Pharmaceuticals Inc IMMY 6.05% has committed to introducingcheaper alternatives to some of the industry’s priciest products.

Now, in what CEO Mark Baum said is the company’s “most potent effort to develop pharmaceutical competition,” it’s birthing a new force to continue fighting the good fight.

Imprimis announced Tuesday that its newly spun-off entity, Eton Pharmaceuticals, entered a definitive securities purchase agreement to raise $20 million in an initial financing round.

Eton will develop and complete clinical programs for two compounds acquired from Imprimis, drugs that will rival Mallinckrodt PLC MNK 0.76%’s H.P. Acthar gel and Endo International plc ENDP 0.09%’s Xiaflex.

Synthetic corticotropin will take on HP Acthar Gel, a $38,000 treatment for indications such as multiple sclerosis, infantile spasms and lupus. Injectable pentoxifylline will challenge Xiaflex, a $70,000 non-curable treatment for Peyronie’s Disease among men.

Apart from its Imprimis inheritance, Eton will also manage two Drug Efficacy Study Implementation programs acuired from outside firms and more broadly focus on developing and commercializing proprietary injectable drugs.

The company will be financed and managed independently from Imprimis, which will own a 27-percent stake in Eton and royalty interest in its former drug pipeline. Eton’s board of directors will include Chuck Casamento, former CEO of Questcor, which initially owned Acthar and subsequently sold it to Mallinckrodt.


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