Phosphagenics has announced plans to divest its branded cosmetics division, BioElixia, with the proceeds to be reinvested in the company's core activities.
Phosphagenics said in a statement that it had recently received a number of expressions of interest in its range of personal care products sold under the BioElixia brand.
According to the company, the BioElixia product range has been growing over the last few years and has the capacity to provide potential purchasers with an opportunity to acquire a brand with an established distribution network and product differentiation based on its TPM technology.
TPM (Targeted Penetration Matrix) is a Vitamin E based drug delivery system that the company says enhances the topical or transdermal delivery of active molecules.
"Whilst we have demonstrated that the addition of TPM has real potential across a large number of areas, it is essential for a relatively small company like Phosphagenics to recognise where it can maximise value for shareholders, and apply its precious resources in those areas," said CEO, Dr Ross Murdoch.
"This decision reflects our commitment to focus on the areas where we believe we can add most value and find experts to maximise shareholder value for the others," he said.
Phosphagenics Chairman, Lawrence Gozlan, said that: "The brand has a growing following and growing distribution network. It has unique and proprietary differentiation through its TPM technology, and the potential upside of the association with our other TPM based clinical assets."
He continued, "We are now focused on ensuring that the ultimate sales arrangement recognises the unique value of the brand and provides the opportunity for shareholder upside."