EVE Health to enter global therapeutics space with $3m Nextract acquisition
EVE Health (ASX: EVE) will execute a change in direction from functional foods to regulated health markets with a $3 million acquisition of biotech company Nextract and its oral delivery technologies.
Nextract’s lead product is an alcohol-free, orally dissolvable film with a 15-minute therapeutic onset designed to address the US$5.3 billion global erectile dysfunction market.
A second product candidate addresses dysmenorrhoea (or period pain), which makes up a US$10.9b global market.
Commercial launch
EVE Health commenced its integration planning of Nextract’s products during the March quarter and is targeting a national commercial launch before year-end through Australia’s Special Access Scheme and Authorised Prescriber pathways.
The company said the Middle East and North Africa region also represented a significant opportunity due to growing demand for high-quality, accessible health products and a strong cultural preference for alcohol-free formulations.
“As a region with a predominantly Muslim population, compliance with alcohol-free standards is ideal for market acceptance and positions Nextract’s products as highly suitable for this region,” the company said.
The Middle East and North Africa have experienced rising investment in pharmaceutical and wellness infrastructure in recent years.
Enhanced capabilities
EVE Health expects the Nextract acquisition to enhance its technical capabilities across pharmaceutical formulation and solubility science in support of broader strategic initiatives.
The company will also explore opportunities to leverage Nextract’s expertise to assess regulatory pathways for its flagship health and wellness brand Meluka Australia, which focuses on gut health solutions via a direct-to-consumer platform.
This will include the positioning of selected products for Therapeutic Goods Administration approval and listing over time.
Financial performance
EVE had $300,000 cash on hand at end March and had received firm commitments to raise $1.5m through a share placement and purchase plan.
Receipts from customers for the period totalled $340,000, slightly lower than the December quarter, while product manufacturing and operating costs remained stable at $300,000.
Advertising and marketing expenses were steady at $300,000 and net cash used for operating activities decreased to $400,000 (from $600,000 in the previous period).