Nuvo Pharmaceuticals acquires head lice removal treatment
Healthcare firm Nuvo Pharmaceuticals has announced the acquisition of Resultz (isopropyl myristate) from US company Piedmont Pharmaceuticals.
The deal, worth US$7 million, sees Canada-based Nuvo take over existing royalty streams in Canada, Australia, Russia and Israel, and all IP rights in the US.
The head lice removal treatment, which can be bought over the counter, is available in several other countries, including France, Spain, Portugal and the UK, through existing licence agreements and partners, which will be assumed by Nuvo.
According to Nuvo, net sales of Resultz in the royalty markets for the 12 months ending September 2017 were $16 million, with the drug generating royalty payments of $1.5 million.
While Resultz has been approved for sale under its CE mark as a class one medical device, it is not available in all of the EU markets, including Germany, Italy and Greece.
The treatment is also unavailable in most other international markets, including the Middle East, Africa, Latin America and Asia Pacific, although it is available in Japan and Australia.
However, Nuvo hopes that the CE mark for Resultz will help “facilitate class one medical device registration procedures via local partners”.
Speaking of the acquisition, Jesse Ledger, president and CEO of Nuvo, said: “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.”
He continued that Resultz has broad IP protection, generates royalty revenue, “provides significant opportunity for global geographic expansion and revenue growth, and can be manufactured in our Varennes, Quebec facility”.
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