Completion of the Acquisition of Mirataz

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Dechra Acquires Worldwide Rights to the Mirataz® Product Portfolio

Further to the announcement on 17 March 2020, Dechra is pleased to announce that the acquisition of the worldwide rights of the Mirataz® product portfolio from Kindred Biosciences Incorporated has completed. The addition of Mirataz significantly enhances the Dechra portfolio and is fully complementary to its existing product offering to veterinarians.

Mirataz is the first and only FDA and EMA approved transdermal medication for the management of weight loss in cats, a major problem encountered by veterinarians and owners when treating other underlying medical conditions. Mirataz was launched in the US in July 2018 by KindredBio and the responsibility for sales in this market will transfer immediately to the Dechra US team. It has recently been approved in the EU for bodyweight gain in cats experiencing poor appetite and weight loss resulting from chronic medical conditions, and is expected to be launched in all European markets in the coming months. Mirataz is also in registration in other territories around the world. The acquisition is expected to be earnings enhancing for the financial year ending 30 June 2021.

Ian Page, Dechra’s Chief Executive Officer commented:
“We are delighted to complete the acquisition of the worldwide rights to Mirataz, a product that fits extremely well with our existing specialist portfolio. We recognise at this difficult time the importance of a strong balance sheet, however these opportunities are few and far between and it is important that we continue to strengthen the business for the future.”

Dechra Acquires Worldwide Rights to the Mirataz® Product Portfolio

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The Board of Dechra is pleased to announce that it has agreed terms to acquire the worldwide rights to the Mirataz® product portfolio from Kindred Biosciences Incorporated for a total consideration of USD43.0 million (£35.0 million)1, and a royalty on future sales.

The acquisition will be financed from the Group’s existing cash and borrowing facilities. Completion is expected before the end of June 2020 following the satisfaction of a number of completion deliverables.

The addition of Mirataz significantly enhances the Dechra portfolio and is fully complementary to its existing product offering to veterinarians.

Mirataz is the first and only FDA and EMA approved transdermal medication for the management of weight loss in cats, a major problem encountered by veterinarians and owners when treating other underlying medical conditions. Dechra is acquiring the worldwide marketing rights, the rights to the intellectual property, the marketing authorisations and associated regulatory documentation, supply contracts with third parties in relation to the raw material and manufacture of the finished product, and some existing inventory of the product. No other assets are being transferred to Dechra.

For the year ended 31 December 2019, the reported revenues for Mirataz were USD 4.1 million (£3.3 million) 1. The product, which was launched in July 2018 and is currently only marketed in the USA, is yet to reach maturity. It has recently been approved in the EU for bodyweight gain in cats experiencing poor appetite and weight loss resulting from chronic medical conditions, and is in registration in other territories. The acquisition is expected to be earnings enhancing for the financial year ending 30 June 2021, assuming completion before the end of June 2020.

Despite current equity market conditions and the rapidly changing developments regarding Covid-19, the Dechra business remains robust, with a strong balance sheet and strong cash flow.

Ian Page, Dechra’s Chief Executive Officer commented:
“We are delighted to acquire the worldwide rights to Mirataz. The product is an incredibly good fit with Dechra’s portfolio as many of the diseases that our current products treat can lead to weight loss in cats. The addition of Mirataz will allow us to offer a solution for veterinarians to manage unintended weight loss in cats and offer the best option for the pet whilst treating the underlying cause.”

Note:
1 Translated at USD 1.2277: GBP 1.0000 (closing rate on 16 March 2020)