Last checked at 4 Apr 2024 07:00
4 April 2024
ECO Animal Health Group plc
("ECO" or the "Company")
Disposal of non-core product line
Disposal streamlines ECO Animal Health's product and pipeline focus
ECO Animal Health Group plc (AIM: EAH), a rapidly growing global animal health company with a portfolio of marketed veterinary products and a maturing proprietary R&D pipeline, today announces the disposal of ECOmectin® Horsepaste to ACME Drugs S.r.l in Italy ("ACME"), its long-term manufacturing partner, for a total consideration of €1.3m.
Continuing to streamline the business
ECO is focused on treatment and prevention of disease in pigs and poultry. ECOmectin® Horsepaste is a branded treatment for equine parasites based upon the ivermectin active ingredient and has for some time been non-core to the business.
The Transaction
ACME has acquired all the marketing authorisations held by ECO for the ECOmectin® Horsepaste, together with the intellectual property, manufacturing and distribution arrangements and existing inventory ("the Transaction"). The marketing authorisations are principally within the UK and EU. In addition, ACME has been granted a trademark licence to market and sell the horse paste under the ECOmectin® brand.
The total consideration for the Transaction is €1.3m; €500,000 was paid on signature of the sale and purchase agreement with an undertaking to pay two further payments of €400,000 each on the date which is 18 months after completion and 36 months after completion. These two elements of deferred consideration are unconditional and supported with a bank guarantee which will be put in place within 45 days.
The revenue derived from this business in the year ending 31 March 2024 was £814,000 (2023 £988,000).
Reinvesting to support our pipeline
The Board believes that the Transaction further streamlines ECOs focus on its core species of pigs and poultry and in particular on developing its highly innovative pipeline of vaccines and preventatives. It is intended that the funds received from the Transaction will be invested in research and development to support new product development.
David Hallas, Chief Executive Officer of ECO Animal Health Group plc, commented: "The disposal of ECOmectin® Horsepaste is in line with our stated intention of focusing on treatments and preventatives in pigs and poultry and this enables us to increase investment in our R&D pipeline. The brand and the broader business is a good fit for ACME Drugs S.r.l and we are pleased that the business will be taken forward by a committed owner.
"We continue to look for value accretive opportunities both within our portfolio and outside and for opportunities to reinvest in our R&D pipeline to support future growth."
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About ECO Animal Health
ECO Animal Health is a world leader in animal health, developing and marketing branded veterinary pharmaceuticals globally, with expertise in antibiotics and vaccines for pigs and poultry. We have a maturing proprietary R&D pipeline.
Headquartered in the UK, with global offices including R&D and manufacturing, we have marketing authorisations in over 70 countries and employ over 200 people worldwide.
Our lead product, Aivlosin® is a proprietary, patented medication which is effective against both respiratory and intestinal diseases in pigs and poultry.
Click here for more information: https://ecoanimalhealth.com