Nuvo Pharma Acquires Global Ex-U.S. Product Rights and Existing Royalty Streams to Resultz From Piedmont Pharma
- US$7.0 million purchase price funded from existing cash -
MISSISSAUGA, ON, Jan. 2, 2018 /PRNewswire/ - Nuvo Pharmaceuticals Inc. (TSX: NRI; OTCQX: NRIFF), a commercial healthcare company with a portfolio of commercial products and pharmaceutical manufacturing capabilities, today announced it has acquired the global, ex-U.S. (the Territory) rights to Resultz® (50% isopropyl myristate, 50% cyclomethicone D5 topical solution lice and egg removal kit) from Piedmont Pharmaceuticals. The transaction includes existing royalty streams in the Royalty Markets (as defined below) and all product and intellectual property (IP) rights in the Territory.
Resultz is a commercial-stage, best-in-class, clinically proven, safe, non-pesticide, over-the-counter (OTC) treatment for head lice. This market-leading product is currently sold in several European markets, including France, Spain, Portugal, Belgium, Ireland and the United Kingdom, as well as Canada, Russia, Australia and Israel (collectively the Royalty Markets), through a network of existing license agreements and partners that will be assumed by Nuvo. Aggregate net sales of Resultz in the Royalty Markets, for the twelve months ending September 2017, were approximately US$16.0 million generating royalty payments of approximately US$1.5 million. Resultz is currently approved for sale under its European Conformity (CE) mark as a class 1 medical device, but not yet partnered or launched in all remaining E.U. territories, including the key markets of Germany, Italy, the Netherlands, Scandinavia and Greece. The current head lice market in the remaining E.U. territories was valued at approximately US$150 million in 2016. Resultz has not been partnered or approved in most rest of world markets, including the Middle East and Africa, Latin America and Asia Pacific (outside of Japan and Australia). However, the European CE mark is recognized in many of these markets and may facilitate class 1 medical device registration procedures via local partners. With a global head lice prevalence of approximately 6%, the market opportunity for Resultz in all non-Royalty Markets is attractive and growing. This transaction is immediately accretive and provides Nuvo with an additional global product that, alongside existing manufacturing partners, can be produced at Nuvo's Varennes, Québec manufacturing site.
"This is an exciting day for Nuvo," said Jesse Ledger, Nuvo's President & CEO. "The addition of the Resultz brand to our global product portfolio is an example of the disciplined transactions we are pursuing to make Nuvo a more diversified and profitable company. Resultz checks all of the boxes for an ideal new Nuvo product: it is approved, has commercialized-generating royalty revenue, broad global IP protection, provides significant opportunity for global geographic expansion and revenue growth and can be manufactured in our Varennes, Québec facility."
Purchase Agreement Details
Stifel, Nicolaus & Company, Incorporated acted as exclusive financial advisor to Piedmont Pharmaceuticals LLC in this transaction.
About Piedmont Pharmaceuticals LLC
About Nuvo Pharmaceuticals Inc.
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SOURCE Nuvo Pharmaceuticals Inc.
Company Codes: OTC-QX:NRIFF, Toronto:NRI, OTC-PINK:NRIFF