Aytu BioPharma announces sale of Consumer Health business

Aytu BioPharma has entered into a definitive agreement to divest its Consumer Health business to a private, e-commerce focused company. The divested business encompasses the established e-commerce platform, certain inventory and associated consumer brands, intellectual property, contracts and liabilities, and provides for Aytu to receive revenue-based royalty payments on future sales of former Consumer Health business products. Aytu finalized the acquisition of Innovus Pharmaceuticals, Inc. in February 2020, and has been operating the Consumer Health business unit as its wholly-owned subsidiary with a small group of dedicated employees. Given the Company’s focus on its prescription pharmaceutical business, Aytu undertook a strategic review process and determined that the Consumer Health business was no longer aligned with its strategy and objective to achieve consistent profitability and generate positive cash flows. Aytu had previously communicated its intent to wind down the Consumer Health business to concentrate on growing its portfolio of prescription medicines. The Company operated the Consumer Health business at near adjusted EBITDA breakeven during the wind down period as it sold through existing inventory and managed down numerous contractual obligations. The savings realized from the strategic shift away from the Consumer Health business, coupled with incremental margin improvements expected from the closure of the Grand Prairie, Texas manufacturing site, is expected to significantly enhance the Company’s operating results and drive stockholder value.