Nutriband is a pharmaceutical company that was founded in Dublin in 2012 before relocating to Florida in 2016. Gareth Sheridan, who recently announced his intention to run for president and has stepped aside for three months as chief executive, is its founder.
The company’s lead product is Aversa, which it describes as “abuse-deterrent transdermal technology”, which incorporates aversive agents to prevent the abuse, diversion, misuse, and accidental exposure of drugs with abuse potential, specifically opioids.
Its first application is its abuse-deterrent fentanyl transdermal patch, which it is developing to provide clinicians and patients with extended-release chronic pain relief. It is awaiting regulatory clearance for this product in the US.
The company has operations in Florida, Georgia, and North Carolina, and recently began its expansion back to Dublin.
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What lightbulb moment prompted you to start-up in business?
It was originally a thesis idea. I had noticed a patch that my dad wears and began wondering what other types of medications could be delivered that way that had not been explored yet. The thesis became a business plan, and Nutriband was registered in 2012.
Describe your business model and what makes your business unique.
We structured the company in a unique way, using capital markets and a public listing approach. We listed on the OTC Markets in 2016 and started using stock to purchase companies and technologies in place of cash.
This helped us to avoid raising expensive early capital and retain a major equity stake in the company today, even after an eventual qualification to list on the Nasdaq (in New York) in 2010.
We also do not develop new drug applications. We take existing generic medications and use our technologies to improve upon those and relaunch them as a branded product again.
What is your greatest business achievement to date?
Growing the company to a level where we qualified to list on the Nasdaq Stock Exchange and getting to ring the opening bell.
What was your back-to-the-wall moment and how did you overcome it?
We almost got sued by the SEC (The US Securities and Exchange Commission) for an accidental erroneous disclosure in one of our filings while on the OTC markets.
At first, we thought it could be explained. However, it grew to the point where they were doubling down. We hired an excellent attorney with SEC experience and eventually settled the issue in a cease-and-desist, no-admit, no-deny agreement.
This led to our back-to-the-wall moment, where, while running on fumes financially, we received a rejection from Nasdaq in our first application.
After a couple of days of self-pity, we got back to work, raised some working capital with existing shareholders, and grew the company’s equity by $7.5 million (€6.4 million) over the course of the next year. We reapplied to list again successfully.
What moment would you cite as a turning point for the company?
Credibility provided by our Nasdaq listing and subsequent partnership with Kindeva Drug Delivery (formerly 3M Drug Delivery), where Kindeva supplied their generic approved fentanyl patch for us to add our technology to.
What were the best and the worst pieces of advice you received when starting out?
The worst advice was that banks and institutions have your company’s best interests at heart. I firmly believe that today, Wall Street is built on companies failing, not succeeding.
Describe your growth funding path.
We were reluctant to raise expensive capital early on and instead listed the company to use stock as an acquisition currency to grow. Our gamble on this paid off, and although we raised modest cash along the way, we were able to build Nutriband without any significant seed or angel rounds.
We reached a market capitalisation of $120 million (its market value currently is about $75 million), and we have been able to maintain stable and steady control as a result of the minimal capital rounds.
We turn down anywhere from $5 million to $15 million on a weekly basis from funds and institutions because we do not need it. We are not in the business of raising money, and having as little dilution as possible is a core focus for us as a company.
How will your market look in three years and where would you like your business to be?
For our first product, we are expected to reach annual revenues of $200 million. Our second product is independently estimated to have upwards of $135 million in yearly revenue. We are targeting the billion dollar club before the end of 2027.
What are your annual revenues and profits?
We are not yet profitable, as is typical with clinical development-stage companies. However, we also contract manufacture sports tapes and products for brands such as Reebok and KT Tape.
Our target revenue from this source for the financial year to the end of January 2026 is $3 million*.
This goes towards operational costs and reduces our clinical burn.
Why have you decided to seek a nomination for the presidency?
It’s never been a more important or relevant time in our history for a young president, particularly with the average age just under 40. I would be hoping that having a younger president would help narrow the division we’re seeing in the country at the moment and that we can work together to tackle the issues, particularly the housing crisis. The younger generation aren’t feeling very enthusiastic that their voices are being heard.
What impact will this move have on your business?
The company is in very safe hands and the biggest asset at the company is the team. We’ve got a very definite plan and timeline between now and Christmas on what needs to be achieved. Whether I’m in there or not that timeline needs to be adhered to. The company is motoring along fine. Stepping aside is not something that I think will fundamentally affect the opportunity for the company.
What happens if you win?
There are mechanisms where I can put the shares into a trust. I would be very proud that it was a company that I started and be very keen to still follow the journey, just not as CEO. Nutriband as a whole is going to do a lot of good...and will help a lot of people who are dealing with addiction and people who are dealing with pain.
*An earlier version of this article stated a higher target figure for contract manufacturing, which has since been revised by the company.
