Eco Animal Health Share Discussion Threads

[smelleroo] 10/3/2010 20:04

ariane,
i see this is from proactive investors. who is the author Michael Sweeney?

smell

[ariane] 10/3/2010 08:59

Eco Animal Health Group: moves into US and China could be transformational
by Michael Sweeney

ECO Animal Health Group (AIM: EAH) is a specialized veterinary drug company and a leader in the development, registration, and marketing of pharmaceutical products for global animal health markets. With a careful and responsible application of science, ECO delivers products to promote animal well-being and sustainable productivity. ECO's proprietary patented drug is Aivlosin®, which is a macrolide antibiotic for the treatment of respiratory and enteric diseases in pigs and poultry. Aivlosin targets a wide range of diseases that span from enzootic pneumonia to swine dysentery. The drug has been approved for use in pigs and poultry in Europe, South Africa, Japan, Asia, and South America. ECO expects to receive approvals this year for use in pigs in the United States.

The Company now holds over 600 marketing authorizations in over 50 countries, and has developed strong relationships with distribution partners globally. With 100 employees located in five offices around the world and £19.3 million in revenues for FY 2009, the Company's products are recognized as offering security to both distributors and end users.

Investment Thesis

Aivlosin® now accounts for more than half of global sales for ECO. Sales in China during FY 2009 were more than 60% ahead of the previous year, and expectations for FY 2010 indicate similar progress. China is the largest market opportunity for ECO products in which it has a joint venture for sales and marketing ("ECO-BIOK"), and ECO is currently examining other joint in China. The Company is working on launch and distribution plans for the U.S. market, expecting to receive first marketing authorizations for Aivlosin from the Food and Drug Administration (FDA) in 2010.

ECO is forecast by Cenkos Securities to increase its revenues to £22.4m in the FY March 31, 2010 and to £28.5m in 2011. EBITDA plus share-based payments and exceptional items are estimated at £3.6m and £5.3m respectively, which should translate to earnings per share of 4.7 pence and 7.4 pence. Cenkos expects ECO to produce step increases in earnings as new marketing authorizations are granted and new products are launched. Additionally it expects ECO's capital expenditure to fall substantially as the product registration program nears completion, resulting in increased cash flow.

ECO's first half revenue from 4/1/09 to 9/30/09 rose 11% year to £8.9 million, while EBITDA jumped 32% to £1.94 million. The group had net cash of £3.2 at the end of the period. The increase in revenues was largely due to stronger sales of Aivlosin, which rose 10% after further marketing authorizations were secured in Europe. ECO has offered an upbeat outlook for the rest of FY 2010 (FYE is 3/31/10), as they expect business performance to improve further and projecting that Ecomectrin sales would pick up in the second half of the year.

In 2009, EBITDA plus share-based payments and exceptional items increased 66.9% to £3.74 million (2008: £2.24 million). ECO paid a total dividend of 7.15 pence per share in 2008 and 2009, and it generated £3 million in cash from operating activities during 2009.


ECO's Core Products

Aivlosin® is ECO's proprietary patented macrolide drug, and it contains the innovative antibiotic Tylvalosin, The inclusion of Tylvalosin allows the drug to rapidly be absorbed and concentrated in target tissues to provide proven control of major respiratory and enteric diseases in both pigs and poultry. It is highly effective against a range of economically substantial diseases in pigs and poultry including:


• Enzootic Pneumonia
• Ileitis/PPE
• Swine Dysentery
• Mycoplasmosis
• ORT
• Necrotic Enteritis

ECO continues to explore other potential uses of Aivlosin in production animals beyond pigs and poultry, such as cattle and horses. In June 2008, ECO was granted a marketing authorization from the European Commission for Aivlosin® granules for oral solution for poultry. It is the rapid absorption of Aivlosin® which results in a swift resolution of the disease and a fast return to productive health that makes it profitable for farmers to use when compared with older generation treatments. This authorization allows Aivlosin® to be marketed in Europe for the treatment and prevention of mycoplasmal respiratory disease in poultry, a segment estimated to be worth over £10 million per annum at the manufacturer level.

In March 2009, ECO announced that it had received a positive opinion from the Committee for Medicinal Products for Veterinary Use of the European Medicines Agency for the use of Aivlosin® granules for oral solution for medicated drinking water for pigs. The Aivlosin® granules dissolve readily in drinking water thus enabling the rapid, accurate and simultaneous treatment of large numbers of pigs that are more likely to drink than to eat. This will allow Aivlosin® to be marketed throughout Europe for the treatment and prevention of ileitis. It is estimated that this market segment is worth £18 million per annum at manufacturer level.

