ECO ANIMAL HEALTH GROUP PLC

M&A Activity • Feb 19, 2025

National Storage Mechanism | Additional information

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."

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For further information please contact:

ECO Animal Health Group plc David Hallas (CEO) Christopher Wilks (CFO)	020 8447 8899
Singer Capital Markets (Nominated Adviser & Joint Broker) Phil Davies Sam Butcher	020 7496 3000
Investec (Joint Broker) Gary Clarence Lydia Zychowska	020 7597 5970
Equity Development Hannah Crowe Matt Evans	020 7065 2692
ICR Healthcare (Financial PR) Mary-Jane Elliott Jessica Hodgson	020 3709 5700 ecoanimalhealth@consilium-comms.com

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

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