Acumen Health Holdings ("Acumen") to Acquire the Avenova brand from NovaBay Pharmaceuticals

Rhea-AI Summary

Acumen Health Holdings has announced that its subsidiary, PRN Physician Recommended Nutriceuticals, will acquire the Avenova® brand from NovaBay Pharmaceuticals (NYSE American: NBY). The acquisition, expected to close in Q4 2024, will enhance PRN's portfolio of science-based eye health products. Avenova® offers products for ocular health, including cleansing sprays, wipes, and heated eye masks, with its leading product being a hypochlorous acid spray for eye hygiene.

PRN plans to leverage its existing sales force and relationships with eye care professionals to expand access and awareness of Avenova® products. This marks PRN's sixth add-on acquisition in five years, aligning with its strategy to grow in the eye health market both organically and through acquisitions.

Positive

• Acquisition expands PRN's product portfolio in the eye health market
• Potential for increased market reach through PRN's existing sales channels
• Strengthens PRN's position in the science-based eye health products sector
• Aligns with PRN's growth strategy through acquisitions

Negative

• None.

Insights

Financial Analyst

The acquisition of Avenova by Acumen Health Holdings is a strategic move that could potentially boost PRN's market position in the eye health sector. This deal aligns with PRN's growth strategy, marking their sixth acquisition in five years. While financial details are not disclosed, the transaction likely offers synergistic benefits for PRN.

Investors should note that this acquisition diversifies PRN's product portfolio, potentially leading to increased revenue streams. The company's plan to leverage its existing sales force and professional relationships could result in cost-efficient expansion of Avenova's market reach. However, the impact on Acumen's financials and the deal's ROI remain uncertain without specific financial figures.

Market Research Analyst

This acquisition signals growing consolidation in the eye health market, reflecting the industry's potential. Avenova's pioneering use of hypochlorous acid in eyecare products suggests a trend towards innovative, science-based solutions in this sector. PRN's focus on expanding through both organic growth and acquisitions indicates a robust market demand for eye health products.

The multi-channel distribution strategy of Avenova (direct-to-consumer, professional and retail pharmacy) aligns well with current market trends, potentially allowing PRN to capture a wider consumer base. However, investors should monitor how effectively PRN integrates and expands Avenova's market presence, as this will be important for realizing the acquisition's full value.

Medical Research Analyst

The acquisition of Avenova strengthens PRN's position in the science-based eye health products market. Hypochlorous acid, the active ingredient in Avenova's leading product, has shown promise in promoting eye hygiene. This aligns with the growing emphasis on preventive eye care and could meet increasing consumer demand for non-pharmaceutical eye health solutions.

However, the long-term success of this acquisition will depend on ongoing research and development to maintain the product's efficacy and relevance. Investors should watch for any future clinical studies or product improvements that could further validate Avenova's effectiveness and drive market growth. The integration of Avenova into PRN's portfolio may also spur new product innovations, potentially creating additional value.

This Acquisition Enhances PRN Physician Recommended Nutriceuticals' ("PRN") Product Portfolio of Science-Based Eye Health Products

BLUE BELL, Pa., Sept. 20, 2024 /PRNewswire/ -- Acumen Health Holdings, LLC, a professionally recommended, consumer-preferred dietary supplements company focused on eye health and companion animals, announced today that its subsidiary, PRN Physician Recommended Nutriceuticals, LLC, has entered into a definitive asset purchase agreement to acquire the assets of the Avenova® brand (the "Brand") and business from NovaBay® Pharmaceuticals, Inc. (NYSE American: NBY) ("NovaBay"). The Brand offers several products for ocular health including cleansing sprays, absorbent wipes, and heated eye masks. The Brand's leading product, the Avenova® Lid & Lash Cleansing Spray, is a hypochlorous acid spray utilized to promote eye hygiene. Avenova® products are sold through the direct-to-consumer, professional, and retail pharmacy channels. The transaction is anticipated to close in the fourth quarter of 2024, subject to the satisfaction of customary closing conditions.

The acquisition of the Brand will bolster PRN's existing portfolio and strengthen PRN's commitment to deliver high-quality products that have a meaningful impact on patients' eye health. PRN will leverage their existing sales force and relationships with optometrists and ophthalmologists to expand access and awareness of Avenova® products.

"The Brand pioneered the use of hypochlorous acid in eyecare and has a long history of success in the professional channel," said Scott Woodruff, CEO of Acumen Health Holdings. "This exciting acquisition broadens PRN's existing eye health product portfolio and allows PRN to better serve patients through offering an expanded suite of science-based eye health products."

The deal builds on PRN's strategy to grow its presence in the eye health market organically and through acquisitions. Avenova® will represent the sixth add-on acquisition completed by PRN in the past 5 years.

Please see the NovaBay® Pharmaceuticals, Inc. (NYSE American: NBY) press release for information regarding their go-forward plans following this transaction.

Alex Putala
(920) 255-4972
960 Harvest Drive, Suite B250
Blue Bell, PA  19422

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SOURCE Acumen Health Holdings

FAQ

What is Acumen Health Holdings acquiring from NovaBay Pharmaceuticals (NBY)?

Acumen Health Holdings, through its subsidiary PRN Physician Recommended Nutriceuticals, is acquiring the Avenova® brand and business assets from NovaBay Pharmaceuticals (NYSE American: NBY).

When is the acquisition of Avenova® by PRN expected to close?

The acquisition is anticipated to close in the fourth quarter of 2024, subject to the satisfaction of customary closing conditions.

What products does the Avenova® brand offer?

The Avenova® brand offers several products for ocular health, including cleansing sprays, absorbent wipes, and heated eye masks. Their leading product is the Avenova® Lid & Lash Cleansing Spray, a hypochlorous acid spray for eye hygiene.

How many acquisitions has PRN completed in the past 5 years, including Avenova®?

The acquisition of Avenova® will represent the sixth add-on acquisition completed by PRN in the past 5 years.