Veru (NASDAQ:VERU) stock is getting a boost on Friday after the company revealed plans to sell its ENTADFI capsule business.
That sale has the company agreeing to sell the business for $20 million to Blue Water Vaccines (NASDAQ:BWV). That comes in the form of an initial $6 million payment, an additional $4 million payment in 2023 and $10 million in installments in 2024.
There’s also potential for another $80 million in sales milestones connected to the performance of ENTADFI. ENTADFI is the company’s treatment for benign prostatic hyperplasia (BPH).
Mitchell Steiner, Chairman, President and CEO of Veru, said the following about the sale:
“The sale of ENTADFI and revenues from our FC2 business provide Veru with financial flexibility and resources to advance our important drug candidates, enobosarm for 2nd line AR+ ER+ HER2- metastatic breast cancer and sabizabulin for SARS-CoV-2 viral ARDS, that could yield Phase 3 clinical trial data in 2024.”
VERU Stock Movement Today
With this news, shares of VERU stock are seeing heavy trading on Friday. As of this writing, more than 4 million shares have been traded. To put that in perspective, the company’s daily average trading volume is closer to 2.9 million shares.
VERU stock is up 2.5% as of Friday morning.
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On the date of publication, William White did not hold (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.