Sale allows Forbes to focus on functional foods
August 20, 2008
by Jeff Gelski
VANCOUVER, B.C. — Forbes Medi-Tech Inc. has sold its pharmaceutical and business unit in San Diego to Transition Therapeutics Inc., Toronto. Forbes will receive an upfront payment of $1 million and potential future payments of $6 million.
"As highlighted in a recent news release, this initiative will reduce the company’s burn rate while allowing Forbes to clearly focus on further developing its nutraceutical business — through both organic growth and M.&A. initiatives within the functional food and dietary supplement markets," said Charles Butt, president and chief executive officer of Forbes Medi-Tech, when the deal was announced Aug. 18.
Forbes in May said it planned to focus exclusively on its revenue-generating nutraceutical business for functional foods and dietary supplements. The company offers a phytosterol product portfolio, including the Reducol brand.