What is the estimated size of the Permethrin market in Canada?

The Permethrin market in Canada is estimated to be around $10 million.

What is the status of the licensing discussions for the Natroba product?

The company has ongoing licensing discussions with interested parties and expects to reach an agreement by the end of 2026.

How is the company planning to increase the market share of Natroba?

The company is exploring direct-to-consumer channels and negotiating with states to make Natroba a preferred product, which could significantly impact market share and revenue.

Home / Business and Economy / Permethrin Market in Canada Estimated at $10M, Natroba Licensing Talks Ongoing

Permethrin Market in Canada Estimated at $10M, Natroba Licensing Talks Ongoing

9 Aug

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Summary

Permethrin market in Canada estimated at around $10 million
Natroba licensing discussions with interested parties, likely agreement by end of 2026
Firm exploring direct-to-consumer channels to increase Natroba market share

Permethrin Market in Canada Estimated at $10M, Natroba Licensing Talks Ongoing

According to the company's president, Bryan Jacobs, the Canadian market for the generic product Permethrin is estimated to be around $10 million. Meanwhile, the company's interim CEO, Craig Mull, revealed that the licensing discussions for the Natroba product are progressing well, with the likelihood of an agreement being reached by the end of 2026.

The company is cautious about the pricing of Natroba due to potential implications from the most favored nation pricing discussions. Additionally, the firm is approaching each state individually, often during contract renewals, to negotiate pricing and offer incentives for making Natroba a preferred product, similar to the strategy employed in Illinois.

The company's president, Bryan Jacobs, stated that the market for Natroba is about 30% Medicaid, and the firm aims to shift states from non-preferred to preferred status, which could significantly impact market share and revenue. While Natroba's market share has been stable, the company plans to gain market share through volume and price increases, as the product hasn't seen price hikes historically.

The firm is also exploring direct-to-consumer channels, which could provide measurable ROI, aligning with the acute nature of the product's demand. The company's capital allocation priorities include acquisitions, in-licensing, stock buybacks, and debt repayment, with a $65 million revolver available for potential acquisitions.

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