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LTR Pharma (ASX:LTP) has made an interesting move from left of field on Monday – the erectile dysfunction nasal spray company, developing its flagship product SPONTAN currently available in Australia with a prescription but with no FDA approval yet, is moving into the Omega 3 fish oil game. A market which LTP described on Monday as “a multi-billion dollar” sector.
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The move is, by all reasonable measures, confusing. Especially given the company is moving into the fish oil sector via a 33% acquisition of a privately held company called LevOmega, which ABN lookup suggests was registered six days ago in NSW, and is co-founded by LTP alongside Levur and Green Blue Health.
It goes without saying that if you know something about this curious deal, shoot me an email. As for the forums, HotCopper users were mixed between curious about the deal, and cautiously optimistic.
It comes at the same time LTP’s 1Y returns are down -55%, a contrast to a recent past when LTP was an IPO darling (during a time of want) and one with insto backing.
Regardless, LTP described the fish oil market on Monday as “complementary” to its erectile dysfunction focus. Whether or not the company intends to make a nasal spray omega-3 product, as at least one HotCopper user asked, remains to be seen. But LTP did say it intends to leverage its acumen to “develop nature-identical, pharmaceutical-grade omega-3 oil” alongside Levur.
Notably, the company has inked an R&D services contract – suggesting, perhaps, this entire arc could be more about tax rebates while the company waits for an FDA approval.
Or at least, a cynical finance journalist might think that.
LTP last traded at 76.5cps.
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