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MISSISSAUGA, Ontario — Nuvo Pharmaceuticals Inc. has acquired the U.S. rights to over-the-counter lice treatment Resultz from Piedmont Pharmaceuticals LLC.
Nuvo said the purchase of U.S. product and intellectual property rights for the Resultz lice and egg removal kit follows its acquisition of international rights to the product earlier this month. Nuvo now owns all Resultz product and intellectual property rights worldwide.
“We are thrilled to complete full ownership of the global Resultz business through the acquisition of the U.S. rights for Resultz,” stated Jesse Ledger, president and chief executive officer of Nuvo Pharmaceuticals. “We believe the product attributes that have made Resultz a market leader in Canada and Europe — where market capture rates have reached as high as 35%, namely the class-leading five-minute application time, up to 100% efficacy and exceptional safety profile as a non-pesticide treatment — will make it a success in the United States as well.”
A pesticide-free, pediculicide rinse, Resultz (50% isopropyl myristate, 50% cyclomethicone D5 topical solution) addresses the challenge of increasing pesticide resistance in lice and concerns about patient safety through exposure to pesticides, according to Nuvo. The treatment disrupts the wax covering of head lice, resulting in their dehydration and death. The kit facilitates removal of lice, nymphs and nits with efficacy of up to 100 % in as little as five minutes. If necessary, a second application about seven to 10 days later will eliminate any remaining lice, the company said.
Nuvo noted that the Resultz lice and egg removal kit and its physical mechanism of action enable the product to work even with pesticide-resistant super lice. Resultz is indicated for use by children and adults.
The topical head lice treatment market in the United States was an estimated $255 million in 2016, including prescription and O-T-C products, Nuvo reported. Resultz was cleared as a Class 1 medical device by the Food and Drug Administration in May and hasn’t yet been commercially launched in the U.S.
Nuvo said it expects to commercialize Resultz in the U.S. through a licensing partner, and it has already initiated talks with potential licensees. Alongside current manufacturing partners, Nuvo will be able to produce Resultz for the U.S. market at its Varennes, Quebec, manufacturing facility.
Under the agreement for the purchase of the U.S. rights to Resultz, made via Nuvo’s Ireland subsidiary Nuvo Pharmaceuticals Ltd., Piedmont was paid $1.5 million and will receive a single-digit royalty from Nuvo Ireland on net sales through 2034.
“The team at Nuvo has been working hard for more than a year, with discipline and clear criteria for strong acquisition and in-licensing opportunities,” Ledger added. “And we are pleased to have been able to deliver on several recent transactions as a result, including the two Resultz transactions and international Pennsaid 2% licensing transactions. We continue to review and pursue multiple opportunities with that same focus and discipline.”
Nuvo paid $7 million plus sales-based royalties to Piedmont to acquire the international rights to Resultz outside the U.S. in a deal announced Jan. 2. The product is currently sold various European markets — including France, Spain, Portugal, Belgium, Ireland and the United Kingdom — as well as in Canada, Russia, Australia and Israel through a network of license agreements and partners. Net sales of Resultz in those markets totaled $16 million for the 12 months through September 2017.
