Veru, Inc. (VERU) Exploring Strategic Alternatives for its Legacy Female Health Business
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Veru Inc. (NASDAQ: VERU), an oncology biopharmaceutical company with a focus on developing novel medicines for the management of prostate cancer and breast cancer, today announced that it has engaged Morgan Stanley & Co. LLC as a financial advisor to assist the Company and its management in pursuing strategic alternatives regarding its legacy FC2 Female Condom® / FC2 Internal Condom business (FHC Business).
“With the last two consecutive quarters for our FHC Business having set all-time historical records in terms of net revenues and gross profit, and with the last three-year compound annual growth rates for the FHC Business’ net revenues and gross profit being 60% and 83%, respectively, we think this is an ideal time to consider strategic alternatives, including the possibility of monetizing this business, as we recently did with our PREBOOST business,” said Mitchell Steiner, M.D., Chairman, President and Chief Executive Officer. “Furthermore, with the potential for five registration clinical trials in calendar year 2021 -- four for oncology indications and one for COVID-19 — it is clear that Veru has transformed itself into a premium, late-stage, clinical biopharmaceutical company, so the strategic fit with the FHC Business is not as strong as it once was.”
Dr. Steiner added: “The FHC Business has been a great business for Veru. Fiscal year 2020 was a record year in terms of net revenues of $41 million and gross profit of $29 million, and Q1 fiscal year 2021 is already off on another record-setting pace. The cash flow generated by the FHC Business has allowed Veru to significantly advance its biopharmaceutical clinical programs. We are open to exploring the right kind of strategic transaction for the FHC Business with a view towards the best, long-term interests of Veru shareholders, which may include continuing to operate the FHC Business if we ultimately decide that is in our shareholders’ best interests.”
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Related EntitiesMorgan Stanley, FDA
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