The decision will result in significant cost savings, states the company. Acquired in 2021 alongside the US-based company Common Sense Marketing, the Israeli manufacturing organization has encountered profitability challenges and increasing operational complexities in Israel. Going forward, Peptonic plans to partner with an external contract manufacturer, while retaining Common Sense as a strategic asset to drive growth in the US market.

The Israeli manufacturing organization has encountered profitability challenges and increasing operational complexities in Israel.

The Israeli subsidiary has served as a manufacturer for the self-diagnostic tests AL-Sense and VS-Sense during the acquisition period. An external contract manufacturer is now intended to be contracted for the production of its self-diagnostic tests, increasing flexibility and reducing production costs.

The closure of the subsidiary is expected to have a minor negative impact on Peptonic’s results due to the write-down of receivables and shares in the subsidiary. At the same time, closing the manufacturing unit will lead to significant cost savings starting in the first quarter of 2025, thereby strengthening Peptonic’s cash flow and liquidity, the company states.

Peptonic will retain key assets from the acquisition, including the US-based Common Sense. The US remains Peptonic’s most important market for driving sales growth of its portfolio of intimate self-care products, positioning Common Sense as a central element in Peptonic’s growth strategy, it states. Through its established platform, Common Sense supports Peptonic’s direct sales strategy for VagiVital and maintains valuable partnerships with major partners such as Bayer, CVS, Walgreens, Walmart, and Paladin Labs.