CNS (CNXS) bought some patents related to the FiberChoice brand for $8 million.
The Minneapolis-based company, which makes the Breathe Right strips used by athletes and people with sleep issues, said it bought the portfolio of domestic and international patents and patents pending from Onesta Nutrition. As a result, the companies have canceled their existing license agreement related to these patents.
The transaction was funded by CNS's existing cash balances, and is expected to be earnings neutral in the next fiscal year, ending March 31, 2007.
The patents and patent applications cover CNS's existing product line of FiberChoice fiber supplements and will begin to expire in December 2016. "The purchase of the FiberChoice patents demonstrates our commitment to further develop and grow this important brand within our portfolio," said CEO Marti Morfitt.
Net sales of FiberChoice-branded products through the first half of fiscal 2006 rose 86% from a year ago to $9.7 million. FiberChoice is currently available in original Orange and Assorted Fruit Flavored chewable tablets, and Fiber Drops. In addition, CNS has announced it will begin shipping two new FiberChoice-branded products to retailers in February: FiberChoice Plus Calcium chewable tablets and FiberChoice Weight Management chewable tablets.