Fresh from closing the acquisition of Care Essentials, Medical Australia (ASX: MLA) has today signed a deal with
animal health company Medivet Pty Ltd to act as preferred sourcing and original equipment manufacturer for its products.
Medivet is headquartered in Sydney, Australia, with a global reach.
MLA has been appointed as the preferred sourcing and OEM partner for Medivet’s products, and in turn, MLA has appointed Medivet as its global distributor for all of its animal healthcare products.
The deal is expected to generate in excess of $3 million of annual revenue for MLA.
MLA has already been contracted to supply hardware and disposables for Medivet’s recently launched
Adipose Animal Stem Cell Procedure Kit, which allows veterinary surgeons to treat animals for a number of
degenerative diseases on site.
MLA believes this agreement with Medivet offers significant upside, and will be a catalyst to grow its presence in the pet care market – currently valued at $68 billion per annum in the United States and Canada, into which Medivet have recently launched. Medivet is also now expanding into the United Kingdom, parts of Asia, and South Africa, and this offers additional growth potential for MLA.
MLA’s chief executive officer Mark Donnison said, “This is a major opportunity for MLA, and while we are
already generating some sales resulting from this agreement, we are confident that the revenue upside will
be significant for the Company.
“We also see a great deal of potential from Medivet acting as a global distributor of MLA’s veterinary
product range and this gives us an additional growth channel into what is a very large market through a
well recognised and proven industry leader.”
“We already have in place the manufacturing capabilities and the scale to manufacture and supply
hardware and disposables for Medivet, and will therefore not require any capital expenditure to generate
this additional revenue.”
The chief executive officer of Medivet Shaneel Khan said the company was delighted to be partnering with
MLA as Medivet rolls out its Adipose Animal Stem Cell Procedure Kit. “Regenerative veterinary medicine is a very
large market in the US and Canada, and having MLA as a manufacturing partner will help us to fast track
our growth and become the industry leader in our space, he said.”
Mark Donnison said MLA was trading well and pursuing a number of additional growth opportunities. “In the human health market we are expanding aggressively internationally, and have recently signed up 11 new distributors including in Kuwait, Iran, Bahrain, Hong Kong, Indonesia, India and Sri Lanka.”
“We are also pursuing additional global OEM opportunities that will drive organic growth, and in the immediate term, our key priority is to complete the acquisition of the Care Essentials business. This transaction is progressing well.”