Eton Pharmaceuticals, Inc. 8-K

What Happened
Eton Pharmaceuticals announced on May 18, 2026 that it entered into a supply and distribution agreement with an affiliate of Knight Therapeutics to commercialize IMPAVIDO® (miltefosine) oral capsules in the United States. The agreement gives Eton exclusive U.S. commercialization rights beginning September 26, 2026, with an initial term through March 31, 2032 and options to renew up to ten additional one‑year terms under certain conditions. A press release dated May 19, 2026 is attached as Exhibit 99.1 to the 8‑K.

Key Details

• Fixed fees totaling $4.25 million payable during the initial term: $125,000 (7/1/2026); $1,250,000 (4/1/2027); $1,000,000 (6/30/2028); $1,000,000 (6/30/2029); $875,000 (6/30/2030).
• Additional milestone payments of up to $4.0 million tied to cumulative net sales: $1.0M each when cumulative U.S. net sales reach $50M, $100M, $150M and $200M.
• Revenue share to Supplier: 55% of net sales up to $7.0M per calendar year, and 50% of net sales above $7.0M per calendar year.
• Responsibilities: Supplier covers product costs and regulatory expenses; Eton responsible for sales and marketing. 2025 U.S. sales of IMPAVIDO were about $8.1M (Symphony Health data).

Why It Matters
This deal gives Eton an immediate commercial product (an FDA‑approved orphan drug for leishmaniasis) with defined payment obligations and a significant revenue‑share arrangement. For investors, that means potential near‑term revenue contribution starting when exclusivity begins (9/26/2026) but also ongoing profit sharing and fixed cash outlays during the initial term. The agreement shifts product/manufacturing risk and regulatory costs to the Supplier while placing commercialization and marketing responsibilities — and associated expenses — on Eton.