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A CUTTING-EDGE pain relief product that had its roots in the Australian sheep muelsing furore is poised for global expansion thanks to an $18 million injection from British company Dechra on Monday.
The company’s board announced to the market that it had entered a long term intellectual property licensing agreement with Animal Ethics, the Australian company focused on developing ethical pain relief for animals.
The agreement gives Dechra the rights to sell and market Animal Ethics’ product Tri-Solfen for all animal species in all international markets bar Australia and New Zealand.
Dechra chief executive officer Ian Page said he was delighted at securing the long term relationship with Animal Ethics, a deal that was years in the making.
“Once approved for major markets, Tri-Solfen significantly strengthens our food animal production portfolio, will further our geographical expansion strategy and will enhance Dechra’s reputation of providing clinically necessary, high quality, ethical veterinary pharmaceuticals,” Mr Page said.
A statement issued by Dechra and Animal Ethics put the global market potential at a conservative A$350 million.
“However, with the increasing focus on the ethical treatment of farm animals, this target could be exceeded once multi-species approval is achieved in the major markets,” the statement read.
Separate to the licensing agreement, Dechra has acquired 33 per cent of the issued share capital of Medical Ethics Pty Ltd (Medical Ethics), the parent company of Animal Ethics and its only principal subsidiary, for A$18 million. T
The sum will be split evenly between new equity to provide funding to Animal Ethics and to acquire existing shares from the current shareholders.
Under the terms of the agreement, Dechra will have a seat on the Medical Ethics’ Board and minority shareholder rights.
Australian success story
Animal Ethics is an Australian business that was incorporated in 2005.
The three founders and partners had the idea to improve animal welfare by reducing pain in farm animals during routine treatments such as castration, tail docking, debudding and dehorning in multiple species.
Successive trials, popularly championed by the late Queensland beef king Zanda McDonald, developed a topical product that is sprayed on to a wound, which simultaneously anesthetises, relieves pain, controls bleeding and protects against infection.
The Tri-Solfen product now has 35 patents granted across the majority of the world’s major animal health markets. Its primary use and area for initial development and regulatory focus is in sheep, pigs and cattle; however, other opportunities have been identified in horses and companion animals.
The product has already been successfully registered for sheep in Australia and is marketed by a global animal health company with current sales for this one application achieving $4 million annually.
The development process is under way to register the product in global markets, with initial focus being for pigs in Europe and pigs and cattle in the US; the first registrations are targeted for approval in 2020.
Strong future tipped
Animal welfare is becoming a major commercial and political issue for livestock industries.
Prior to the introduction of Tri-Solfen, the Australian wool industry was facing international wool boycotts and the EU and US pig and cattle industries are now facing similar conflicts from welfare advocacy groups, consumer groups and retailers, with the consequential legislative pressure to ban procedures without the use of anaesthetic.
The European Commission is currently undertaking a review with a view to creating an industry welfare quality standard for utilisation on product labelling.
Medical Ethics managing director Allan Giffard said the agreement was a huge win for animal welfare globally.
“The investment by Dechra will accelerate Animal Ethics’ program to develop urgently needed pain relief products for livestock animals globally,” he said.
“The partnership creates a wonderful opportunity for our company to pursue its mission to develop and deliver products that alleviate pain and minimise suffering associated with wounds and surgical procedures in livestock, companion animals and to progress Medical Ethics’ opportunity in humans.”
