Business
Aytu BioPharma Announces Sale of Consumer Health Business Following Wind Down of Consumer Health Operations
Consumer Health Wind Down and Sale Maximizes Shareholder Value as Company Focuses on Rx SegmentEliminates Materially All Remaining Expenses Associated with
About this update from Aytu Biopharma, Inc.
[{"type":"text","content":"Consumer Health Wind Down and Sale Maximizes Shareholder Value as Company Focuses on Rx SegmentEliminates Materially All Remaining Expenses Associated with the Consumer Health BusinessProvides 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 increme...