Immuron strategic investment in leading gut health biotech Ateria Health
October 13 2022 - 6:00AM
Immuron Limited (ASX: IMC; NASDAQ: IMRN), an Australian based and
globally integrated biopharmaceutical company that has developed
two commercially available oral immunotherapeutic products for the
treatment of gut mediated diseases, is pleased to announce that it
has signed a strategic investment and option agreement with Ateria
Health Limited, a U.K. based company that has developed
ground-breaking product for the treatment of irritable bowel
syndrome (
IBS).
Steven Lydeamore, Chief Executive of
Immuron commented: “We are delighted to have agreed this
strategic investment in Ateria Health, which has developed and
distributes a ground-breaking gut health product for the treatment
of irritable bowel syndrome, JUVIA™. This investment allows Immuron
to further strengthen its position in the broader IBS market and
allows us to capitalise on opportunities working alongside Ateria,
both in the UK and Australia.
Immuron will continue to focus on its strategy
of expanding market verticals & product offering; growing its
existing customer base; expanding its distribution network and
sales & marketing of each product.”
Ateria Chief Executive Officer Neil
Wickers added: “We welcome Immuron as a strategic investor
in Ateria and look forward to exploring mutual benefits in
supporting our respective products in the UK, Australia and other
markets.”
Ateria Health overview
Ateria Health Ltd (Ateria) is a
U.K.-based health and wellness company that has developed a market
leading and novel IBS treatment product with distribution
capability in the U.K. and Australian markets with research
interests in Australia.
ERME™ is Ateria’s scientifically backed, and
patent protected ingredient. It is derived from barley and
comprises a mixture of natural plant-derived enzymes involved in
breaking down and metabolising foods. The first commercial product
is for the treatment of IBS. Ateria has launched its first brand
JUVIA™, targeting IBS sufferers in Q3 CY22 in the U.K. Ateria has
launched a direct-to-consumer platform (B2C) in
the U.K. market and is seeking to strengthen B2B and B2C
distribution of JUVIA™ through its partnership with Immuron in
the Australian and North American markets.Further details can be
found at https://ateriahealth.com/ and https://juvia.me/
Strategic rationale
The strategic investment advances Immuron’s
objective to enter the broader IBS market with leading products and
strengthen the distribution of Immuron’s Travelan® products through
B2C online platforms and pharmacy and retail channels
(B2B) in target markets.
The strategic investment aligns with Immuron’s
growth strategy and complements its existing travel diarrhea
products also focused on "gut health" as follows:
- Establishes Immuron’s position in
the large and fast-growing IBS market:
- Ateria Health has developed market
leading technology ERME™ for the development of products for the
treatment of IBS and other products that improve the gut
microbiome
- Global market for digestive health products is forecast to grow
from US $38 billion to $72 billion from 2019-27, at a CAGR of
7.9%1
- Ateria own ERME™ intellectual
property and has commercialised its first product JUVIA™
- Immuron’s upfront investment and
future investment linked to forecast financial performance and
board seat
- Potential complementary reciprocal
distribution agreement where significant synergies and cost savings
could be achieved versus Immuron developing its own direct to the
consumer platform and entry into the U.K. and Europe
- Utilise joint R&D capability
for the development of future products
Key terms of the subscription and option
agreement include:
- Upfront cash investment of £1.48m
funded from Immuron’s existing cash reserves. Completion will occur
upon satisfaction of conditions including completion of Immuron
confirmatory due diligence items and Ateria shareholder meeting to
be held on or about 28th October 2022
- Potential adjustment to share
percentage for Immuron dependant on Ateria's performance during its
CY2023
- Immuron offered one Ateria board seat upon completion
- Net proceeds will be used by Ateria
for the following:
- Product launch and ongoing product
marketing of JUVIA™
- R&D (further clinical trials)
for the JUVIA™ products
- Working capital
- Investment includes pre-emptive rights to maintain percentage
holding in Ateria
- Immuron has an option to invest a further £1.47m:
- This option expires on 31 July 2023
- Immuron offered a second Ateria board seat upon exercise of
this option
Possible distribution arrangements for
reciprocal distribution of Travelan® and
JUVIA™:While there are no binding
obligations on either party, Immuron and Ateria intend to explore
possible arrangements for:
- introduction of Ateria's
JUVIA™ product into the Australian market
- expanding Ateria's
JUVIA™ product into the USA and Canada; and
- possible expansion of Immuron's
Travelan® product sales into the U.K. and Europe markets
Both management teams recognise the value of
collaboration and partnership.
Immuron growth strategy and
outlook:As Immuron communicated in its FY22 results
presentation, the company has committed to a clear organic growth
and M&A strategy. This strategic investment into Ateria Health
is the first milestone in this journey.
Immuron’s M&A strategy is built on five
pillars:
- Expanding market verticals &
product offering
- Expanding existing customer
base
- Cost & Earnings Synergies
- Strength of IP and Management
- Distribution network and sales
& marketing by each product
The Company looks forward to keeping the market
updated on all material updates.
This release has been authorised by the
directors of Immuron Limited.
COMPANY CONTACT:Steven
LydeamoreChief Executive OfficerPh: +61 (0)3 9824
5254info@immuron.com
For more information visit: http://www.immuron.com
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https://www.fortunebusinessinsights.com/digestive-health-market-104750
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