Dechra buys another 15pc of Medical Ethics in ?8m deal
By Josh White
Date: Friday 05 Jul 2019
(Sharecast News) - Dechra Pharmaceuticals has acquired a further 15% of the issued share capital of Medical Ethics, the parent company of Animal Ethics, for a total consideration of AUD 13.5m (£8m), it announced on Friday.
The AIM-traded firm said that following the acquisition, Dechra would hold 48.0% of the issued share capital of Medical Ethics.
It said that, since Dechra's initial investment was made, Medical Ethics had - through its subsidiary Animal Ethics - progressed the registration process for 'Tri-Solfen', which it described as a pain relief product for use in farm animals.
Once approved for major markets, Tri-Solfen should "significantly strengthen" the company's FAP portfolio, the board said, as well as further its geographical expansion strategy and enhance Dechra's reputation.
Following recent trials in south east Asia, Tri-Solfen had also been found to be a "highly effective" therapy for the recovery of cattle suffering from foot and mouth disease (FMD), resulting in improved body weight and production in affected cattle.
Phase two clinical trials for the application of venous leg ulcers in humans was also said to be progressing well.
The board said it believed that the value of the initial investment of AUD 18m in March 2017 to acquire 33% of the issued share capital of the company had increased "significantly".
"We are delighted to have increased our shareholding in Medical Ethics," said Dechra chief executive officer Ian Page.
"This investment will allow the founding shareholders to continue to commit themselves to the business throughout the next few years during its important development of both human and veterinary medicines."
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