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Saturday 7 December 2019

Nutriband seeks to raise $3.75m with Nasdaq listing

Dubliner Gareth Sheridan values his Florida-based life sciences company at $65m, writes Sean Pollock

Nutriband has applied to be listed on the Nasdaq Capital Market as it seeks to raise $3.75m (€3.4m). Photo: PA
Nutriband has applied to be listed on the Nasdaq Capital Market as it seeks to raise $3.75m (€3.4m). Photo: PA

Sean Pollock

Nutriband, a medical technology company founded by Dubliner Gareth Sheridan, has applied to be listed on the Nasdaq Capital Market as it seeks to raise $3.75m (€3.4m).

The latest prospectus, filed by the Florida-based pharmaceutical company, values Nutriband at $65m. Nutriband, which is currently listed on the OTCQB market for over-the-counter stocks, has developed a transdermal Fentanyl abuse-deterrent opioid patch, which administers the pain relief drug through the skin while combating some of the risks of abuse.

Thirty-year-old Sheridan, who founded the company in 2012, said the technology could revolutionise the way opioids are used in medication. "We are excited at this next stage in Nutriband's growth," he said.

According to Nutriband's prospectus, the company plans to use $315,000 of the money raised to pay premiums on financing issued in October. It then plans to use the rest of the funding for research and development associated with its Fentanyl product and the development of other transdermal patches.

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In November 2018, Nutriband raised $500,000 through the sale of common stock. It also raised gross proceeds of $250,000 in October.

The company added that the proceeds of the NASDAQ offering would not be sufficient to enable it to complete the development of the Fentanyl product.

Nutriband estimates it will require between $7m to $9.5m in addition to the funds used from the proceeds of the offering to complete the Food and Drug Administration (FDA) clinical trial process.

Research and development costs for the anti-abuse patch have been budgeted at $5m, which include clinical manufacturing and trials.

Once the patch is ready, Nutriband will begin to seek market approval from the FDA. It is also set to distribute products to South Korea, subject to regulatory approval, through a distribution agreement with Korean group Best Choice potentially worth $90m.

In the prospectus, Nutriband claims that its abuse-deterrent Fentanyl patch, which includes aversive agents, could lower the number of opioid-related deaths.

A 2017 report from the National Institute on Drug Abuse said of the more than 72,000 drug overdose deaths in the US, nearly 30,000 occurred due to overdoses of Fentanyl.

Nutriband, whose president is businessman and former presidential candidate Sean Gallagher, acquired US-headquartered novel drug delivery company, 4P Therapeutics, for $2.25m last year.

For the year ended January 31, 2019, Nutriband generated revenue of $245,000, though reported a $3.3m net loss.

The original patches delivered vitamins and nutrients into a user's system over several hours.

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