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Blue Water (BWV) Up on Acquisition of 6 FDA-Approved Drugs

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Blue Water Biotech  announced the signing of an Asset Purchase Agreement with WraSer, LLC and Xspire Pharma, LLC. Shares of BWV surged 62% on Jun 14, following the news.

The agreement entails the acquisition of six FDA-approved assets across various medical indications, including cardiology, otic infections and pain management.

It also includes patents for a medication called Zontivity. This drug was approved by the FDA in 2014 and is used to lower the risk of heart problems in patients who have had a heart attack or a condition called peripheral arterial disease.

The aforementioned purchase also involves licenses to sell and distribute two types of antibiotic ear products — Otovel and Cetraxal. These, along with their generic versions, are currently being sold by WraSer.

Otovel is used to treat ear infections (acute otitis media) in children over six months old who have a small tube in their eardrums. Cetraxal is an otic solution of ciprofloxacin ear drops, used to treat swimmers' ears (otitis externa) in children with normal eardrums.

Per the deal, Blue Water will obtain the rights to sell and distribute the drug Conjupri, which is used to treat hypertension and lower blood pressure.

Additionally, the company will buy two pain medications — Trezix and Nalfon. Trezix, which contains acetaminophen, caffeine and dihydrocodeine bitartrate, is used for moderate to moderately severe pain when other non-opioid options are not enough. Nalfon, which contains fenoprofen calcium, provides relief from mild-to-moderate pain in adults. It also helps ease the symptoms of rheumatoid arthritis and osteoarthritis.

Shares of BlueWater have risen 16.3% year to date against the industry’s 7.1% decline.

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Per the agreement, BWV will buy the WraSer assets for a total of $8.5 million, which will be paid in three parts. The first payment will be made when the agreement is signed, the second when the deal is finalized and the third within a year of the deal’s closure. On the closing date, WraSer will receive $1 million restricted shares of Blue Water's common stock. 

The completion of the transaction depends on the usual conditions for closing a deal and WraSer's parent company, Legacy-Xspire Holdings, LLC, providing audited financial statements to Blue Water.

The purchase of the above assets will enable Blue Water to advance its existing vaccine pipeline. The company has been actively developing BWV-201 as a vaccine to prevent acute otitis media. The experience and expertise gained through this development process will aid in the future commercialization and marketing of Otovel.

Blue Water also recently purchased Entadfi from Veru Inc. (VERU - Free Report) . The drug is an approved treatment for benign prostatic hyperplasia. The deal with Veru was closed for a total consideration of $100 million. These acquisitions mark a milestone in BWV’s journey toward becoming a commercial-stage biopharmaceutical company.

In order to support its transition into a commercial-stage company, Blue Water has made significant efforts in building its corporate infrastructure. It hired skilled professionals with extensive experience in commercial operations to maximize sales of all acquired products.

Zacks Rank and Other Stocks to Consider

Blue Water currently carries a Zacks Rank #2 (Buy).

A couple of other top-ranked stocks in the biotech sector are Akero Therapeutics (AKRO - Free Report) and ADMA Biologics, Inc. (ADMA - Free Report) , both carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Loss per share estimate for Akero Therapeutics has narrowed from $3.46 to $2.80 for 2023 in the past 90 days. Shares of Akero Therapeutics have risen 0.7% year to date.

AKRO’s earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 7.96%. 

Loss per share estimate for ADMA Biologics has narrowed from 19 cents to 9 cents for 2023 in the past 90 days. Shares of ADMA Biologics have rallied 0.3% year to date.

ADMA’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.13%.

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