Innovus Pharmaceuticals, Inc., announced the closing of the acquisition for substantially all of the assets of Beyond Human, for a cash purchase price of $630,000.
In order to finance the acquisition, the company entered into a secured promissory note with SBI Investments, LLC 2014-1 for $550,000. Pursuant to the note, the company agreed to repay SBI in 24 equal monthly payments from the gross revenues that the company receives from the Beyond Human products. The note is secured by a first priority lien in favor of SBI on the company’s Beyond Human assets.
Beyond Human is best known for its natural Testosterone Booster supplement Beyond T Human®, and its natural Human Growth Agent HGA® among other products. According to Beyond Human, its sales, which are concentrated in the U.S., have been growing at a rate of just under 50 percent per year for the last few years. In 2014, Beyond Human had over $1.3 million in gross revenues and approximately $300,000 in net profits and in 2015 it had over $2.2 million in gross revenues and approximately $400,000 in net profit.
The company believes that the immediate benefits to Innovus Pharma of the Beyond Human transaction is:
- Triple the company’s aggregate annual revenues to close to $4.0 million
- Move the company faster to becoming cash flow positive
- The Beyond Human products acquired could generate alone for the company over $3 million in gross revenues and over $600,000 in net profits once fully integrated into the Innovus platform over the next few years
- A total of 6 new Beyond Human products acquired that can be sold through the company’s numerous international distributors
- Leverage Beyond Human’s on-line platform and large database of thousands of customers that would assist the Company in expanding sales of its current products such as EjectDelay®, Sensum+®, and Vesele® among others
According to the Bloomberg Business and the Statista Portal, the U.S. testosterone replacement market is very large and has grown from $1.6 billion in 2011 to $2.4 billion in 2013 and is expected to hit $3.8 billion in 2018 with products from companies such as AbbVie, Inc., Eli Lilly & Co., and others. Testosterone treatments are provided through gels, patches and injections. According to the National Institutes of Health, in 2016 about 5 million American men don’t produce enough of the hormone.
“The closing of the acquisition of the Beyond Human assets marks a turning point in Innovus Pharma revenue scale-up and we believe it should help the company move into a cash flow positive situation followed by profitability very quickly,” said Dr. Bassam Damaj, President and Chief Executive Officer of Innovus Pharma.