EVE Health Group completes takeover of Nextract, strengthens executive team

EVE Health Group (ASX: EVE) has completed its strategic acquisition of biotech company Nextract in a major product growth move by the company.

The successful purchase adds significant development upside in the $8.1 billion erectile dysfunction (ED) market, with Nextract’s lead product targeting therapeutic onset within 15 minutes of dosage.

Nextract is developing proprietary oral strip and chewable dosage formats for well-established active pharmaceutical ingredients including Tadalafil, which has been safely used for many years.

‘Serious player’

“With Nextract now part of the group, we are positioned to accelerate our transition into a serious player in regulated healthcare,” chair Rodney Hannington said.

In the lead-up to finalising the takeover, EVE recently commenced stability testing on Nextract’s lead products for the treatment of ED and dysmenorrhoea, a condition characterised by painful menstrual cramps.

Stability testing is a mandatory requirement under pharmaceutical product research and development guidelines and provides critical data on product shelf life and integrity under various environmental conditions.

The results will form a core component of the technical dossier the company will be submitting to the Therapeutic Goods Administration.

Transaction details

The transaction, initially announced in April, involved the issue of 83.33 million fully paid ordinary EVE shares at a post-consolidation price of $0.036 per share and received shareholder approval on 29 May.

To help fund the deal, EVE has also completed a $1 million placement to sophisticated and professional investors, issuing 27.78 million shares at the same price and the company has revealed plans for a share purchase plan to raise up to $500,000.

Proceeds from the raisings will fund Nextract’s integration, initial manufacturing scale-up and regulatory submissions.

Key appointments

To ensure a smooth transition, EVE has appointed Nextract founder Dr Stuart Gunzburg as chief scientific officer and executive director.

Dr Gunzburg’s expertise in formulation technologies will help him lead the company’s research and product development efforts.

Damian Wood will take on the role of chief executive officer upon completion of the transaction and following the conclusion of his current contractual commitments.

Mr Wood has significant experience across clinical formulation, regulatory approvals and commercialisation strategy.