Nutriband Inc. (NASDAQ: NTRB) has entered into an agreement to sell a 90% interest in its subsidiary Pocono Pharmaceutical to EarthVision Bio for $5 million, retaining a 10% ownership stake post-transaction. The company stated that the proceeds from this sale will be allocated to support the continued development of AVERSA Fentanyl, a transdermal opioid patch 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, with estimated annual U.S. sales ranging from $80 million to $200 million.
This strategic divestment underscores Nutriband's focused commitment to its core development pipeline, particularly its AVERSA technology platform. The AVERSA technology can be integrated into any transdermal patch to prevent the abuse, misuse, diversion, and accidental exposure of drugs with abuse potential. By channeling resources from the Pocono Pharmaceutical sale into AVERSA Fentanyl, Nutriband is prioritizing a product that addresses a critical public health issue: the opioid crisis. The development of abuse-deterrent formulations is a key public health strategy to combat prescription drug misuse, which remains a significant contributor to overdose deaths nationwide.
The transaction's importance lies in its potential impact on both the pharmaceutical industry and patient safety. If successfully developed and approved, AVERSA Fentanyl could set a new standard for transdermal opioid delivery, offering a safer alternative to existing patches that are vulnerable to tampering and abuse. This aligns with regulatory and public health efforts to promote safer opioid prescribing practices. For investors and stakeholders, the move signals a streamlined operational focus, with capital reallocated to a high-potential, proprietary asset. The company's broader corporate communications and updates are accessible through its dedicated newsroom at https://ibn.fm/NTRB.
Financially, the $5 million infusion provides non-dilutive capital to advance a late-stage development program, reducing reliance on equity financing and potentially accelerating the path to market. The retained 10% interest in Pocono Pharmaceutical allows Nutriband to maintain a stake in the subsidiary's future while concentrating efforts on its flagship product. The estimated sales projection of $80 million to $200 million annually highlights the substantial market opportunity for an abuse-deterrent fentanyl patch, given the prevalence of chronic pain management and the ongoing need for safer opioid options. As the company progresses, stakeholders can monitor developments via its official website at www.nutriband.com.
