Business
Animalcare and Kane Biotech to target biofilms
Animalcare and Kane Biotech to target biofilms.
About this update from Animalcare Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 2216A\n Animalcare Group PLC\n 28 September 2020\n \n \n \n \n Animalcare and Kane Biotech to form animal health company to target biofilm-related ailments\n \n \n \n \n \n Animalcare to invest CA$5 million, consisting of CA$3 million to acquire one-third stake in STEM Animal Health, Kane Biotech's new animal health subsidiary, and a further CA$2 million for rights to commercialise products in global veterinary markets outside of the Americas\n \n \n \n \n \n Animalcare to launch biofilm oral care range for Companion Animals in European and Asian markets\n \n \n \n \n \n \n 28 September 2020.\n \n Animalcare Group PLC (AIM:ANCR) today announced that it has entered into an agreement with Canada-based biotech company Kane Biotech Inc. (TSX-V:KNE; OTCQB:KNBIF) under which the parties will form STEM Animal Health Inc. (\"STEM\"), a company dedicated to treating biofilm-related ailments in animals. \n \n \n \n \n \n The agreement will see Animalcare commercialise Kane Biotech's range of oral care products for companion animals in European and Asian markets and collaborate on the development of new biofilm treatments for animals.\n \n \n \n \n \n Under the terms of the deal, Kane Biotech will create a new subsidiary, STEM, in which Animalcare will invest CA$3 million in installments over a period of 48 months to acquire, on entering into the agreement, a one-third plus one share equity interest. STEM will be established with a global license over Kane Biotech's existing range of animal health oral care products and in collaboration with Animalcare will also focus on the research and development of novel animal treatments based on biofilm targeting technology. Animalcare will have licensing rights over future STEM products in Europe and Asia and the option, for a period of six years, to acquire an additional one-sixth stake in the subsidiary for CA$4 million, payable to Kane.\n \n \n \n \n \n STEM is designed to be self-financing from day one and will benefit from revenues already being generated in the US, Canada and South America as well as from Europe and Asia.\n \n \n \n \n \n Additionally, in exchange for Animalcare receiving the right to commercialise Kane's coactiv+TM and DispersinB® products in global veterinary markets outside the Americas, Animalcare wil...