Leading international sports nutrition company MusclePharm announced it has completed its acquisition of essentially all assets of BioZone Pharmaceuticals and its subsidiaries in exchange for 1.2 million shares of MusclePharm stock.
According to the terms of the agreement, MusclePharm has, through newly formed Nevada subsidiary Biozone Laboratories, Inc., acquired BioZone’s Richmond, Calif., manufacturing facility; all assets associated with BioZone’s QuSomes, HyperSorb an EquaSome technologies; the company’s Baker-Cummins line of products; and the name BioZone.
“We believe that BioZone is a complementary fit for MusclePharm, providing substantial opportunities to further enhance our science and quality control systems as well as advance our innovation capabilities, which will add sophistication to the sports nutrition market,” said MusclePharm CEO Brad Pyatt. “We also believe that it gives us a long-term roadmap to eventually take control of our manufacturing and allow MusclePharm to be a fully integrated company.”
MusclePharm is evaluating BioZone’s patented QuSomes technology, which enhances the absorption of topical and other drugs, to determine if combining QuSomes with nutritional supplements could enhance the absorption and speed-of-delivery in several of MusclePharm’s products.
MusclePharm managers believe acquiring BioZone will provide an opportunity to bring science, innovation and sophistication to the sports nutrition market and will enable meaningful cost savings through utilizing existing BioZone facilities in northern California, establishing a new West Coast distribution center for MusclePharm products. The company also believes the acquisition will provide an opportunity to realize significant cost savings through internalizing and consolidating MusclePharm’s product quality control programs, which are currently being outsourced, as well as the ability, over time, to internalize various manufacturing components of the company’s products.
For more information, visit www.musclepharmcorp.com
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