Nutriband Raises $8.4 Million to Fund Clinical Development of Abuse-Deterrent Technology

Nutriband, an Irish pharma firm, raises $8.4M to complete clinical trials for its abuse-deterrent fentanyl patch, which could generate $80-200M in annual sales if approved by the FDA.

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Aqsa Younas Rana
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Nutriband Raises $8.4 Million to Fund Clinical Development of Abuse-Deterrent Technology

Nutriband Raises $8.4 Million to Fund Clinical Development of Abuse-Deterrent Technology

Nutriband Inc. (NASDAQ:NTRB), an Irish-founded pharmaceutical company, has raised $8.4 million through a private placement funding round. The company sold 2,100,000 shares at $4 each, with investors also receiving warrants to purchase additional shares. The proceeds from this placement will be used to complete the remaining clinical development of Nutriband's proprietary abuse-deterrent technology, Aversa, before the company seeks FDA approval for the product.

Nutriband entered into definitive securities purchase agreements on Friday for the purchase and sale of 2.1 million shares at a price of $4 per share. The funding is specifically earmarked for the completion of clinical development and the submission of a New Drug Application (NDA) with the U.S. Food and Drug Administration (FDA) for Nutriband's lead product, AVERSATM Fentanyl, an opioid patch with abuse-deterrent properties.

Why this matters: If approved, AVERSA Fentanyl could achieve annual sales between $80 million and $200 million in the U.S. market, potentially providing a significant revenue stream for Nutriband. The successful development and commercialization of abuse-deterrent opioid formulations could also help address the ongoing opioid epidemic by reducing the potential for misuse and abuse.

Nutriband's CEO, Gareth Sheridan, stated that the funding should provide the necessary resources to reach the NDA filing phase. The company's financial data suggests a degree of financial stability, with liquid assets exceeding short-term obligations, despite market skepticism about its earnings potential in the immediate future. Nutriband has also experienced strong stock price returns over the last month and six months, potentially indicating growing investor confidence or speculative interest in the company's future prospects.

The successful completion of this private placement funding round marks a significant milestone for Nutriband as it continues to advance the development of its Aversa technology. "We are pleased to have secured this funding, which will allow us to complete the clinical development of Aversa and bring us one step closer to submitting our NDA to the FDA," said Sheridan. The company remains focused on its mission to develop innovative abuse-deterrent formulations that can help combat the opioid crisis and improve patient outcomes.

Key Takeaways

  • Nutriband raised $8.4M through private placement to fund clinical development of Aversa technology.
  • Aversa is Nutriband's abuse-deterrent opioid patch, AVERSA Fentanyl, seeking FDA approval.
  • If approved, AVERSA Fentanyl could generate $80-200M in annual U.S. sales.
  • Funding should provide resources to reach NDA filing phase for Aversa technology.
  • Successful funding round marks milestone as Nutriband advances Aversa to combat opioid crisis.