Aytu BioScience Acquires Innovus Pharmaceuticals to Expand Consumer Healthcare E-Commerce Platform BeyondHuman®

On September 16, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that pharmaceutical company Aytu BioScience (Aytu) announced the acquisition of Innovus Pharmaceuticals (Innovus). No financial terms of the acquisition were disclosed.

Following the completion of this acquisition, Aytu BioPharma will further develop and commercialize Innovus Pharmaceuticals Inc.’s healthcare e-commerce platform, BeyondHuman®, and bring to market more than 30 medical health products in the areas of diabetes, sexual health, and respiratory health.

Innovus, established in 2011 and headquartered in California, USA, is an emerging over-the-counter (OTC) and specialty pharmaceutical company. The company focuses on the commercialization, licensing, and development of safe and effective OTC medications and consumer care products to improve people's health. Innovus is committed to becoming a leader in the development and marketing of OTC pharmaceuticals.

BeyondHuman®, a platform under Innovus, is one of the largest direct-to-consumer marketing platforms in the United States. By integrating print, direct mail, magazines, and online purchasing into its marketing strategy, the platform reaches over 30 million potential consumers each month. With 100,000 followers on social media, BeyondHuman® has successfully launched multiple lesser-known brands, establishing itself as a recognized e-commerce platform valued at millions of dollars.

Founded in 2002 and headquartered in Colorado, USA, Aytu is a commercial-stage specialty pharmaceutical company. Aytu currently markets Natesto®, the only FDA-approved nasal formulation for hypogonadism (low testosterone). Aytu also holds exclusive rights to ZolpiMist™ in the United States and Canada, which is the only FDA-approved oral spray prescription sleep aid. Aytu recently acquired exclusive U.S. commercial rights to Tuzistra® XR, the only FDA-approved 12-hour codeine antitussive syrup, composed of codeine polistirex and chlorpheniramine polistirex in an extended-release oral suspension.

Aytu is developing a novel rapid semen analysis system, MiOXSYS®, which has the potential to become the standard of care for diagnosing and managing male infertility caused by oxidative stress. MiOXSYS has been commercialized outside the United States, obtaining CE marking, approval from Health Canada, clearance from the Australian Therapeutic Goods Administration (TGA), and authorization from Mexico’s COFEPRIS. Aytu’s strategy is to continue expanding its revenue-generating product portfolio, leveraging its commercial team and expertise to establish leading brands in major healthcare markets.

Dr. Bassam Damaj, President and Chief Executive Officer of Innovus, stated, “The merger with Aytu marks a turning point for Innovus. We look forward to helping Aytu become a world-class healthcare company, and I am pleased to continue serving as President of Aytu’s Consumer Health division. Leveraging Innovus’ comprehensive strengths, we believe we can accelerate the development of novel over-the-counter medications and supplements, while expanding our portfolio of consumer health products, thereby further broadening Aytu’s product lineup.”

Aytu CEO Josh Disbrow commented, “Through this business combination, Aytu is entering a large, rapidly evolving healthcare market at an opportune time. Over the past two years, Aytu has made significant investments in consumer health, telemedicine, and digital health, making now the ideal moment to enter this high-growth sector. Furthermore, more than 90% of patients self-treat with over-the-counter options before seeking care from a physician.”

Disbrow added, “Aytu has now established a consumer division to invest in a broader patient market while continuing to expand its portfolio of novel prescription pharmaceutical products. This will position Aytu as a fully integrated specialty pharmaceutical company addressing patient needs across both prescription and over-the-counter categories. Since 2017, Dr. Bassam Damaj and his team have developed a robust product pipeline, more than doubling revenues, so I am delighted to pursue this highly promising transaction.”

(Compiled by Hu Yifan)