Eton Pharma falls after co licenses rare disease drug to Spanish company

Shares of drug developer Eton Pharmaceuticals ETON.O fall ~3% to $12.58

ETON says it has out-licensed the non-U.S. commercial rights for its rare disease drug, Increlex, to Spain's Esteve Pharmaceuticals

Esteve will pay Eton 4 million euros ($4.32 million) upfront for the licensing rights lasting up to ten years

ETON will still make the product and sell it to Esteve at a fixed price

Esteve also receives an option to permanently acquire the international rights in the future for up to 6 million euros

Increlex is used to treat growth failure in children and adolescents with severe primary insulin-like growth factor-1 deficiency

Including session move, ETON fell 2.6% YTD

($1 = 0.9267 euros)