Eton Pharmaceuticals (NASDAQ:ETON) stock is on the rise Monday as investors react to news of approval from the U.S. Food and Drug Administration (FDA) for Zonisade.
Zonisade is Eton Pharmaceuticals’ oral treatment for patients experiencing seizures. Approval of the drug will bring new funds to the company through its agreement with Azurity Pharmaceuticals.
Eton Pharmaceuticals signed an agreement with Azurity Pharmaceuticals last year that covered several drugs. Zonisade was among them. This agreement has Azurity Pharmaceuticals handling the commercialization of Zonisade with no marketing expenses for Eton Pharmaceuticals.
Also part of that agreement are payments to Eton Pharmaceuticals. That includes a $5 million payment on launch, royalty payments, and a potential for up to $15 million in commercial milestone payments from sales.
Sean Brynjelsen, CEO of Eton Pharmaceuticals, said the following in a press release.
“We are proud to have another product approval from our team’s development efforts. This is now the eighth product approval that our team has contributed to, and we are excited for Azurity to bring the product to patients. The proceeds from the launch milestone will be used to further grow our rare disease portfolio.”
ETON stock is seeing heavy trading on today’s news. As of this writing, more than 5 million shares of the stock have changed hands. That’s well above its daily average trading volume of about 73,000 shares.
ETON stock is up 11.1% as of Monday morning.
There’s more stock market news to check out below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.