Guardion Health Sciences Inc. (NASDAQ: GHSI) is confident that its recent acquisition of Activ Nutritional LLC will be a strong catalyst for growth.
The company successfully entered into an equity purchase agreement with Adare Pharmaceuticals Inc. in June this year to acquire all the equity of Activ Nutritional for $26 million.
Adare owned the Viactiv® line of supplement chews for bone health, immune health, and other applications.
The products are primarily marketed through many of the United States' largest retailers, including Walmart (retail and online), Target, and Amazon. In addition, the company is developing it directly to the consumer sales channel. The Viactiv product lines are expected to become Guardion's most prominent and provide access to significant opportunities in the short term for growth and expansion.
Commenting on the significance of the acquisition, Bret Scholtes, Guardion's CEO, said the deal "satisfies a number of our current objectives as we continue efforts to build our position within the clinical nutrition market. Activ Nutritional has an established brand and presence from which we can significantly expand our capabilities in marketing, product lines, and new distribution channels. It also will provide a significant boost to our current revenue and operating earnings."
"The transaction immediately expands our reach beyond ocular health, which has long been our primary focus, and allows us to explore opportunities in the wider world of clinical nutrition more easily," he added.
Scholtes further explained exclusively to Benzinga.com that the deal is exciting. "It's going to take a little bit of time, but we think that we have distribution channels that will get us there. As a result of this acquisition, we think we have a strong brand in Viactiv, which we can help to drive some other businesses."
Scholtes noted that the Viactiv brand has been around for about 20 years. Guardion Health Sciences is enthusiastic about the prospects for the future with the company now in its fold.
"Our company is small and in the early stages of growth, but we are optimistic about our ability to create a clinical nutrition business — a nutrition business that's backed by clinical science," Scholtes added.
About Guardion Health Sciences
Guardion Health Sciences is a clinical nutrition and diagnostics company that offers a portfolio of science-based, clinically supported nutrition, medical foods, supplements, and diagnostic products that support healthcare professionals, their patients, and consumers in achieving health goals.
Guardion's commercial and developmental initiatives are supported by equally impressive scientific and medical advisory boards, led by seasoned business executives and physicians with many years of experience.
The medical foods developed, manufactured, and distributed by Guardion Health Sciences, Lumega-Z, and GlaucoCetin, are designed specifically for the dietary management of specific conditions.
Lumega-Z is designed to restore and replenish a depleted macular pigment, and GlaucoCetin is designed to reverse underlying mitochondrial dysfunction in optic nerve cells. A depleted macular pigment is a significant risk factor for macular degeneration, while mitochondrial dysfunction leads to optic nerve damage and vision loss in glaucoma patients.
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