Peptonic Medical: has reached an agreement to acquire all the assets of the Israeli company CommonSense Ltd (excluding bank balances and accounts receivable)

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The acquisition also includes the subsidiary registered in the United States CommonSense Marketing Inc, situated at new York. During the year 2020, CommenSense achieved sales of approximately $ 2 million. CommonSense Ltd has been in receivership since the start of July 2021. The acquisition charge is 300 TUSD plus the charge for existing inventory corresponding to 75 TUSD. The entire acquisition, including costs, is estimated at approximately 500,000 USD (4.4 million Swedish kronor). Payment will be made in October 2021.

CommonSense offers two products in the growing category of intimate self-diagnosis – VS-Sense for detecting bacterial vaginosis (vaginal discharge) and Al-Sense for detecting amniotic fluid leakage during the later parts of pregnancy. Peptonic sees great potential in both product areas. The solutions are based on extensive clinical evidence and patent protection and are unique in that the user can read the test itself with immediate feedback on the result. As for Al-Sense, there is no similar product on the market, which is why the assessment is that Al-Sense has the greatest long-term potential.

CommonSense Ltd was placed under public administration by Haifa court 2021-07-07. The underlying reason being a dispute between owners with a lack of mutual vision on how CommonSense should be developed further. In mid-July, Peptonic decided to carry out an assessment of CommonSense in order to assess a possible acquisition. The assessment resulted in a decision to bid for the assets of CommonSense Ltd, the offer included the subsidiary in United States. The American subsidiary had a cash register of a little over 100 TUSD at the beginning of September. In the agreement, Peptonic undertakes to start an Israeli subsidiary and to transfer to that entity the personnel, leases, contracts, patents, licenses and the American subsidiary.

Peptonic has identified a series of assets, which form the basis of the acquisition decision:

· The CommonSense portfolio is aligned with the long-term goal of the VagiVital brand, where the intention is to offer clinically proven intimate care that enables diagnosis, treatment and preventative care products.

· It is also in line with the company’s intention to expand its portfolio with relevant products in order to increase attractiveness to potential international business and distribution partners.

· There is a great need for this type of product on the market, ie self-diagnosis where the user immediately obtains the result. This is also evident when looking at CommonSense’s existing customer lineup, which includes Exeltis, Bayer, CVS, Walgreens and Primalabs. Some of these partners sell CommonSense products under their own brands.

· Regulatory values ​​and strategies. VS-Sense is CE marked and approved in the United States according to 510 (K). Al-Sense is also CE marked. Al-Sense can distinguish between leaking urine and amniotic fluid. Al-Sense thus reduces the worry of the pregnant woman and avoids the health systems of many visits and unnecessary costs. An independent report from NICE in England and interviews with the profession during the acquisition appraisal support this assertion. It is considered that Al-Sense should be a standard offering when it comes to maternity care. Al-Sense is not yet approved by the FDA in United States, however, there is a well-developed plan to get 510 (K) approval.

· CommonSense has had business pending throughout the receivership period and new orders have been received. The trustee calculated that the monthly loss was limited.

· CommonSense products are at the forefront of innovation and technology, which is also reflected in a large portfolio of patents. Al-Sense has a long shelf life remaining on its latest patents. In addition, there is valuable know-how in self-diagnosis, with interesting development potential. Future projects include a product capable of detecting urinary tract infections.

Israeli companies within MedTech enjoy a high reputation internationally. The staff have a high level of competence and Peptonic is committed to take over all employees in the new company by Israel.

· Commitment. As the existing CommonSense Israel staff voted for Peptonic as their successor, the assessment is that the staff want to stay with the company and will continue to be motivated.

On the organizational level, the future subsidiary in Israel turns into a production and development unit. Sales and marketing will be handled by Peptonic’s existing organization in the United States and Europe, which will translate into coordination gains and better use of resources.

The previous owners, a main owner family in the United States and a group of investors in Hong Kong have invested for a little over 10 years a total of 330 million Swedish kronor in the business. Much of the money was spent on development, production, and intellectual property, which generated valuable assets. According to Peptonic’s assessment, the ownership conflict combined with the aggravating impact of Covid-19 on the open assessment opportunities for an acquisition with a price well below the normal norm.

This disclosure contains information that PEPTONIC Medical AB is required to make public in accordance with the EU Market Abuse Regulation (EU No 596/2014). The information has been submitted for publication, through the contact person, the 06-10-2021 4:55 p.m..

For more information, please contact:

Erik Sundquist, CEO

Mobile: +46 722 499043

Email: [email protected]

Dan Markusson, CFO / COO,

Mobile: +46 768550200

Email: [email protected]

About VagiVital® AktivGel

VagiVital® AktivGel is a patent-pending hormone-free self-care product for the treatment of vaginal atrophy and vaginal dryness. The product has been tested in randomized clinical studies (vaginal atrophy) with very positive results both objective (vaginal pH and proportion of surface cells in the vaginal mucosa) and subjective (most troublesome symptoms, such as vaginal dryness, irritation vaginal / itching, dyspareunia and dysuria). The extent of symptom relief is comparable to that shown with, for example, prescription estrogen products on the market today. It was very well tolerated and caused no serious side effects.

VagiVital® AktivGel was launched in Sweden as an over-the-counter self-care product in july 2018. In April 2021 VagiVital® Moisturizing V Cleanser has been added under the brand name VagiVital®. (see www.vagivital.com).

On Peptonic Medical AB

Peptonic Medical AB (publ) is an innovative biomedical company that researches, develops and sells products in the field of women’s health. Our vision is to provide safe and effective treatments for diseases, medical conditions and well-being specific to women. Peptonic medical launched VagiVital® AktivGel in july 2018. It is a hormone-free product for the treatment of vaginal atrophy and vaginal dryness. The company’s development program also includes Vagitocin® – a product that contains oxytocin for the treatment of vaginal atrophy. Development of Vagitocin® has been suspended.

The company was founded in 2009 and the share has been traded since 2014 on Spotlight (www.spotlightstockmarket.com, short code: PMED) in Stockholm.

Since August 2020, Lune Oy Group Ltd. is a wholly owned subsidiary of Peptonic medical. The business concept of the company is to lead a menstrual revolution in a positive spirit. By focusing on sustainability, environmental issues and the promotion of sexual health, the company is evolving by taking the lead as a green intimate care company. For more information on Lunette®, visit www.lunette.com.

https://news.cision.com/peptonic-medical-ab/r/peptonic-medical-has-reached-an-agreement-to-acquire-all-assets-of-the-israeli-company-commonsense-l, c3428386

https://mb.cision.com/Main/11203/3428386/1477846.pdf

(c) Decision 2021. All rights reserved., source Press Releases – English


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