Nutriband Inc. (NASDAQ: NTRB) completed a transaction that will see the company divest a 90% interest in its contract‑manufacturing subsidiary, Pocono Pharmaceutical, to EarthVision Bio for $5 million. The deal, which closes on December 31 2025, leaves Nutriband shareholders with a 10% stake in the newly formed entity and provides the company with a cash infusion that will be directed toward its AVERSA Fentanyl abuse‑deterrent transdermal platform.
Pocono Pharmaceutical has posted a challenging financial profile in recent periods. For the nine months ended September 30 2025, the subsidiary generated $1.64 million in revenue while recording a net loss of $7.26 million. In the third quarter alone, revenue fell to $346,000 from $646,000 a year earlier, and the net loss widened to $3.87 million from $1.36 million. These figures illustrate a declining revenue trend and mounting losses that have made the unit a drag on Nutriband’s overall profitability.
The sale proceeds are earmarked for the AVERSA Fentanyl program, which is projected to generate U.S. annual sales of $80 million to $200 million once approved. By freeing up capital and management bandwidth, Nutriband can accelerate clinical development, scale manufacturing through its partnership with Kindeva Drug Delivery, and prepare for an FDA submission. The transaction therefore represents a strategic pivot from a low‑margin contract‑manufacturing model toward a high‑potential, high‑margin pharmaceutical pipeline.
EarthVision Bio, the buyer, is a sustainable‑products company founded by Dr. Gordon Moore and Dr. Hans Franke. While the company’s current financials are not disclosed, the partnership gives Nutriband exposure to a growing sustainable‑products market and preserves a minority ownership that could yield upside if EarthVision expands. The 10% stake also aligns Nutriband’s interests with the long‑term success of the new entity.
Market reaction to the announcement was positive, with analysts noting that the divestiture removes a loss‑making unit and injects cash into a promising drug platform. The transaction also signals Nutriband’s intent to focus on its core innovation, which is expected to drive future growth and improve the company’s risk profile.
In summary, the sale of Pocono Pharmaceutical to EarthVision Bio for $5 million is a material event that realigns Nutriband’s business strategy, provides critical funding for its AVERSA Fentanyl program, and offers a strategic partnership that could enhance long‑term value.
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