- In December 2012 SWK acquired a limited partnership interest in Holmdel Pharmaceuticals
- Holmdel subsequently acquired the U.S. marketing authorization rights to InnoPran XL, a non-selective beta blocker using dosing technology to provide maximum active ingredient blood levels that coincide with the body’s natural circadian rhythm
- SWK partnered with an accomplished operator that handled marketing, distribution, and reimbursement functions
- SWK and a financial partner contributed $13mm with the operating partner contributing $2mm in cash, an additional product’s cash flows, and operating expertise.
- SWK’s unique structure allows the operator to increase its share of the economics from roughly 10% to 55% upon achieving return milestones
- InnoPran XL sales increased from $5mm in 2012 to $14mm in 2015
- By mid-2014 the first milestone was achieved, more than doubling the operator’s economic ownership
- In 1Q17, InnoPran XL was sold to ANI Pharmaceuticals with SWK achieving a 3.5x cash-on-cash return while our operating partner achieved a more substantial return
