Aytu BioPharma Announces Sale of Consumer Health Business Following Wind Down of Consumer Health Operations
Aytu BioPharma (Nasdaq: AYTU) has announced the sale of its Consumer Health business following a strategic wind down of operations. The divestiture includes the e-commerce platform, inventory, consumer brands, intellectual property, contracts, and liabilities. Aytu will receive revenue-based royalty payments on future sales of former Consumer Health products.
The move aligns with Aytu's strategy to focus on its prescription pharmaceutical business and achieve consistent profitability. The company expects this strategic shift, along with the closure of its Grand Prairie, Texas manufacturing site, to significantly enhance operating results and drive stockholder value. The Consumer Health business had been operating at near adjusted EBITDA breakeven during the wind down period.
Aytu BioPharma (Nasdaq: AYTU) ha annunciato la vendita della sua attività di Consumer Health a seguito di una razionalizzazione strategica delle operazioni. La dismissione include la piattaforma di e-commerce, l'inventario, i marchi consumer, la proprietà intellettuale, i contratti e le passività. Aytu riceverà pagamenti di royalty basati sui ricavi sulle vendite future di prodotti precedentemente appartenenti a Consumer Health.
Questa mossa è in linea con la strategia di Aytu di concentrarsi sulla sua attività farmaceutica da prescrizione e raggiungere una redditività costante. L'azienda prevede che questo spostamento strategico, unitamente alla chiusura dello stabilimento di produzione di Grand Prairie, Texas, migliorerà significativamente i risultati operativi e aumenterà il valore per gli azionisti. L'attività di Consumer Health aveva operato nelle vicinanze del pareggio dell'EBITDA rettificato durante il periodo di dismissione.
Aytu BioPharma (Nasdaq: AYTU) ha anunciado la venta de su negocio de Consumer Health tras un cierre estratégico de operaciones. La desinversión incluye la plataforma de comercio electrónico, inventario, marcas de consumo, propiedad intelectual, contratos y pasivos. Aytu recibirá pagos de regalías basados en ingresos por las ventas futuras de productos de Consumer Health.
Este movimiento se alinea con la estrategia de Aytu de enfocarse en su negocio farmacéutico de prescripción y lograr una rentabilidad constante. La empresa espera que este cambio estratégico, junto con el cierre de su planta de fabricación en Grand Prairie, Texas, mejore significativamente los resultados operativos y aumente el valor para los accionistas. El negocio de Consumer Health había estado operando cerca del punto de equilibrio del EBITDA ajustado durante el período de cierre.
Aytu BioPharma (Nasdaq: AYTU)는 전략적 운영 종료에 따른 소비자 건강 사업의 매각을 발표했습니다. 이번 매각에는 전자상거래 플랫폼, 재고, 소비자 브랜드, 지적 재산권, 계약 및 부채가 포함됩니다. Aytu는 이전 소비자 건강 제품의 향후 판매에 대한 수익 기반 로열티 지급을 받게 됩니다.
이번 결정은 Aytu의 처방 약품 사업에 집중하고 일관된 수익성을 달성하려는 전략과 일치합니다. 회사는 이 전략적 전환과 텍사스 그랜드 프레리에서의 제조 시설 폐쇄가 운영 결과를 크게 향상시키고 주주 가치를 높일 것으로 기대하고 있습니다. 소비자 건강 사업은 축소 기간 동안 조정된 EBITDA 손익 분기점 근처에서 운영되고 있었습니다.
Aytu BioPharma (Nasdaq: AYTU) a annoncé la vente de son activité Consumer Health suite à une fermeture stratégique de ses opérations. La cession comprend la plateforme de commerce électronique, les stocks, les marques de consommateurs, la propriété intellectuelle, les contrats et les passifs. Aytu recevra des paiements de redevances basés sur les revenus sur les ventes futures des produits précédemment liés à Consumer Health.
Ce mouvement s'aligne avec la stratégie d'Aytu de se concentrer sur son activité pharmaceutique sur ordonnance et d'atteindre une rentabilité constante. L'entreprise s'attend à ce que ce changement stratégique, associé à la fermeture de son site de fabrication à Grand Prairie, au Texas, améliore considérablement les résultats opérationnels et augmente la valeur pour les actionnaires. L'activité Consumer Health avait fonctionné près de l'équilibre ajusté de l'EBITDA pendant la période de liquidation.
Aytu BioPharma (Nasdaq: AYTU) hat den Verkauf seines Consumer Health-Geschäfts nach einer strategischen Abwicklung der Operationen angekündigt. Die Abtrennung umfasst die E-Commerce-Plattform, Bestände, Verbraucher-Marken, geistiges Eigentum, Verträge und Verbindlichkeiten. Aytu wird umsatzbasierte Lizenzzahlungen auf zukünftige Verkäufe früherer Consumer Health-Produkte erhalten.
Dieser Schritt steht im Einklang mit Ayuts Strategie, sich auf das verschreibungspflichtige Arzneimittelgeschäft zu konzentrieren und eine konstante Rentabilität zu erzielen. Das Unternehmen erwartet, dass dieser strategische Wechsel, zusammen mit der Schließung seines Produktionsstandorts in Grand Prairie, Texas, die Betriebsergebnisse erheblich verbessern und den Aktionärswert steigern wird. Das Consumer Health-Geschäft hatte sich während des Abwicklungszeitraums nahezu am EBITDA-Anpassungsbreakeven bewegt.
