8-K: BioCorRx Pharmaceuticals Acquires Lucemyra, FDA-Approved Opioid Withdrawal Medication, from USWM, LLC

BioCorRx Pharmaceuticals Inc. acquires Lucemyra, an FDA-approved medication for opioid withdrawal, from USWM, LLC to expand its addiction treatment offerings.

Summary

• BioCorRx Pharmaceuticals Inc., a subsidiary of BioCorRx Inc., has acquired Lucemyra (lofexidine), an FDA-approved prescription medication for opioid withdrawal, from USWM, LLC.
• The acquisition aims to expand BioCorRx's addiction treatment offerings and drive revenue growth.
• The purchase price involves USWM, LLC retaining a portion of future sales up to a capped amount instead of a direct cash payment at closing.
• BioCorRx Pharmaceuticals will pay a low single-digit royalty to USWM, LLC, and USWM, LLC will receive shares of common stock and warrants from BioCorRx Inc.
• The warrant is exercisable for two years and has an exercise price of $1.00 per share for 500,000 shares.
• BioCorRx Pharmaceuticals Inc. projects Lucemyra to continue generating meaningful sales.

Sentiment

Score: 8

Explanation: The document presents a positive outlook due to the acquisition of an FDA-approved product, potential revenue growth, and expansion of treatment offerings. The management's comments further reinforce the positive sentiment.

Positives

• BioCorRx expands its addiction treatment offerings with an FDA-approved medication.
• The acquisition is expected to drive revenue growth for BioCorRx Pharmaceuticals Inc.
• Lucemyra provides a critical solution for patients experiencing opioid withdrawal.
• BioCorRx aims to expand Lucemyra's market presence and improve access to opioid withdrawal treatment.
• The acquisition is expected to generate positive cash flow for BioCorRx.

Risks

• The success of the acquisition depends on BioCorRx's ability to integrate Lucemyra into its portfolio and expand its market presence.
• The company is seeking FDA approval for BICX104, an implantable naltrexone pellet, which is subject to regulatory risks.
• The company is dependent on the continued sales of Lucemyra to generate revenue.

Future Outlook

BioCorRx aims to expand Lucemyra's market presence and improve access to opioid withdrawal treatment, while also developing its product pipeline, including BICX104, for regulatory approval.

Management Comments

• Lourdes Felix, CEO, CFO, and Director of BioCorRx Inc., and President, and Chairman of BioCorRx Pharmaceuticals Inc., commented: 'This acquisition represents a significant milestone as we expand our addiction treatment offerings. LUCEMYRA provides a critical solution for patients experiencing opioid withdrawal, and we are excited to integrate it into our portfolio. We believe this strategic move will drive revenue growth and reinforce our commitment to combating the opioid crisis.'
• P. Breckinridge Jones, Sr., CEO of USWM LLC, stated, 'We are proud of the impact LUCEMYRA has had in helping patients manage opioid withdrawal symptoms. Finding the right partner to continue its legacy was important to us, and BioCorRx's deep commitment to addiction treatment makes them an ideal fit. We look forward to working together through this transition and seeing the continued success of LUCEMYRA under BioCorRx's leadership.'

Industry Context

The acquisition addresses the opioid crisis by providing a non-opioid medication for opioid withdrawal, aligning with the industry's focus on developing alternative treatment solutions.

Comparison to Industry Standards

• Lucemyra is the first and only non-opioid medication approved by the FDA to mitigate opioid withdrawal symptoms, setting it apart from other treatments.
• The acquisition of an FDA-approved product provides BioCorRx with a competitive advantage in the addiction treatment market.
• Other companies in the addiction treatment space include Alkermes, Indivior, and Orexo, which offer various medications and therapies for substance use disorders.

Stakeholder Impact

• Shareholders: The acquisition is expected to drive revenue growth and increase shareholder value.
• Patients: Lucemyra provides a critical solution for patients experiencing opioid withdrawal.
• Employees: The acquisition may create new opportunities for employees within BioCorRx Pharmaceuticals Inc.

Next Steps

• BioCorRx Pharmaceuticals Inc. will integrate Lucemyra into its portfolio.
• BioCorRx aims to expand Lucemyra's market presence.
• BioCorRx will continue developing its product pipeline, including BICX104, for regulatory approval.
• The parties will negotiate a definitive distribution services agreement (the DSA) pursuant to which Seller will be engaged as a distributor of the Product on behalf of Buyer for a limited time after the Closing Date until Buyer has established such distribution channels.

Key Dates