(Alliance News) -Â Dechra Pharmaceuticals PLC on Monday said it has secured the rights to market Tri-Solfen in Australia and New Zealand, and has acquired a further 1.5% stake in Medical Ethics Pty Ltd for AUD32.5 million, equivalent to around GBP18.1 million.
Under the deal, Dechra will acquire the marketing authorisations and enter a long term licensing agreement with Animal Ethics Pty Ltd. This will provide Dechra with exclusive rights to sell and market Animal Ethic's product, Tri-Solfen, which is already registered for sheep and cattle and is sold in Australia and New Zealand with current annual sales of AUD9.1 million.
Tri-Solfen reduces pain in farm animals during routine treatments.
The FTSE 250 veterinary products firm has agreed to make an upfront payment of AUD5 million on signing, with the balance of the payment on Dechra's first commercial sale into the Australian market, which is expected in July this year. A royalty will also be paid on all net sales.
In addition to cattle and sheep, the product is being developed for other species, with the application for pigs being a "primary focus", Dechra said, especially in the EU.
Medical Ethics is the parent company of Animal Ethics, and following the further 1.5% stake buy Dechra will hold 49.5% of Medical Ethics's issued share capital.
"We are delighted to secure this agreement which now completes Dechra's worldwide rights to sell and market this multi-species pain management product. Tri-Solfen significantly strengthens our FAP portfolio in Australia and New Zealand, will further our geographical expansion strategy and will enhance Dechra's reputation of providing clinically necessary, high quality, ethical veterinary pharmaceuticals," said Dechra Chief Executive Ian Page.
Shares in Dechra were up 1.0% at 3,662.00 pence in London on Monday.
By Lucy Heming;Â lucyheming@alliancenews.com
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