SYDNEY: EVE Health Group (ASX: EVE) announced Monday it has agreed to acquire Australian biotech firm Nextract Pty Ltd, marking its entry into the $5.3 billion global erectile dysfunction market.
The deal, valued at $3 million in equity, is part of EVE’s shift from natural wellness products into regulated pharmaceutical and nutraceutical markets.
Nextract’s lead product is an alcohol-free, orally dissolvable strip for erectile dysfunction, designed to act within 15 minutes.
The company also develops chewable formats for established drugs like Tadalafil, aiming to streamline regulatory approvals by leveraging existing clinical data. EVE plans to target markets in Australia, the Middle East and North Africa (MENA), where demand for alcohol-free health products is high.
The acquisition includes a $1 million placement managed by Peak Asset Management to fund clinical development and regulatory submissions, with a commercial launch projected for late 2025. Shareholders will vote on the deal May 21, alongside a proposed 40:1 share consolidation to simplify EVE’s capital structure.
“Nextract’s technology accelerates our entry into pharmacy and clinical channels,” said outgoing CEO Bill Fry. Damian Wood, Nextract’s co-founder, will succeed Fry as managing director, bringing expertise in pharmaceutical formulation.
EVE, known for its Meluka probiotic brand, expects the acquisition to diversify revenue streams and improve margins through proprietary intellectual property. The global markets for erectile dysfunction and dysmenorrhea (period pain) are valued at $5.3 billion and $10.9 billion, respectively.