Last checked at 16 Mar 2015 07:00
Venture Life Group plc
("Venture Life" or "the Group")
Sale of trademarks and material five year manufacturing agreement signed
Notice of results
Bracknell, UK - 16 March 2015: Venture Life Group plc (AIM: VLG), the international consumer products group addressing the self-care needs of the ageing population, announces that is has signed an agreement to sell a number of trademarks for one of its dermatology products to an existing customer ("the Agreement").
Under the terms of the Agreement the Group will receive an up-front cash payment, sales-based milestone payments and guaranteed additional manufacturing business through its Italian facility, Biokosmes, which is expected to generate an average of at least €500,000 in additional annual revenues for at least the next five years.
The trademarks being acquired by the purchaser from Venture Life cover a number of territories, including some territories where Venture Life already has distribution partners for the product. The purchaser will, where permitted, take over these existing distribution agreements from Venture Life. The Group's revenues from the distribution agreements expected to be transferred to the purchaser were £50,000 in the six month period to 30 June 2014. Venture Life has retained certain trademarks for the product, including those for the important markets of China and India.
The Group expects to receive its first additional order under the Agreement shortly and although there will be some additional manufacturing revenues expected during 2015, the main benefit will be felt from 2016 onwards.
Biokosmes has a long-standing commercial relationship with the purchaser who was one of Biokosmes's largest customers in 2014.
Jerry Randall, Chief Executive Officer of Venture Life, commented:
"This is a very good deal for both Venture Life and for one of our long-standing and important customers. Increasing volumes through our manufacturing facility and capitalising on the excellent operational leverage we have is a key element of our growth strategy. Accordingly the Group has taken a strategic decision to sell these trademark rights for one of our smaller product assets to a company that is better placed through its existing business and infrastructure to generate rapid revenue growth from the assets. However, through this agreement Venture Life will benefit from this growth through guaranteed additional manufacturing revenues for our facility in Italy, and together with the further strengthening of the relationship with the customer, this additional revenue is expected to make a material contribution to Group profitability over the minimum five year term of the agreement."
Notice of results
The Group's final results for the year to 31 December 2014 will be announced on 25 March 2015.
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For further information please contact:
Venture Life Group PLC | |
Jerry Randall, Chief Executive Officer | |
James Hunter, Chief Financial Officer | +44 (0) 1344 742870 |
Panmure Gordon (UK) Limited | |
Freddy Crossley / Duncan Monteith | +44 (0) 20 7886 2500 |
Corporate Finance | |
Tom Salvesen | |
Corporate Broking | |
Square1 Consulting | |
David Bick / Mark Longson | +44 (0) 20 7929 5599 |
Notes to editors
About Venture Life
Venture Life is an international consumer self-care company focused on developing, manufacturing and commercializing products for the ageing population. The Group's product range and pipeline currently include food supplements for lowering cholesterol and maintaining brain function, dermo-cosmetics for addressing the signs of ageing, and medical devices for improving minor aches and pains, dry eyes and itchy skin. The products, which typically are recommended by pharmacists or healthcare practitioners, are available primarily through pharmacies supplied by the Group's international distribution partners.
Through its manufacturing company, Biokosmes, the Group also provides development and manufacturing services to companies in the medical device and cosmetic sectors.
The Group's own branded products are currently sold or partnered in over 40 countries and currently include:
· food supplements to maintain brain function and memory;
· dermo-cosmetics for addressing the signs of skin ageing and hair loss, and
· medical devices for improving conditions such as minor aches and pains, dry eyes and itchy skin.
The Company has a healthy development pipeline including products in areas such as diabetes, cardiovascular health, obesity, cognitive function and skin ageing. Products coming from the pipeline will be expected to have intellectual property protection and be supported by independent clinical evidence of efficacy.