Dechra Pharmaceuticals PLC on Friday said it has acquired an additional stake in Medical Ethics Pty Ltd for around AUD13.5 million, taking its holding to just shy of 50%.
Veterinary pharmaceuticals firm Dechra paid around AUD13.5 million, or GBP8.0 million, for another 15% stake in Medical Ethics, an Australian privately owned research and development company specialising in wound care for livestock, pets, and humans.
In total, Dechra now owns 48% of Medical Ethics, parent company of Animal Ethics.
In 2017, Dechra acquired a 33% stake in Medical Ethics for AUD18.0 million, which was used to progress registration of pain relief product Tri-Solfen, which is used in farm animals.
Approval of Tri-Solfen is expected to “significantly strengthen” Dechra’s Food producing Animal Products portfolio and become part of its “geographical expansion strategy”.
Tri-Solfen has been recently trialled in south east Asia and was “found to be a highly effective therapy for the recovery of cattle suffering from foot & mouth disease resulting in improved body weight and production in affected cattle”.
Phase 2 clinical trials of the drug in venous leg ulcers in humans are also ongoing and “progressing well”.
Dechra believes the value of its initial AUD18.0 million investment “has increased significantly”.
“We are delighted to have increased our shareholding in Medical Ethics, 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,” said Dechra Chief Executive Ian Page.
The stock was up 0.7% at 2,852.00 pence early Friday in London