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RNS Number : 7804H
Venture Life Group PLC
06 August 2021
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 which is part of UK law
by virtue of the European Union (Withdrawal) Act 2018.
For immediate release
Venture Life Group PLC
("VLG" or the "Company")
Acquisition of Brands and Assets from Helsinn Healthcare SA
Venture Life Group PLC (AIM: VLG) ("VLG") a leader in
developing, manufacturing and commercialising products for the
international self-care market, announces that it has acquired a
series of oncology support product assets from Helsinn Healthcare
SA (the "Brands") for a total consideration of 6 million CHF
(approximately GBP4.7 million) (the "Acquisition"). The Acquisition
is expected to be immediately earnings enhancing.
The Acquisition comprises three on-market products within the
area of oncology support, as well as all the associated IP and
existing customer relationships in relation to the Brands.
The three on-market products are:
-- Gelclair - a muco-adhesive oral rinse gel used for the
management of painful symptoms of oral mucositis (side effect of
some cancer therapies). Gelclair is a registered medical device and
is currently partnered in 40 countries;
-- Pomi-T - a Polyphenol rich mix of wholefoods used for the
management of prostate specific antigen (PSA) levels in prostate
cancer. Pomi-T is a registered food supplement and is currently
partnered in 22 markets; and
-- Xonrid - a Hyaluronic acid based topical gel used for the
prevention and treatment of radiation induced dermatitis. Xonrid is
a registered medical device and currently partnered in 21
countries.
For the year ended 31 December 2020, the Brands generated gross
profit of GBP1.3m on sales of GBP2.5m. Revenues for the 2020
financial year were impacted by the Covid pandemic which saw a
reduction in oncology treatments due to lockdown, however, the
Board expects the revenues of the Brands to benefit from the
reducing effects of the pandemic and the increase of oncology
treatments back to pre-Covid levels.
The Brands are sold exclusively through distribution partners
around the world. VLG already has good long-term relationships with
some of the Brands' partners. The Board believes that there is a
sizeable opportunity to expand the Brands' geographical footprint
via VLG's existing relationships with many of the Brands' current
partners as well as cross-selling within the current VLG business.
The Board also considers that there is a further opportunity to
develop additional new products for this nascent oncology support
category within VLG.
VLG has been the contract manufacturer of Gelclair since 2000
and of Xonrid since 2018 and, as such, the Board expects the
integration of the Brands into VLG to be relatively
straightforward. Furthermore, the Acquisition comes with the
support of a transitional services agreement for a period of up to
21 months for the regulatory aspects required during the transition
from the Medical Device Directive (MDD) to the new Medical Device
Regulations (MDR) in the EU.
The total consideration paid for the Acquisition is 6 million
CHF, 3 million CHF payable on completion and an unconditional 3
million CHF payment due 12 months post completion. The
consideration payable will be funded from a combination of cash
reserves and the Revolving Credit Facility ("RCF") announced on 21
June 2021. Remaining cash reserves plus subsequent cash generation,
along with the remaining RCF available, will give considerable
firepower to continue our brand acquisition strategy.
Jerry Randall, CEO commented: "I am delighted to announce
another acquisition in pursuit of our progressive strategy to
develop the Group through selective acquisitions of exciting and
immediately earnings enhancing assets. Oncology support has been an
area of interest in recent years for VLG as a potential growth area
in an under-served market. Oncology patients and their healthcare
practitioners look for products that provide effective relief from
the painful side effects of oncology treatments.
The Brands we are acquiring are well established Brands, backed
by good clinical data and already have meaningful revenues in many
countries. We believe we can broaden the portfolio and offering,
leveraging our in-house capabilities and expertise in medical
devices and our geographic reach.
Gelclair is partnered in 40 countries already and we have
existing relationships with some of its partners. There is the
opportunity to further expand its geographic footprint and recently
a new Japanese partner has achieved registration and is expected to
launch the product in 2021. Pomi-T is less widely distributed, in
22 countries, as it was only launched in 2017, but again we believe
there is a good opportunity to expand this interesting product
further geographically.
The addition of the Brands to the Group brings meaningful
additional revenue and profitability for the future."
For further information, please contact:
+44 (0) 1344
Venture Life Group PLC 578004
Jerry Randall, Chief Executive Officer
+44 (0) 20 7397
Cenkos Securities plc (Nomad and Joint Broker) 8900
Michael Johnson / Russell Kerr (Sales)
Stephen Keys / Camilla Hume (Corporate Finance)
Singer Capital Markets (Joint Broker)
Jonathan Dighe (Sales) +44 (0) 20 7496
Shaun Dobson / Alaina Wong (Corporate Finance) 3000
About Venture Life ( www.venture-life.com )
Venture Life is an international consumer self-care company
focused on developing, manufacturing and commercialising products
for the global self-care market. With operations in the UK, The
Netherlands and Italy, the Group's product portfolio includes some
key products such as the UltraDEX and Dentyl oral care product
ranges, food supplements for maintaining brain function, medical
devices for women's intimate healthcare, fungal infections and
proctology, and dermo-cosmetics for addressing the signs of
ageing.
The products, which are typically recommended by pharmacists or
healthcare practitioners, are available primarily through
pharmacies and grocery multiples. In the UK and The Netherlands
these are supplied direct by the company to retailers, elsewhere
they are supplied by the Group's international distribution
partners.
Through its Development & Manufacturing business in Italy,
Biokosmes, the Group also provides development and manufacturing
services to companies in the medical devices and cosmetic
sectors.
Forward-looking Statements
This news release contains forward -- looking information. The
statements are based on reasonable assumptions and expectations of
management and VLG provides no assurance that actual events will
meet management's expectations. In certain cases, forward --
looking information may be identified by such terms as
"anticipates", "believes", "could", "estimates", "expects", "may",
"shall", "will", or "would". Although VLG believes the expectations
expressed in such forward -- looking statements are based on
reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those projected.
Company website
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