- Divestiture of Consumer Health business allows focus on more profitable prescription pharmaceutical segment
- Company to receive future sales-based royalty payments from divested business
- Elimination of expenses associated with Consumer Health business
- Expected significant enhancement of operating results and stockholder value
- Loss of revenue stream from Consumer Health business
- Potential write-offs or losses associated with the divestiture not disclosed
Aytu BioPharma's divestiture of its Consumer Health business is a strategic move to streamline operations and focus on its core prescription pharmaceutical segment. This decision aligns with the company's goal to achieve profitability and generate positive cash flows. The sale eliminates ongoing expenses associated with the Consumer Health unit while providing potential future revenue through royalty payments.
From a financial perspective, this move is likely to improve Aytu's operating margins and cash position. The company operated the Consumer Health business at near adjusted EBITDA breakeven during the wind-down period, suggesting that its removal will have a positive impact on overall profitability. Additionally, the closure of the Grand Prairie manufacturing site should further enhance margins.
Investors should monitor how effectively Aytu redeploys resources towards its Rx brands and whether this translates into accelerated growth and improved financial performance in upcoming quarters.
Aytu's decision to divest its Consumer Health business reflects a broader trend in the pharmaceutical industry where companies are focusing on core competencies and high-margin prescription drugs. This strategic shift allows Aytu to allocate more resources to its Rx segment, potentially enhancing its competitive position in targeted therapeutic areas.
The e-commerce platform and consumer brands acquired by the private company may have more growth potential under new ownership that specializes in direct-to-consumer sales. For Aytu, the royalty agreement on future sales provides a smart way to maintain some upside without the operational burden.
This move signals to the market that Aytu is committed to streamlining its business model and improving its financial health. Investors may view this positively as it demonstrates management's willingness to make tough decisions to drive long-term value.
Consumer Health Wind Down and Sale Maximizes Shareholder Value as Company Focuses on Rx Segment
Eliminates Materially All Remaining Expenses Associated with the Consumer Health Business
Provides for Receipt of Future Sales-Based Royalty Payments
DENVER, CO / ACCESSWIRE / August 6, 2024 / Aytu BioPharma, Inc. (the "Company" or "Aytu") (Nasdaq:AYTU), a pharmaceutical company focused on commercializing novel therapeutics, today announced that following the wind down of operations, it has entered into a definitive agreement to divest its Consumer Health (a/k/a Innovus Pharmaceuticals) business to a private, e-commerce focused company. The divested business encompasses the established e-commerce platform, certain inventory and associated consumer brands, intellectual property, contracts and liabilities, and provides for Aytu to receive revenue-based royalty payments on future sales of former Consumer Health business products.
Aytu finalized the acquisition of Innovus Pharmaceuticals, Inc. in February 2020, and has been operating the Consumer Health business unit as its wholly-owned subsidiary with a small group of dedicated employees. Given the Company's focus on its prescription pharmaceutical business, Aytu undertook a strategic review process and determined that the Consumer Health business was no longer aligned with its strategy and objective to achieve consistent profitability and generate positive cash flows.
Josh Disbrow, Chief Executive Officer of Aytu, stated, "We sincerely appreciate the contributions from the Consumer Health team and thank each of them for their professionalism and focus in winding down the Consumer Health business operations over this past year. With the divestiture of the Consumer Health business unit complete, Aytu is now in a stronger position to focus its resources on the prescription business to maximize the growth and potential of our Rx brands."
Aytu had previously communicated its intent to wind down the Consumer Health business to concentrate on growing its portfolio of prescription medicines. The Company operated the Consumer Health business at near adjusted EBITDA breakeven during the wind down period as it sold through existing inventory and managed down numerous contractual obligations. The savings realized from the strategic shift away from the Consumer Health business, coupled with incremental margin improvements expected from the closure of the Grand Prairie, Texas manufacturing site, is expected to significantly enhance the Company's operating results and drive stockholder value.
About Aytu BioPharma, Inc.
Aytu is a pharmaceutical company focused on commercializing novel therapeutics. The Company's prescription products include Adzenys XR-ODT® (amphetamine) extended-release orally disintegrating tablets (see Full Prescribing Information, including Boxed WARNING) and Cotempla XR-ODT® (methylphenidate) extended-release orally disintegrating tablets (see Full Prescribing Information, including Boxed WARNING) for the treatment of attention deficit hyperactivity disorder (ADHD), Karbinal® ER (carbinoxamine maleate), an extended-release antihistamine suspension indicated to treat numerous allergic conditions, and Poly-Vi-Flor® and Tri-Vi-Flor®, two complementary fluoride-based prescription vitamin product lines available in various formulations for infants and children with fluoride deficiency. To learn more, please visit aytubio.com.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act"). All statements other than statements of historical facts contained in this press release, are forward-looking statements. Forward-looking statements are generally written in the future tense and/or are preceded by words such as "may," "will," "should," "forecast," "could," "expect," "suggest," "believe," "estimate," "continue," "anticipate," "intend," "plan," "potential," or similar words, or the negatives of such terms or other variations on such terms or comparable terminology. All statements other than statements of historical facts contained in this presentation, are forward-looking statements. These statements are predictions and are subject to risks and uncertainties that could cause the actual events or results to differ materially. These risks and uncertainties include, among others, risks associated with: risks relating to gaining market acceptance of the Consumer Health business products, our partners performing their required activities, regulatory and compliance challenges and future events under current and potential future collaborations, and our partner's ability to generate cash flows, successfully commercialize its products directly and through the Consumer Health business's current and future partnerships and generate operating cash flows. We also refer you to the risks described in "Risk Factors" in Part I, Item 1A of our most recent Annual Report on Form 10‑K and in other reports and documents that the Company files with the United States Securities and Exchange Commission.
Contacts for Investors
Mark Oki, Chief Financial Officer
Aytu BioPharma, Inc.
moki@aytubio.com
Robert Blum or Roger Weiss
Lytham Partners
aytu@lythampartners.com
SOURCE: Aytu BioPharma, Inc.
View the original press release on accesswire.com
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