The company has acquired the rights for Bionica, an all-natural topical pain relief gel.
"We're beginning our promotion of Bionica now and we've just made a sale into the Australian market," said Carlo Shimoon, executive chairman of Origin BioMed's board. "We're excited to have this additional product along with new relationships in new markets."
Origin BioMed's primary product is Neuragen, a topical pain treatment sold in a cream and oil format. Retailers such as Walgreens, CVS, Rite Aid, Kroger, Shoppers Drug Mart, London Drug and many others in the United State and Canada sell Neuragen products.
In 2011, the company faced major challenges, including a coupon promotion that created $1.8 million in unexpected liabilities that forced it to restructure. The company has since repaid the liabilities through product sales.
"Origin BioMed has witnessed significant growth in overall sales and is on track for 50 per cent more sales over last year," said Mr. Shimoon.
Marli MacNeil, CEO of BioNova, the province's life sciences association, said Origin BioMed's turnaround is great news for the company and the industry.
"Origin had already proven itself in the international marketplace with a respected brand. To see the company weather a setback and come out with a new product and new customers is exciting. It's a credit to its management and to the investors who had the foresight and patience to let that happen."
Origin BioMed's performance has increased customer demand for its product and now new marketing and distribution is needed in its larger markets.
Nova Scotia Business Inc. (NSBI), is providing Origin BioMed a $1-million equity investment the company will use as working capital to fill orders and meet the new marketing and distribution needs.
In return, NSBI can convert the investment into more shares in the company. NSBI has invested $7,928,000 in Origin BioMed to date, including the investment announced today.
For more information on the company, visit www.neuragen.com