Dechra Pharmaceuticals PLC (LON:DPH) said 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$32mln (£18mln).
It means the vet products developer has the rights to sell Tri-Solfen, which is used to help farm animals with pain during routine treatments such as castration, tail docking, debudding and dehorning, in all international markets.
Under the agreement, the FTSE 250 firm will acquire the marketing authorisations and enter a long-term licensing partnership with Animal Ethics, which produces the anaesthetic and sells it in Australia and New Zealand, with current annual sales of £5mln.
Dechra will make an upfront payment of £2.8mln and dish out the rest once it has made its first commercial sale in Australia, expected in July 2021. It will also pay a royalty on all net sales.
In addition to cattle and sheep, the product is being developed for other species such as pigs, which are a primary focus especially in the EU.
Once the deal is completed, Dechra’s stake in Medical Ethics will be 49.5%.
Shares in Dechra rose 1% to 3,666p on Monday at the opening bell.
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