Phosphagenics to sell bioElixia business

Phosphagenics (ASX:POH) plans to sell its branded cosmetics division BioElixia as part of a decision to refocus on its core drug delivery operations.

The company announced it has already received a number of expressions of interest in purchasing the personal care products sold under the BioElixia brand.

The BioElixia range consists of skin and body care products formulated with Phosphagenics’ targeted penetration matrix (TPM) drug delivery technology.

Phosphagenics announced that the planned sale will only cover the BioElixia brand and associated products, and that it plans to retain the rights to license TPM for use in other cosmetic products under certain conditions.

As part of the sale process the company has terminated its distribution agreements covering bioElixia products with US nutritional company GNC and with Korean Drug Company. But a licensing deal with Le Metiér de Beauté has not been affected.

“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,” CEO Dr Ross Murdoch commented.

“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.”

Phosphagenics (ASX:POH) shares were trading 1.39% lower at $0.071 as of around 1 pm on Wednesday.