Oculus Innovative Sciences Sells Latin America Business to Invekra S.A.P.I. de C.V. for $19.5 Million in Cash
01 November 2016 - 7:05AM
Oculus Innovative Sciences, Inc. (NASDAQ: OCLS, warrants OCLSW), a
specialty pharmaceutical company that develops and markets
solutions for the treatment of dermatological conditions and
advanced tissue care, today announced the sale of the company’s
Latin American-related assets to Invekra S.A.P.I. de C.V. of Mexico
for $19.5 million in cash. Additionally, Invekra will pay
Oculus a three percent payment on all Latin American revenues
outside of Mexico, with a minimum payment of $250,000 per year for
the next ten years, to be paid quarterly in Mexican pesos.
According to the agreement, Oculus will sell all its Latin
American assets related to the Microdacyn®-based products sold into
Latin America and the Caribbean (except for dermatology products in
Brazil). In exchange, Invekra will pay Oculus $19.5 million,
with $18 million already paid as of October 28, 2016, and $1.5
million to be placed in escrow until certain equipment is delivered
to Invekra, which is expected in February 2017. As part of
the agreement, Oculus will maintain its current manufacturing
facility in Guadalajara, Mexico for production of its
Oculus-branded Microdacyn-based products for all countries outside
of the United States and Latin America. Meanwhile, Oculus
will provide assistance and equipment in the establishment of
Invekra’s own Microdacyn manufacturing facility in Mexico City’s
metropolitan area.
Jim Schutz, CEO of Oculus, said, “We genuinely see this as a
strategic opportunity to focus on our growing dermatological
business. From Invekra’s perspective, they are acquiring guaranteed
exclusivity in the Latin American market for our Microdacyn family
of products, thus controlling their own destiny and reaping the
full rewards from their marketing spend. From Oculus’ perspective,
we are selling a slower growing, lower-margin segment of our
business in exchange for a significant influx of immediate cash,
allowing us to further advance our higher-margin, fast growing U.S.
dermatology business. In addition, the proceeds from this deal
provide us with more than sufficient capital for us to reach
commercial breakeven and achieve operating profitability.”
Business Update Conference CallOculus’
management will hold a business update conference call on Tuesday,
November 1, 2016 beginning at 9:00 am. EDT to discuss the Invekra
agreement. Individuals interested in participating in the
conference call may do so by dialing (877) 303-7607 for domestic
callers or (973) 638-3203 for international callers.
Those interested in listening to the conference call live via
the Internet may do so at http://ir.oculusis.com/events.cfm.
Please log on approximately 30 minutes prior to the presentation in
order to register and download the appropriate software.
A telephone replay will be available for seven days following
the conclusion of the call by dialing (855) 859-2056 for domestic
callers, or (404) 537-3406 for international callers, and entering
conference code 96131841. A webcast replay will be available on the
site at http://ir.oculusis.com/events.cfm for one year following
the call.
About InvekraInvekra S.A.P.I.
de C.V. is the holding company of Laboratorios Sanfer, one of
Mexico’s leading private market pharmaceutical companies, with
sales throughout Latin America and the Caribbean. With over
75 years of experience in the pharmaceutical industry and over
1,000 sales people in Mexico, and 200-plus in other Latin American
countries, Invekra’s business model is primarily focused on the
development, manufacture and commercialization of patented and
off-patent branded specialty pharmaceuticals products. The
company’s product portfolio in Mexico consists of 185 brands and
371 SKUs spanning multiple therapeutic areas of human and animal
health, such as metabolic, cardiovascular, respiratory, oncology
and antibiotics. More information is available at
www.sanfer.com.mx.
About Oculus Innovative Sciences, Inc.Oculus
Innovative Sciences is a specialty pharmaceutical company that
develops and markets unique and effective solutions for the
treatment of dermatological conditions and advanced tissue care.
The company’s products, which are sold throughout the United
States and internationally, have improved outcomes for more than
five million patients globally by reducing infections, itch,
pain, scarring and harmful inflammatory responses. The company's
headquarters are in Petaluma, California, with manufacturing
operations in the United States and Latin America. European
marketing and sales are headquartered in Roermond,
Netherlands. More information can be found at
www.oculusis.com.
Forward-Looking StatementsExcept for historical
information herein, matters set forth in this press release
are forward-looking within the meaning of the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995,
including statements about the commercial and technology progress
and future financial performance of Oculus Innovative
Sciences, Inc. and its subsidiaries (the “Company”). These
forward-looking statements are identified by the use of words such
as “will pay,” “expected” and “delivered,” among others.
Forward-looking statements in this press release are subject to
certain risks and uncertainties inherent in the Company’s business
that could cause actual results to vary,
including such risks that regulatory clinical and
guideline developments may change, scientific data may not be
sufficient to meet regulatory standards or receipt of required
regulatory clearances or approvals, clinical results may not
be replicated in actual patient settings, protection offered
by the Company’s patents and patent applications may be
challenged, invalidated or circumvented by its
competitors, the available market
for the Company’s products will not be as large as
expected, the Company’s common stock and warrants may be delisted
from NASDAQ, the Company’s products will not be able to
penetrate one or more targeted markets, revenues will not be
sufficient to fund further development and clinical studies, the
Company may not meet its future capital needs, the Company may
not be able to obtain additional funding, as well as uncertainties
relative to varying product formulations and a multitude of diverse
regulatory and marketing requirements in different countries and
municipalities, and other risks detailed from time to time in the
Company’s filings with the Securities and Exchange Commission
including its annual report on Form 10-K for the fiscal year
ended March 31, 2016. The Company disclaims any obligation to
update these forward-looking statements, except as required by
law.
Oculus®, Microdacyn® and Microcyn® Technology are trademarks or
registered trademarks of Oculus Innovative Sciences, Inc. All other
trademarks and service marks are the property of their respective
owners.
Media and Investor Contact:
Oculus Innovative Sciences, Inc.
Dan McFadden
VP of Public and Investor Relations
(425) 753-2105
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