Why Opko Health Shares Are Up After-Hours
Portfolio Pulse from Erica Kollmann
Opko Health Inc (NASDAQ:OPK) shares surged after-hours following the announcement of a $250 million non-dilutive note purchase agreement with HealthCare Royalty (HCRx). The agreement is secured by profit share payments from Pfizer related to NGENLA, a treatment for pediatric growth hormone deficiency. The note bears interest at SOFR plus 7.5% per annum and matures in July 2044. The deal provides Opko with financial flexibility for R&D and potential share repurchases.
July 17, 2024 | 9:31 pm
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Opko Health shares rose 7.07% after-hours following a $250 million non-dilutive note purchase agreement with HealthCare Royalty. The deal is secured by profit share payments from Pfizer related to NGENLA, providing Opko with financial flexibility for R&D and potential share repurchases.
The $250 million non-dilutive note purchase agreement provides Opko Health with significant financial flexibility, which is likely to be viewed positively by investors. The secured nature of the agreement and the potential for future milestone payments from Pfizer further enhance the company's financial stability, leading to a positive short-term impact on the stock price.
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