Nutriband Stock Jumps 17% After Agreement To Sell 90% Of Pocono Pharma For $5 Mln

(RTTNews) - Nutriband Inc. (NTRB) shares rose 17.29%, closing at $5.63, up $0.83, after the company announced an agreement to sell a 90% stake in its subsidiary Pocono Pharmaceutical to EarthVision Bio for $5 million in cash.

The company said it plans to use the proceeds to advance development of AVERSA Fentanyl, an abuse-deterrent transdermal opioid patch that could become the first of its kind and is estimated to carry potential annual U.S. sales of $80 million to $200 million.

The rally followed news that Nutriband will retain a 10 percent ownership interest in EarthVision Bio after the transaction, providing continued exposure to the unit's future growth while freeing capital for its core development programs.

On the day of the announcement, NTRB opened near $4.80, climbed to an intraday high of $5.70, and touched a low of $4.75, compared with a previous close of $4.80. The stock trades on the Nasdaq.

Trading volume was far exceeding the stock's average daily volume, reflecting strong investor reaction to the strategic transaction. Nutriband's 52-week range is approximately $2.10 - $7.40.