Shares of Veru Inc. VERU, +6.49% gained 6.5% in trading on Monday after the company said it is considering selling its female condom product. Veru hired Morgan Stanley & Co. as its financial advisor, saying the female condom business was no longer a strategic fit for the company now that it is advancing oncology and COVID-19 products through clinical trials. “It is clear that Veru has transformed itself into a premium, late-stage, clinical biopharmaceutical company, so the strategic fit with the [female health company] business is not as strong as it once was,” Dr. Mitchell Steiner, Veru’s president and CEO, said in a news release. The female condom business generated $41 million in net revenue in 2020, though the sexual health product, which is the only one of its kind, makes up less than 2% of total condom sales, according to comments made by Steiner during the company’s most recent earnings call via FactSet transcript. Veru’s stock has soared 238.6% over the past year, while the S&P 500 SPX, +0.76% is up 27.0%.
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