Tyratech PLC (LON:TYR) is to restructure into two divisions focused on animal and human health respectively to help it capitalise on the potential in both businesses.
After carrying out a strategic review, Bruno Jactel, chief executive, said the company concluded that it did not have sufficient resources from operating cash flow alone to fund the next phase of its growth and unlock the full value of its assets.
That was despite a good year for Vamousse, its flagship anti-lice treatment, which saw sales rise 10% to US$5.9mln in the US and by 27% to £1.3mln in the UK.
Group net sales overall rose by 7% to US$7.2mln while loses for the year were slightly reduced to US$2.31mln.
Jactel said Vamousse had largely driven the improvement.
“The brand made substantial progress in 2016, increasing its market share and retail distribution in the UK and in the US.
“We added a major distributor, Rite Aid, in the US and placed new products in CVS and gained commitment to expand the offering at Walgreens in 2017.”
In animal health, Tyratech launched products in the equine and poultry segments with major distributors and the biggest producers of poultry and eggs in the US.
Jactel also believes the animal health business ultimately has larger growth opportunities, but further investment to support R&D will require either a partner and/or additional investment.
Consultants have been appointed with the aim of completing the reorganisation by the end of the financial year.
Vamousse is in the final stages of an external validation while an external validation of the value of the animal health business has just got underway.
In the short-term, Jactel said the focus will be growing Vamousse in the US and in the UK without major expansion in existing and new geographies and to roll-out the existing animal health products in the US.