Aytu BioScience Receives $5M Investment To Further Expansion Plans, Enter 'Cough And Cold' Market

Micro-cap pharmaceutical company Aytu BioScience, Inc. (NASDAQ: AYTU) is responsible for global commercialization of products to treat low testosterone, insomnia and male infertility.

What Happened

On Monday, Aytu BioScience revealed its entry into the $3 billion cough and cold market, through its exclusive license of Tuzistra XR. This antitussive is the only FDA-approved treatment of its kind, as it is codeine-based and extended-release, according to the press release.

Tuzistra XR and an additional complimentary product will both be marketed in the U.S., pending FDA-approval.

“Tuzistra XR is expected to generate revenue this year after launching promptly this cough and cold season. Tuzistra XR generated more than 40,000 prescriptions in 2017," the release said.

Why It’s Important

This treatment will aid in the company’s expansion in quite a monumental way.

“This market is dominated by short-acting treatments, which require dosing 4-6 times a day. Tuzistra XR was developed using Tris Pharma's liquid sustained release technology, LiquiXR®, which allows for extended drug delivery throughout a 12-hour dosing period.”

What’s Next

The company will enter into a strategic financing plan with institutional health care investor, Armistice Capital, LLC. Within the arrangement, the investor will provide up to $5 million in order to fund growth and the launch of the Tuzistra products.

Aytu shares were trading higher by 11.4 percent to $1.27 at time of publication.

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