Zila explores divestiture of nutraceutical business

June 9 - Zila Inc. (NASDAQ ZILA) on Thursday said it was exploring the possibility of divesting its nutraceutical business to focus more on its cancer detection business.

Zila said it had received several competitive offers for the business and was currently in negotiations with one party.

The nutraceutical business saw a 65 percent decrease in third-quarter net revenue to $3.6 million, Zila said.

The decline was due largely to lower sales to several customers during an evaluation of their strategic interest in acquiring the business, it added.

Zila Chairman and Chief Executive Douglas Burkett said in a statement that the company's plan to use the nutraceutical business to generate sufficient cash for its pharmaceutical and biotechnology business had worked.

It would now be "prudent to evaluate a more targeted focus" on its highest-potential products, he added.

Zila said it was also looking at the possibility of a strategic alliance or acquisition to provide additional strength and infrastructure to boost sales of its cancer detection products.