Dechra Pharmaceuticals announced on Monday that it has secured the rights to market Tri-Solfen in Australia and New Zealand. and has acquired a further 1.5% of Medical Ethics for AUD 32.5m (£18.1m).
The FTSE 250 firm said that now provided it with the rights to sell the veterinary pain management product Tri-Solfen in all international markets.
Under the agreement, Dechra said it will acquire the marketing authorisations and enter a long-term licensing agreement with Animal Ethics.
The agreement would provide Dechra with exclusive rights to sell and market Tri-Solfen, which is already registered for sheep and cattle and is sold in Australia and New Zealand with current annual sales of AUD 9.1m.
Under the terms of the deal, Dechra agreed to make an upfront payment of AUD 5m on signing, with the balance on the first commercial sale by Dechra into the Australian market, expected in July.
A royalty would also be paid on all net sales.
In addition to cattle and sheep, the product was being developed for other species, with the application for pigs being a primary focus, especially in the EU.
Following the acquisition from the current shareholders of the additional 1.5% of the issued share capital of Medical Ethics, the parent company of Animal Ethics, Dechra said it would hold 49.5% of the issued share capital of Medical Ethics.
“We are delighted to secure this agreement which now completes Dechra’s worldwide rights to sell and market this multi-species pain management product,” said chief executive officer Ian Page.
“Tri-Solfen significantly strengthens our FAP portfolio in Australia and New Zealand, will further our geographical expansion strategy and will enhance Dechra’s reputation of providing clinically necessary, high quality, ethical veterinary pharmaceuticals.”
At 0955 GMT, shares in Dechra Pharmaceuticals were up 2.43% at 3,714p.
