www.ecoanimalhealthgroupplc.com
ECO Animal Health Group plc is a leader in the development, registration and marketing of pharmaceutical products for global animal health markets. Our products for these growth markets promote well-being in animals. Our financial goals are achieved through the careful and responsible application of science to generate value for our shareholders.
Canada and US could provide over third of ECO Animal Health’s future market, says Cenkos
Canada and the United States can provide over a third of the potential world market for ECO Animal Health’s (LON:EAH) products, according to analysts at City broker Cenkos.
Yesterday the company announced that it had received a key approval for its Aivlosin product in Canada.
It revealed today that the Veterinary Drugs Directorate (VDD) of Health Canada has granted a marketing authorisation for Aivlosin 625 mg/g water soluble granules for pigs.
This formulation will be marketed for the treatment of an enteric disease of pigs, ECO said.
The firm said that this is the group’s first approval in North America and it marks a very important step in its development of Aivlosin as a global veterinary product.
“The US market is approximately ten times the size of the Canadian market. The first approvals for Aivlosin in the US are expected in the near future,” Cenkos analyst Ian Berry said in a note to clients.
“Submissions for the US have been made but final sign off is being held up by the FDA’s current backlog of work.
“We expect ECO to continue to produce step increases in PBT and EBITDA with the granting of new marketing authorisations and consequent product launches.
Additionally the analyst said that ECO shares currently look fairly valued. But once it has marketing authorisations in most of its major markets, notably the US, it will represent an attractive takeover target for international pharmaceutical groups.
According to Berry such an acquirer would be able to multiply ECO’s profitability several fold through distribution and marketing synergies.
“Any bid would most likely be a multiple of the current share price,” he added.
Chairman and chief executive Peter Lawrence said yesterday: “Following years of investment in regulatory applications in North America via our Princeton, New Jersey office, we are delighted to receive our first registration in this important continent.
“Canada and the USA represent more than one third of the world market for our products and this breakthrough will benefit our future profitable growth.
He added: “We expect our first approval from the FDA in the USA in the near future.
“This approval, coupled with our existing approvals in other countries, will in effect give us the rights to sell Aivlosin around the world. This will be another important step in making ECO one of the most important global animal health companies”.
According to ECO, Canada is currently enjoying an increase in its pig population following consolidation among producers, which bodes well for company. ECO has established its own company in Canada to help ensure a successful launch.
Aivlosin is a water soluble product which comes in the form of granules that dissolve readily in water. This enables a simple solution for the accurate and simultaneous treatment of large numbers of animals.
The company said that the new Canadian approval means that ECO can extend its marketing reach for Aivlosin.
ECO also noted that it will announce its interim results on Monday 12 December.
