REG - Eco Animal Health Gp - Disposal of non-core assets

ECO Animal HealthAnnouncement

19/02/2025 07:00

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RNS Number : 5961X  Eco Animal Health Group PLC  19 February 2025

19 February 2025

 

 

ECO Animal Health Group plc

("ECO" or the "Company")

 

Disposal of non-core product lines

Disposal further 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 certain non-core
product lines to its distribution partner in South Africa for a total
consideration of £491,000 (the "Transaction").

Continuing to streamline the business

ECO is focused on treatment and prevention of disease in pigs and poultry. The
ECOmectin licences disposed of in the Transaction are for use in sheep and
cattle and include a range of anti-parasitic treatments and have for some time
been non-core to ECO.  All licences are specific to Southern Africa (South
Africa, Botswana, Namibia and Zambia). ECO's distribution partner has
manufactured and sold these products under licence for over 20 years and
royalties were paid to ECO.

The Transaction

Consideration of £491,000 was received in lieu of pro-rata past and future
royalties. Nil royalties were recorded in the year ended 31 March 2024.

Reinvesting to support our pipeline

The Board believes that the Transaction further streamlines ECO's 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 partly invested in research and
development to support new product development. It is also intended that,
subject to shareholder approval, a portion of the consideration will be used
in a share buy-back to satisfy the future potential vesting of employee share
incentives.

David Hallas, Chief Executive Officer of ECO Animal Health Group plc,
commented: "The disposal of these non-core assets aligns with our focus on
swine and poultry and our commitment to invest in our R&D pipeline. We are
pleased that the licences will be further developed by a committed owner.
 

"We continue to look for value accretive licensing opportunities both within
our portfolio and outside and for opportunities to reinvest in the R&D
pipeline to support future growth."

-Ends-

For further information please contact:

 ECO Animal Health Group plc                                    020 8447 8899

 David Hallas (CEO)

 Christopher Wilks (CFO)
 Singer Capital Markets (Nominated Adviser & Joint Broker)      020 7496 3000

 Phil Davies

 Sam Butcher
 Investec (Joint Broker)                                        020 7597 5970

 Gary Clarence

 Lydia Zychowska
 Equity Development                                             020 7065 2692

 Hannah Crowe

 Matt Evans
 ICR Healthcare (Financial PR)                                  020 3709 5700

 Mary-Jane Elliott                                              ecoanimalhealth@consilium-comms.com

 Jessica Hodgson

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
(https://ecoanimalhealth.com)

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