Nutriband Inc. announced a definitive agreement to sell 90% of its subsidiary, Pocono Pharmaceutical, to EarthVision Bio for $5 million. The transaction, expected to close on December 31, 2025, transfers operational control of Pocono Pharmaceutical while preserving a 10% ownership stake for Nutriband shareholders in the combined enterprise. This divestiture aligns with Nutriband’s strategic shift toward its core transdermal technology platform.

Nutriband plans to allocate the $5 million from the sale toward advancing AVERSA Fentanyl, its abuse-deterrent transdermal patch. The company’s management projects that AVERSA Fentanyl could achieve annual U.S. sales between $80 million and $200 million upon commercialization. Funding will support final clinical trials, regulatory submissions, and scale-up of manufacturing capabilities for the patch, which embeds aversive agents to hinder misuse and accidental exposure.

By retaining a 10% equity position in EarthVision Bio, Nutriband shareholders maintain exposure to the subsidiary’s sustainable product line developed by industry veterans Dr. Gordon Moore and Dr. Hans Franke. Combined with the focused investment in AVERSA Fentanyl, this transaction is designed to enhance shareholder value through two distinct growth avenues: potential royalty or equity returns from EarthVision Bio’s materials business and milestone-driven upside from the opioid-patch program.

The divestiture delivers immediate liquidity and reduces Nutriband’s capital requirements for non-core operations. With a leaner organizational structure, management can concentrate on securing FDA approval for AVERSA Fentanyl and pursuing partnerships for global commercialization. The company’s updated financial guidance anticipates a runway extension through mid-2027, contingent on successful clinical milestones and regulatory interactions.