So if I understand it correctly, OMP is going to be a distributor of another company's skincare product? Is this an indicator that they have given up trying to innovate and develop their own products? Why work to build a brand that does not belong to you? It seems like we have moved from building/buying equity in our own brands and technologies to getting paid by the day (or bottle as it were) to build it for others...
If our sales force is now rented out to others, my concern is that it dilutes their efforts on our own products. I dont know the economics of the deal, but I tend to think I dont like it.... UNLESS it is an interim step to buying the company... A try before you buy strategy would make sense..
Essentially they have been doing this for years. They distribute someone else's tretinoin (Triax now PreCision) and Refissa (Spear now Suneva). I'm sure to continue rights to Refissa they need to carry other products as well. No reason they couldnt have acquired Spear if they were serious about being in the game for the long haul.
Honestly, what have they "innovated" over the past 6 years? Everything has been a line extension or a minor product acquisition. New sunscreens and peel's will not push this brand to the next level. Sorry, but there is no pipeline or R&D.
Someone needs to acquire it or run it who is serious about marketing this brand to its potential. Otherwise, executive management and the board will continue with the same charade they've been pulling for years now.
OMPI's new partner is Suneva Medical. is owned by HealthCare Royalty Partners. IMO OMPI is a good fit if they get pushed.
About HealthCare Royalty Partners
HealthCare Royalty Partners is a global healthcare investment firm focused on providing financing solutions to healthcare companies and royalty owners with interests in approved pharmaceutical and medical device products. The firm's senior investment team has participated in 45 royalty financing's valued at over $2 billion over the past decade.