Generic Drugs - ECO is also making progress in its development of a new range of generic medications for pets, adding to its existing Ecoheart dog heartworm tablet and Ecomectin horse paste products. ECO has a number of generic drugs including Ecotraz and Ecomintic (endectocides & other antiparasitics) for the treatment and prevention of parasites in cattle, sheep, pigs, horses, and dogs. For the treatment of bacterial infections in pigs, poultry & cattle, ECO owns and distributes Chlortet and Oxytet. ECO has been granted a marketing authorization in Mexico for Ecoheart Chewable Tablets for dogs. Ecoheart tablets prevent heartworm disease and are also effective in the treatment and control of roundworms and hookworms in dogs. Canine heartworm infection is transmitted by mosquitoes. It is potentially fatal and requires a monthly preventative treatment. Ecoheart Chewable Tablets is the first companion animal product for which ECO has received a marketing authorization in Latin America where the pet sector is an important and growing market. Further marketing authorizations in the key markets of the region are expected.

Research - ECO plans to build on the collaborative research deal it signed in 2006 with the University of Cambridge to investigate new potential indications for Aivlosin. Studies already completed have indicated that Aivlosin appears to prevent the replication of certain common viruses, including influenza, in laboratory test systems, without damaging cell cultures. Researchers at the Virology Division of the university's Department of Pathology have been awarded a £500,000 grant by the UK Medical Research Council to extend their work investigating inhibition of influenza viruses, and ECO's management believes that this work could have far reaching and exciting commercial applications for the firm.

Prospects for the Future

In a very difficult economy, ECO has performed very well. Now with markets in China opening and the U.S. expected this year, ECO has the potential to make even more progress. This should be a real launching pad for the Company. While there is a risk for ECO in the amount of revenues coming from one product, it does appear to have a loyal and growing following around the world.

[smelleroo] 09/3/2010 22:03

illiquid stock, fallen or very small volume

fundamentals firmly intact

smell

[maxchampagne] 09/3/2010 21:35

I am looking to buy in. The share drop has been a surprise and a little hard to explain apart from a lack of media/pi interest.

[audigger] 09/3/2010 20:54

Very quiet on here as folks sit back and watch the share price decline by circa 36%. Has left me nursing a significant paper loss. However, assuming the fundamentals haven't changed, I remain optimistic about the outlook. Having said that, I'm very close to my stop-loss. It was the 30K trade that prompted me to post. Are the big boys about to buy-in ahead of news on the FDA approval? Was the share price walked down to help this? I'm very tempted to add at this price, but I first need to be reassured that there isn't any bad news behind the big fall in share price I would have expected the company to comment if there were, which again makes me think that this may be about to fly on the back of good news. The joys of AIM shares!

[aim_trader] 03/2/2010 14:19

Old news but never the less

Friday, November 27, 2009

Cenkos says ECO Animal Health made solid progress in H1, maintains 'buy' stance

"...According to Cenkos, ECO is also making progress in its development of a new range of generic medications for pets, adding to its existing Ecoheart dog heartworm tablet and Ecomectin horse paste products. The broker expects these developments to start contributing to revenues in 2011.

Cenkos expects ECO to produce step increases in earnings as new marketing authorisations are granted and new products are launched. Additionally it expects ECO's capital expenditure to fall substantially as the product registration programme nears completion, resulting in a highly cash generative business."

[audigger] 03/2/2010 06:46

Well I was wrong about the slow climb back to 200! Encouraging to see ECO extending in to LATAM. Would like to hear the company's current view on projected sales in light of several recent product approvals. Would also be good to have some insight in the the FDA timeline as they must know roughly when their data package will be evaluated.

[audigger] 21/1/2010 07:42

Marked-up before opening today. Looks like things are warming-up as we climb slowly back to 200 plus.

