Nutriband Inc. Sells Majority Stake in Pocono Pharmaceutical to Fund Abuse-Deterrent Fentanyl Patch Development

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, while 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 engineered to deter abuse, misuse, and accidental exposure. Nutriband believes this product has the potential to become the world's first abuse-deterrent fentanyl patch and could generate estimated annual U.S. sales ranging from $80 million to $200 million.

The company's lead product under development incorporates its proprietary AVERSA abuse-deterrent technology, which is designed to be integrated into any transdermal patch to prevent the abuse, misuse, diversion, and accidental exposure of drugs with abuse potential. This strategic divestiture allows Nutriband to sharpen its focus and resources on this high-priority pharmaceutical innovation. Additional corporate information and updates relating to NTRB are available in the company's newsroom at https://ibn.fm/NTRB.

This transaction underscores a significant corporate realignment aimed at accelerating the path to market for a critical medical product. The opioid crisis remains a severe public health challenge, with the Centers for Disease Control and Prevention reporting tens of thousands of overdose deaths annually involving synthetic opioids like fentanyl. An abuse-deterrent formulation represents a meaningful technological advancement in pain management, potentially offering a safer option for patients requiring potent analgesia while addressing risks of diversion and misuse.

The financial infusion from the Pocono Pharmaceutical sale provides non-dilutive capital to advance the clinical and regulatory milestones necessary for the AVERSA Fentanyl patch. Success in this arena could not only create substantial shareholder value but also contribute to public health efforts to curb opioid-related harm. The retained 10% interest in Pocono Pharmaceutical allows Nutriband to maintain a strategic foothold and potentially benefit from the subsidiary's future performance under EarthVision Bio's ownership.