InnovaDerma PLC (LSE:IDP) said it has signed a joint venture agreement with one of its non-executive directors to “accelerate and develop” its Prolong premature ejaculation brand.
Mark Ward last week acquired a 55% stake in the joint venture vehicle, Ergon Medical Limited, hitherto a subsidiary of InnovaDerma, for a value of £275,000, with InnovaDerma retaining the other 45%.
The venture will focus on rapidly increasing sales of Prolong and the board plans to review an exit strategy via trade sale or listing to maximise shareholder value after a period of three to five years.
Following a strategic review, InnovaDerma announced in September that the board had concluded that while Prolong is the world's only FDA-cleared medical device of its kind and has growth potential, it requires significant investment and has limited synergies with the rest of the company's portfolio.
The company said the joint venture aims to accelerate the marketing and sales of the Prolong medical device and enable the company to focus on its topical products.
No operational or capital investment in Prolong's development will be required of the company as part of the joint venture, it added.
InnovaDerma said Ward has a proven track record in successfully growing businesses and has significant experience in the digital, technology and consumer industries.
Chief executive Blake Hughes said: “Over the past 12 months, we have focussed on simplifying InnovaDerma to ensure it will deliver sustainable and profitable growth. The Joint Venture is another important step towards this objective, enabling us to focus on our core topical business while also seeking to create value from Prolong, which we believe to be an exciting product that can transform and improve relationships. Our Joint Venture partner has both the skills and funding to rapidly accelerate sales of Prolong and thereby maximise value for our shareholders."