[smelleroo] 15/1/2010 08:51

not another one

smell

[waldron] 15/1/2010 08:47

Regulatory Approval





TIDMEAH

ECO Animal Health Group plc 15 January 2010


ECO RECEIVES REGISTRATION APPROVAL
FOR TWO NEW AIVLOSIN® PRODUCTS


On 26 and 29 October 2009 ECO Animal Health Group plc announced that its
subsidiary ECO Animal Health Limited (ECO) had received positive opinions from
the European Medicines Agency (EMEA) for two new products:

· A concentrated form of Aivlosin® oral powder for pigs

· Aivlosin® granules for oral solution for medicated drinking water for
pheasants

ECO is now pleased to report that the European Commission has granted
registration approval for both these products and this allows the company to
commence active marketing of them throughout Europe.

The European Commission's approval marks yet another important step in ECO's
continuing development of Aivlosin as a global veterinary product. It will
further extend the marketing reach of Aivlosin®, ECO's patented macrolide
antibiotic, which is used for the treatment of respiratory and enteric diseases
in pigs and poultry.


Contacts:
ECO Animal Health Group plc Marc Loomes 020 8447 8899


Spiro Financial Anthony Spiro 020 8336 6196

Cenkos Securities plc Stephen Keys 020 7397 8926
(Nominated Adviser)

ECO Animal Health Group plc is a leader in the development, registration and
marketing of pharmaceutical products for animals. Our products for these global
growth markets promote well-being. Our financial goals are achieved through the
careful and responsible application of science to generate value for our
shareholders

[audigger] 05/1/2010 11:47

Agree. Its a sensible use of equity. Would be nice to get FDA approval in 1Q and then to start to realise significqant income/profit from all these product approvals.

[ltinvestor] 05/1/2010 10:26

Todays announcement of the purchase of the remaining 80 percent of Ecopharma in Japan is immediately earnings enhancing and is an excellent start to what is hopefully going to be a transformational year for Eco Animal Health.

[topvest] 21/12/2009 21:52

It's smart to fund growth with equity in these markets. Lawrence look well placed to benefit in the year's ahead. They've had to drop the price to get it away, but not too much dilution for a sizeable slug of cash that will be put to good use.

[smelleroo] 21/12/2009 20:12

surprised the shares were so weak today, guess the mm's were left to the own devices to evaluate this. this is very good news, the proceeds are NOT being used to pay down debt etc. it does seem that 2010 will be very exciting for eah! this silly price movement is a topping up opportunity, assuming you can buy stock!

smell

[audigger] 21/12/2009 08:42

Well looks like the excitement has come early! Nothing like a bit of dilution to present a perfect buying opportunity. I very nearly bought 3Ks worth last Wednesday but was suspicious as to whether there was a reason behind the series of small drops. Clearly there was. Of course the question now is will this drift a little further south or we we see a quick bonce. I suspect the latter (based on the fundamentals going forward), so I feel a pre-Christmas purchase coming on.

[smelleroo] 21/12/2009 07:20

china and usa references in today's news. merry christmas and here is to a great 2010 for eah! next year should be very exciting!

smell

[audigger] 28/11/2009 08:13

Well I didn't notice that the half-year report came out yesterday. It all looks very positive. Interesting to see they have an MRC grant for the anti-viral work which at least shows it maintains some credibility as an option for Aivlosin. Its strange we had the big fall against the backdrop of this good update, hopefully we may see another jump depending on overall market sentiment which is lokking rather volatile. I still can't get my hands on cash to buy more until Jan, so I'm hoping it doesn't gain too much until then. FDA approaval should be the prompt for a significant increase in share price especially if they are already gearing-up to respond to this.

[audigger] 24/11/2009 15:28

Not exactly but I think its 1Q 2010

[ruby2] 24/11/2009 10:11

Do we know when FDA approval is due?

[audigger] 17/11/2009 21:19

This is the weird thing about this share it appears extremely volatile in relation to very small volumes. IMHO its a good buying opportunity. Unfortunately I won't have spare cash until the New year, so it may be a missed opportunity. I've no doubt we'll see another sharp jump in response to FDA approval.

[beersford] 16/11/2009 17:51

can we have some buyers in that case?

[smelleroo] 16/11/2009 17:46

one 9000 trade on plus which represented £18k worth of stock yet knocked millions of the mkt cap - silly really. nothing to worry abut imho for serious holders as the same happens when people buy this stock!

smell

[beersford] 16/11/2009 17:34

what is that fall all about,10% without any news?

[smelleroo] 29/10/2009 10:02

yes but unlikely eco will still be a public quoted companies in a few years!

smell

[audigger] 29/10/2009 09:09

Plenty of pigs though! More good news. All we need now is FDA approval and the scene is set for a profitable few years ahead.