Nutriband Inc. (NASDAQ: NTRB) has entered into an agreement to sell a 90% ownership interest in its subsidiary Pocono Pharmaceutical to EarthVision Bio for $5 million. Following the transaction, Nutriband will retain a 10% stake in the subsidiary. The company stated that the proceeds from this divestiture will be allocated to support the continued development of its lead product candidate, AVERSA Fentanyl.
AVERSA Fentanyl is a transdermal opioid patch engineered with proprietary technology designed to deter abuse, misuse, and accidental exposure. Nutriband believes this product has the potential to become the world's first abuse-deterrent fentanyl patch. The company's internal estimates project that, if successfully developed and commercialized, the patch could generate annual U.S. sales ranging from $80 million to $200 million. This strategic move underscores Nutriband's focus on its core development pipeline in transdermal pharmaceuticals.
The company's primary business is the development of a portfolio of transdermal pharmaceutical products. Its AVERSA technology platform is central to this strategy, as it can be incorporated into various transdermal patches to prevent the abuse and diversion of drugs with high abuse potential. By divesting the majority of its stake in Pocono Pharmaceutical, Nutriband is channeling resources toward what it views as a higher-potential, innovative medical product addressing a critical public health issue.
The implications of this announcement are significant for multiple stakeholders. For investors, the transaction provides immediate capital to de-risk and advance a key clinical asset without significant dilution. The retained 10% interest allows Nutriband to maintain a potential financial upside from Pocono Pharmaceutical's future operations. For the pharmaceutical industry and public health officials, the advancement of AVERSA Fentanyl represents a potential new tool in combating the opioid crisis. An abuse-deterrent formulation for a potent opioid like fentanyl, if proven effective, could set a new standard for safety in pain management and potentially reduce rates of misuse and overdose.
The development also highlights the strategic decisions smaller biopharmaceutical companies must make to prioritize resources. By selling a non-core asset, Nutriband is betting on the specialized value of its proprietary technology. The success of this strategy hinges on the clinical and regulatory pathway for AVERSA Fentanyl. Further information about the company and its developments can be found in its corporate newsroom at https://ibn.fm/NTRB. The press release detailing this transaction is available at https://ibn.fm/8dyfo, and the company's main website is www.nutriband.com.
