Osmotica Pharmaceuticals plc Announces Conclusion of

Osmotica will receive an upfront payment of $ 110 million with the potential to receive additional milestone payments of up to $ 60 million
Alora will acquire manufacturing operations in Marietta, Georgia, in addition to its legacy products
Osmotica will retain the ophthalmology and aesthetics-focused business of RVL Pharmaceuticals, led by its flagship product UPNEEQ®
Osmotica will also keep arbaclofen prolonged-release tablets (“ER”) in development to treat spasticity in multiple sclerosis (“MS”)
Conference call at 8:30 a.m. ET

BRIDGEWATER, NJ, June 25, 2021 (GLOBE NEWSWIRE) – Osmotica Pharmaceuticals, plc (Nasdaq: OSMT) (“Osmotica” or the “Company”), a fully integrated biopharmaceutical company, today announced the completion of a definitive purchase and sale agreement with Alora Pharmaceuticals, LLC (“Alora”), under which Alora is acquiring Osmotica’s legacy product portfolio and its Marietta, Georgia manufacturing facility for up to $ 170 million.

“Today’s announcement is a significant step in transforming our business and aligns with our strategy of building a portfolio of growth stocks in ophthalmic aesthetics,” said Brian Markison, CEO of Osmotica Pharmaceuticals. “The legacy business was an important part of our development and we would like to acknowledge the excellence of our people as they stayed focused throughout this process. The proceeds from the sale will be used to reduce a significant portion of our outstanding debt and enable us to accelerate the commercialization efforts of our flagship product UPNEEQ. Since the launch of UPNEEQ, our trust in the brand has grown and we believe this is the right time to continue focusing on this enormous asset.

“Alora Pharmaceuticals is a great home for our legacy business because of its diverse portfolio and commitment to high quality branded and generic products,” added Markison.

“Alora Pharmaceuticals is excited to welcome the Osmotica team to our growing company. This acquisition will immediately strengthen our platform for generic and branded product lines and contribute to the long-term growth of our contract research and development and manufacturing capabilities, ”said Art Deas, CEO of Alora.

The boards of directors of Osmotica and Alora have approved the transaction, which is expected to close in the third quarter of 2021.

Barclays Bank PLC and Jefferies LLC are serving as financial advisor and Ropes & Gray LLP is serving as legal advisor to Osmotica. TAP Advisors is acting as exclusive financial advisor and Nelson Mullins Riley & Scarborough LLP is acting as legal advisor to Alora on the transaction.

About Osmotica Pharmaceuticals
Osmotica Pharmaceuticals plc (Nasdaq: OSMT) is a fully integrated biopharmaceutical company focused on developing and commercializing specialty products that target markets with underserved patient populations. RVL Pharmaceuticals, Inc. is the company’s ophthalmic subsidiary supporting UPNEEQ®. Vertical Pharmaceuticals, LLC represents the company’s diversified portfolio of brands and Trigen Laboratories, LLC represents the company’s non-promoted products, including complex generic formulations.

Osmotica has offices in the United States and Hungary.

About Alora Pharmaceuticals
Alora is a specialty pharmaceutical company based in Alpharetta, Georgia that develops, manufactures, and markets a growing portfolio of prescription products. Alora is the parent company of three different subsidiaries, Avion Pharmaceuticals, LLC, Acella Pharmaceuticals, LLC and Sovereign Pharmaceuticals. Avion Pharmaceuticals’ product expertise spans the spectrum of lifestyle needs across a woman’s entire life cycle, from pregnancy to menopause, and is now moving into new therapeutic specialty disease categories. Acella Pharmaceuticals’ diverse portfolio helps patients with a wide variety of health needs. Acella’s product line supports the areas of endocrinology, dermatology, urology, hematology, nutritional supplements and cough / cold. Ultimately, our growing production capacities and know-how are provided by Sovereign Pharmaceuticals.

Forward-Looking Statements
This press release contains statements that express the Company’s opinions, expectations, beliefs, plans, goals, beliefs or projections about future events or future results and therefore are or may be considered “forward-looking statements”. The company’s actual results could differ materially from those anticipated in these forward-looking statements, which can generally be identified through the use of forward-looking terminology, including the terms “believes,” “expects,” “may,” “will,” “should “,” Seeks “,” projects “,” approximately “,” intends “,” planet “,” estimates “or” anticipates “or their negatives or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They contain statements about the Company’s intentions, beliefs or current expectations, among other things, with respect to the completion of the Transaction on the terms described herein, including receipt of the prepayment and the additional milestone payments; use the proceeds from the sale of the company’s legacy business to pay off existing debt and accelerate UPNEEQ’s commercial expansion; the company’s strategy in relation to its portfolio of growth assets in eye aesthetics; and the expected time of completion of the transaction. By their very nature, forward-looking statements involve risks and uncertainties as they relate to events and depend on circumstances that may or may not occur in the future. We may not achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in our forward-looking statements. Important factors that could cause actual results and events to differ materially from those expressed in the forward-looking statements include the following: the possibility that one of the various conditions for the closing of the Transaction may not be satisfied; the parties cannot fulfill their obligations under the purchase and sale agreement or an event, change or other circumstance may occur that could lead to the termination of the purchase and sale agreement; the Company’s intended use of the proceeds may change due to unforeseen factors; the Transaction may not close on schedule or at all due to unforeseen factors; the company’s ability to develop or commercialize new products successfully, in a timely or cost-effective manner; Failures or delays in clinical trials or other delays in obtaining regulatory approval or in commencing product sales for new products; the effects of legal proceedings; the company’s ability to service its substantial debts; the company’s ability to raise additional capital; the effects of competition from both branded and generic companies; any interruption in the manufacturing facility, in the Company’s warehouses, or in facilities operated by third parties that the Company relies on for its products; the company’s dependence on our major customers; the company’s ability to develop and maintain its sales capabilities; the impact of litigation related to allegations of intellectual property infringement; any changes in coverage and reimbursement rates for its products by government agencies and other third party payers due to healthcare reform or other reasons; the impact of changes in the extensive government regulations to which the company is exposed; Manufacturing or quality control issues that the company may face; and other risks and uncertainties more fully described in the “Risk Factors” section of the company’s Annual Report on Form 10-K for the year ended December 31, 2020 and in other filings by the company with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this publication and the company undertakes no obligation to publicly update or revise them, whether as a result of new information, future events or otherwise, except as required by law.

Investor and media relations for Osmotica Pharmaceuticals plc

Lisa M. Wilson
In-Site Communication, Inc.
T: 212-452-2793
E: lwilson@insitecony.com