Nuvo Pharmaceuticals (Ireland) Limited acquires U.S. product rights to Resultz from Piedmont Pharmaceuticals LLC.
Nuvo Pharmaceuticals Inc., a commercial healthcare company with a portfolio of commercial products and pharmaceutical manufacturing capabilities, announced that its wholly owned subsidiary, Nuvo Pharmaceuticals (Ireland) Limited has acquired the U.S. rights to Resultz (50% isopropyl myristate, 50% cyclomethicone D5 topical solution lice and egg removal kit) from Piedmont Pharmaceuticals LLC (Piedmont).
The acquisition includes all U.S. product and intellectual property rights and is a complementary follow-on to Nuvo’s acquisition of the global, ex-U.S. Resultz product rights announced on January 2, 2018. Nuvo now owns all Resultz product and intellectual property rights throughout the world.
Resultz is a commercial-stage, clinically proven, safe, non-pesticide, over-the-counter (OTC) treatment for head lice. Resultz was cleared as a Class 1 medical device by the U.S. Food and Drug Administration (FDA) in May 2017 and has not yet been commercially launched in the U.S.
The topical head lice market in the U.S. was valued at $255 million in 2016, inclusive of both prescription and OTC products. Resultz, with its 5-minute application time, is positioned to enter the market. Nuvo anticipates commercializing Resultz in the U.S. through a licensing partner and has already initiated discussions with potential licensees.
With this transaction, Nuvo gains global control of the Resultz franchise and adds an additional FDA cleared U.S. product to its growing commercial product portfolio. Alongside existing manufacturing partners, Nuvo will be able to produce Resultz for the U.S. market at its Varennes, Québec manufacturing facility.
Under the terms of the agreement, $1.5 million was paid to Piedmont on close using existing cash on hand. The transaction includes a single-digit royalty payable by Nuvo Ireland on net sales through 2034.
Nuvo, through its Nuvo Ireland subsidiary, has also obtained a right of first refusal to license or acquire certain related assets from Piedmont targeting other human indications. Nuvo said it now has cash and short-term investments of approximately $8.3 million and no debt with an unused $6.0 million line of credit, which positions the company to acquire additional products and businesses from existing resources.
Stifel, Nicolaus & Company, Incorporated acted as exclusive financial advisor to Piedmont Pharmaceuticals LLC in the transaction.
