Case Study: Holmdel Pharmaceuticals / Innopran XL (Product Purchase)

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