• Decision to focus on delivering core business opportunities
25 February 2015, Melbourne: Australian drug delivery company, Phosphagenics Limited (ASX: POH; OTCQX: PPGNY), has put its branded cosmetics division, BioElixia®, up for sale to allow resources to be refocused on the Company’s core areas of strength.
Phosphagenics has recently received a number of expressions of interest in purchasing its range of Personal Care products sold under the BioElixia® brand. The BioElixia® brand and product range, which are formulated with the proprietary TPM® technology, has been growing over the last few years and has the capacity to provide potential purchasers with an opportunity to acquire a brand with an established distribution network and product differentiation based on the TPM® technology.
“Whilst we have demonstrated that the addition of TPM® has real potential across a large number of areas, it is essential for a relatively small company like Phosphagenics to recognise where it can maximise value for shareholders, and apply its precious resources in those areas,” commented Dr Ross Murdoch, CEO. “This decision reflects our commitment to focus on the areas where we believe we can add most value and find experts to maximise shareholder value for the others.”
Chairman, Lawrence Gozlan, added “The brand has a growing following and growing distribution network. It has unique and proprietary differentiation through its TPM® technology, and the potential upside of the association with our other TPM® based clinical assets. We are now focused on ensuring that the ultimate sales arrangement recognises the unique value of the brand and provides the opportunity for shareholder upside.”
The sale only relates to Phosphagenics own brand and associated products. The Company’s ongoing strategy for personal care is to retain the rights to license TPM® for use in cosmetics/cosmeceuticals under certain conditions. The arrangements with GNC have been terminated and the Company will likely change its arrangements with Korean Drug Company as it no longer intends to manufacture products. Licensing arrangements with Le Metiér de Beauté remain unchanged.
ENDS
Enquiries
Anna Legg or David Segal
Phosphagenics Limited
+61 3 9565 1119
About Phosphagenics
Phosphagenics Limited is a drug delivery company that is commercialising various products within the pharmaceutical, cosmetics and animal health sectors, using its proprietary drug delivery system called TPM® (Targeted Penetration Matrix). TPM® is a patient friendly and cost effective system, based on Vitamin E, that enhances the topical or transdermal delivery of active molecules. The lead products advancing through clinical trials are oxymorphone and oxycodone patches for the relief of chronic pain.
Phosphagenics’ shares are listed on the Australian Securities Exchange (POH) and its ADR – Level 1 program in the US is with The Bank of New York Mellon (PPGNY).
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