LONDON: ECO Animal Health Group plc (AIM: EAH), a global animal health company with a growing portfolio of veterinary products, announced the sale of non-core product lines to its South African distribution partner for £491,000.
ECO, which focuses on disease treatment and prevention in pigs and poultry, sold ECOmectin licenses for use in sheep and cattle. These anti-parasitic treatments, specific to Southern Africa (South Africa, Botswana, Namibia, and Zambia), have been non-core to ECO. The partner has manufactured and sold these products under license for over 20 years, with royalties paid to ECO.
The £491,000 consideration was received in place of past and future royalties. No royalties were recorded for the year ended March 31, 2024.
The Board believes the transaction further focuses ECO on its core species and supports the development of its innovative pipeline of vaccines and preventatives. The funds will be partially invested in research and development for new products. Subject to shareholder approval, a portion will be used for a share buy-back to satisfy future employee share incentives.
David Hallas, CEO of ECO Animal Health Group plc, said, “The disposal aligns with our focus on swine and poultry and our R&D investment commitment. We are pleased the licenses will be developed by a dedicated owner. We continue to seek value-accretive licensing opportunities within and outside our portfolio and reinvest in the R&D pipeline for future growth.”