Love Pharma (CSE:LUV) Co said it has signed a non-binding Letter of Intent (LOI) to acquire Naltrexone Therapeutics Inc, a pharmaceutical technology company with significant intellectual property (IP) related to the transdermal delivery of Naltrexone, an opioid antagonist, primarily used to manage alcohol and or opioid-use disorder.
"Love Pharma is very excited to add the Naltrexone Therapeutics transdermal patch IP to our addiction treatment portfolio," said Zach Stadnyk, Love Pharma president and CEO in a statement.
The acquisition is considered an arms-length transaction with 100% of Naltrexone Therapeutics to be purchased and the firm to become a wholly-owned subsidiary of Love Pharma for a total consideration of $2,000,000 payable in common shares of the issuer.
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The company said it anticipates closing the transaction within 30 days subject to final due diligence, adding that further details will be released upon the signing of a definitive agreement.
US Food & Drug Administration (FDA) approved Naltrexone acts by reducing cravings and feelings of euphoria associated with substance abuse disorder. Transdermal delivery of Naltrexone is expected to regulate dosage and improve patient experience while also eliminating or reducing current side effects of the drug such as nausea, which may restrict the growth of the existing Naltrexone market.
Transdermal delivery
"Transdermal delivery can provide patients with convenient and safe Naltrexone treatment, providing greater bioavailability, steady absorption and fewer GI-related side effects common with oral dosages currently available, the latter of which we believe has the potential to expand the market for Naltrexone," Stadnyk added.
The company said transdermal delivery benefits patients by improving compliance, delivering exact dosages, and reducing side effects.
The transdermal formulation of a drug can be incorporated within a patch which is then applied to the skin surface of the patient, providing a consistent absorption rate over a pre-determined time as prescribed.
"Love Pharma is developing a strong thesis around transdermal drug delivery applications in the addiction space due to the multiple patient-centred benefits and the company's top-tier relationships with biotech laboratories that specialize in fast-tracking the development, approvals and launch of transdermal drug delivery systems, opening up new markets and applications for existing FDA approved drugs," noted Stadnyk.
Founded in 2020, Love Pharma seeks to bring to market innovative products that enhance sexual health and wellness while providing an improved quality of life.
Contact the author at jon.hopkins@proactiveinvestors.com