San Diego, CA -- (ReleaseWire) -- 05/24/2016 --Innovus Pharmaceuticals Inc. (OTCQB:INNV), a provider of over-the-counter and consumer products for men and women's health, vitality, and respiratory diseases, recently acquired Beyond Human for a cash purchase price of $630,000. The acquisition provided the company with natural testosterone booster supplements, including Beyond T Human® and Human Growth Agent HGA® that generated $2.2 million in revenue and $400,000 in profit last year.
In this article, we will take a closer look at the testosterone replacement market and why the company's recent acquisition of Beyond Human is a move in the right direction.
Testosterone Replacement
According to the National Institutes of Health, roughly five million American men do not produce enough testosterone – and that number is growing as the population ages. Men tend to experience a gradual decline in testosterone after the age of 30, which can cause fatigue, weakness, depression, and the loss of a sex drive. These issues can significantly decrease quality of life and have a profound impact on those in relationships.
To view the Testosterone Level by Age Chart please click here.
The primary treatment for these conditions is testosterone replacement through gels or patches that must be regularly applied to maintain steady testosterone levels. More recently, implantable testosterone pellets have been released into the market as a device that is implanted under the skin of the buttocks and releases the hormone over the course of three to four months – reducing the need for daily gels or patches.
The global hormone replacement therapy market is expected to reach $28.4 billion in size by 2022, according to Grand View Research. Within this market, testosterone replacement is expected to grow at an ~10% compound annual growth rate, from $2.4 billion in 2013 to $3.8 billion by 2018, with most products on the market coming from large multinational companies like AbbVie Inc. and Eli Lilly & Co., as well as from some smaller competitors.
Alternative Approaches
Beyond Human takes a different approach to testosterone boosting through a nutritional supplement rather than direct injection or a topical gel. The company's flagship Beyond T Human® contains Vitamin B6, Vitamin B12, Zinc, and a proprietary blend of Fenugreek, Eurycoma Longifolia, Rhodiola Rosea, Saw Palmetto, and Astaxanthin. Ingredients in this supplement have been published and shown to naturally boost testosterone levels without taking the hormone directly.
Vitamin B6 suppresses the synthesis of estrogen in the body and regulates androgen production, which both help increase testosterone levels. In the short-term, vitamin B12 has been shown to raise testosterone levels dramatically after injection or ingestion. And, the herbal components of the supplement include both cordycepssinensis and tribulusterrestris, which have both been shown to improve testosterone production.
Innovus Pharma could help further validate these claims by initiating studies to determine the efficacy of the Its BTH supplement as a whole product as it has with its Zestra® product or female sexual dysfunction, its Androferti® for male infertility and Vesele® for increasing blood flow. With its deep expertise in running clinical studies, the company's other men and women's health and vitality products have been extensively validated in the clinic in order to reassure customers that they're getting an effective treatment. Beyond T Human® also fits well within its existing sexual health product portfolio.
Bottom Line Impact
Beyond Human generated over $1.3 million in gross sales and approximately $300,000 in net profit during 2014, according to Innovus' press release announcing the deal. In 2015, these figures rose to $2.2 million in gross revenue and $400,000 in net profit. Management expects to grow these figures to over $3 million in gross revenue and over $600,000 in net profit once the acquisition is fully integrated into its platform over the next few years.
Management plans to grow the newly acquired assets by selling the six new Beyond Human products through its numerous international distributors. The company also plans on leveraging Beyond Human's online platform and large database of thousands of customers to cross sell its existing products, including EjectDelay®, Sensum+®, and Vesele®. These are highly complementary products that could see strong uptake from the customer base.
"The closing of the acquisition of the Beyond Human assets marks a turning point in Innovus Pharma revenue scale-up and we believe it should help the Company move into a cash flow positive situation followed by profitability very quickly," said Dr. Bassam Damaj, President and Chief Executive Officer of Innovus Pharma.
Looking Ahead
Innovus Pharma's acquisition of Beyond Human cements its position in the rapidly growing testosterone booster supplement industry and creates compelling synergies with its existing customers and distribution channels. Investors interested in the OTC pharmaceutical space, including companies like Aclaris Therapeutics Inc. or Teligent Inc. may want to take a closer look at the stock.
For more information, visit the company's website at www.innovuspharma.com.
About Innovus Pharmaceuticals, Inc.
Headquartered in San Diego, Innovus Pharma is an emerging leader in OTC and consumer products for men's and women's health and vitality. The Company generates revenues from its lead products (a) BTH® Testosterone Booster, (b) BTH® Human Growth Agent, (c) Zestra® for female arousal and (d) EjectDelay® for premature ejaculation and has an additional five marketed products in this space, including (e) Sensum+® for the indication of reduced penile sensitivity, (for sales outside the U.S. only), (f) Zestra Glide®, (g)Vesele® for promoting sexual and cognitive health, (i) Androferti® (in the US and Canada) to support overall male reproductive health and sperm quality, (j) BTH Vision Formula, (k) BTH Blood Sugar, among others and eventually FlutiCare™ OTC for Allergic Rhinitis, if its ANDA is approved by the U.S. FDA.
For more information, go to www.innovuspharma.com, www.zestra.com; www.ejectdelay.com; www.myvesele.com; www.sensumplus.com; www.myandroferti.com; www.beyondhumantestosterone.com; www.getbeyondhuman.com; www.trybeyondhuman.com.
For further information on INNV please visit www.upticknewswire.com
Innovus Pharma's Forward-Looking Safe Harbor
Statements under the Private Securities Litigation Reform Act, as amended: with the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risks and uncertainties that may individually or mutually impact the matters herein described for a variety of reasons that are outside the control of the Company, including, but not limited to, receiving patent protection for any of its products, to receive approval or meet the requirements of any relevant regulatory authority, to successfully commercialize such products and to achieve its other development, commercialization and financial goals, whether we and our distributors will continue to successfully market and sell our products.. Readers are cautioned not to place undue reliance on these forward-looking statements as actual results could differ materially from the forward-looking statements contained herein. Readers are urged to read the risk factors set forth in the Company's most recent annual report on Form 10-K, subsequent quarterly reports filed on Form 10-Q and other filings made with the SEC. Copies of these reports are available from the SEC's website or without charge from the Company
Innovus Pharmaceuticals, Inc.
Reuven Rubinson
Vice President of Finance
rreubinson@innovuspharma.com
858-964-5123
Source: https://upticknewswire.com/innovus-pharma-joins-abbvie-inc-and-eli-lilly-co-in-the-race-for-the-3-billion-testosterone-replacement-market