REG - Eco Animal Health Gp - Disposal of non-core product line

ECO Animal HealthAnnouncement

04/04/2024 07:00

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RNS Number : 2155J  Eco Animal Health Group PLC  04 April 2024

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."

-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 Consilium (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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