Nutriband declares 25% preferred stock dividend for shareholders

Published 02/07/2025, 13:18
Nutriband declares 25% preferred stock dividend for shareholders

ORLANDO - Nutriband Inc. (NASDAQ:NTRB), a pharmaceutical company with a market capitalization of $89 million and impressive recent momentum showing a 76% price gain over the past six months, announced Wednesday that its Board of Directors has approved and declared a 25% preferred stock dividend for shareholders. According to InvestingPro data, this marks the company’s first dividend initiative.

Investors who hold shares as of the July 25, 2025 record date will receive one preferred share for every four common shares owned, with distribution scheduled for August 5. Each preferred share will be convertible to one common share following FDA approval of the company’s AVERSA Fentanyl product. The company maintains a healthy balance sheet with a current ratio of 3.71, indicating strong short-term financial stability.

If left unconverted, the preferred shares will entitle holders to an annual cash dividend paid from company profits as determined by the Board of Directors.

"Our core goal is to continue to create value for our shareholders particularly as we near closer to the commercialization of AVERSA fentanyl," said Gareth Sheridan, CEO of Nutriband, in the press release. InvestingPro analysis shows analysts maintain a Strong Buy rating with a $15 price target, suggesting significant potential upside. Get access to 8 more exclusive InvestingPro Tips for comprehensive analysis.

Nutriband’s AVERSA technology is designed to prevent abuse, diversion, misuse, and accidental exposure of drugs with abuse potential in transdermal patch form. The company’s lead product under development is an abuse-deterrent fentanyl patch.

The technology is protected by patents in multiple countries including the United States, Europe, Japan, China, and Australia, according to the company statement.

Nutriband primarily focuses on developing transdermal pharmaceutical products, with its abuse-deterrent technology designed to be incorporated into various transdermal patches while maintaining accessibility for patients who need these medications. The company has demonstrated revenue growth of 19% over the last twelve months, though it currently operates at a loss with an EBITDA of -$5.9 million.

In other recent news, Nutriband Inc. announced the issuance of a new U.S. patent for its AVERSA™ abuse deterrent technology, expanding its intellectual property rights in the transdermal pharmaceutical sector. This technology aims to prevent the abuse and misuse of drugs with potential for addiction, such as fentanyl, and is part of Nutriband’s broader strategy to provide safer medication delivery systems. The company is collaborating with Kindeva Drug Delivery to commercialize AVERSA Fentanyl, which could potentially achieve peak annual U.S. sales between $80 million and $200 million. Additionally, Nutriband has secured a patent for the same technology in Macao, further extending its international intellectual property portfolio to 46 countries.

The company has also made strides in manufacturing and supply chain processes to meet FDA standards, with plans to initiate a pivotal Human Abuse Liability clinical trial for AVERSA Fentanyl in 2025. Nutriband’s subsidiary, Pocono Pharma, has reported strong revenue growth in contract manufacturing, particularly in collaboration with KT Tape. In efforts to boost brand visibility, Nutriband has entered into an Associate Partnership with Charlotte FC, aligning with its local manufacturing initiatives in North Carolina. These developments reflect Nutriband’s ongoing efforts to address drug misuse and enhance the safety profile of its products.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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