Animal health business drives growth with new partnership
Animalcare Group the listed animal health business has announced it has entered into an agreement that will drive future growth with a Canadian biotech business.
The deal between the York-based business and Kane Biotech will see the Yorkshire firm invest $5m to acquire a one third take in STEM Animal Health, a new animal health subsidiary of Kane Biotch and also receive the rights to commercialise products in global veterinary markets outside the Americas.
Under the terms of the deal Animalcare will invest CA$3 million in instalments over a period of 48 months in STEM. With the subsidiary having a global license over Kane Biotech’s existing range of animal health oral care products and focus on research and development of novel animal treatments based on biofilm technology in collaboration with Animalcare.Jenny Winter, chief executive officer of Animalcare commented: “Our collaboration will bring the benefits of Kane Biotech’s anti-biofilm oral and skin care technology to more animals and their owners in more countries around the world. The agreement complements Animalcare’s existing portfolio and drives our future growth strategy by leveraging the Group’s knowledge of our veterinary markets while combining our expertise and resources with Kane Biotech to develop new, differentiated and much-needed solutions to prevent and treat infections.
“The creative structure of the deal befits Kane Biotech’s innovative biofilm technology and underlines the commitment of both parties to a long-term sustainable commercial relationship.”
Marc Edwards, president and chief executive officer of Kane Biotech said: “We are very excited to partner with Animalcare to establish an animal health company dedicated to treating biofilms, while further expanding our footprint globally. This agreement provides STEM Animal Health, Kane Biotech’s first commercialisation vehicle, with capital at a valuation that is highly attractive and non-dilutive to existing Kane shareholders. This will accelerate our product development and commercialisation globally and is a major step towards defining Kane Biotech as the preeminent global leader in biofilm research and product development. In the months to come, we plan on establishing additional commercialisation vehicles for both our wound care and our consumer goods businesses.
“Animalcare has more than 30 years of experience successfully developing, launching and marketing animal health products, so we believe this agreement provides further validation of the strength of our animal health product portfolio and the anti-biofilm technology on which it is based. In addition to Animalcare’s many years of commercial success, its strong relationships with veterinary professionals and focus on customer service makes Animalcare an ideal partner.”