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 sale are earmarked to support the continued development of its lead product candidate, AVERSA Fentanyl.
This strategic divestiture underscores Nutriband's intensified focus on its core transdermal pharmaceutical development pipeline. The AVERSA Fentanyl patch is designed as an abuse-deterrent transdermal opioid patch intended to deter abuse, misuse, and accidental exposure. The company believes this product has the potential to become the world's first abuse-deterrent fentanyl patch. According to Nutriband's estimates, the product could generate annual U.S. sales in the range of $80 million to $200 million upon successful development and market entry.
The importance of this development lies in the ongoing public health crisis surrounding opioid abuse. Transdermal fentanyl patches are a recognized source of misuse, where the potent opioid gel can be extracted for unintended use. The AVERSA technology, which Nutriband aims to incorporate into this patch, is designed to prevent such extraction and misuse. As detailed by the company, the AVERSA technology can be incorporated into any transdermal patch to prevent the abuse, diversion, and accidental exposure of drugs with abuse potential. Further information on the company's technology and developments can be found on its corporate website at https://www.nutriband.com.
The transaction's impact extends to Nutriband's financial strategy and operational focus. By liquidating a majority stake in a non-core asset, the company secures immediate capital to fund a specialized, high-potential product addressing a critical unmet medical and safety need. This move allows Nutriband to concentrate resources on advancing AVERSA Fentanyl through the development process without the operational burden of the Pocono Pharmaceutical subsidiary. The retained 10% interest provides Nutriband with a continued, albeit reduced, financial stake in the divested business's future performance.
For the pharmaceutical industry and public health stakeholders, the advancement of abuse-deterrent formulations represents a key frontier in combating the opioid epidemic. A successful abuse-deterrent fentanyl patch could offer a safer option for patients with severe, chronic pain who require around-the-clock opioid analgesia, while potentially reducing the risk of diversion and misuse that contributes to overdose deaths. The financial commitment signaled by this asset sale highlights Nutriband's confidence in the product's market potential and societal value. Investors and industry observers can monitor further news and updates relating to NTRB through the company's dedicated newsroom at https://ibn.fm/NTRB.
