- Creso Pharma (CPH) signs a non-exclusive letter of intent with Laboratorios Brouwer and Creso’s Latin American representative, Medara, for commercialisation and sale of its anibidiol animal health products
- All parties have agreed to enter into a formal commercial services and supply agreement by July 30 which will set out terms on which Brouwer and Medara will import and distribute the products in Latin America
- Creso confirms that discussions regarding product formulation, importation requirements and the acquisition of raw materials are underway
- The company expects that commercialisation and sale into the new territories will commence during H2 2022
- CPH shares were unchanged at 7.2 cents
Creso Pharma (CPH) has signed a non-binding, non-exclusive letter of intent (LOI) with Laboratorios Brouwer and Creso’s Latin American representative, Medara, for commercialisation and sale of its flagship anibidiol products in the Latin America region.
The initial target countries in the region include Argentina, Chile, Peru, Brazil, Colombia and Mexico.
Brouwer is a leading manufacturer and supplier of products for animal health and animal nutrition for companion animals and livestock. The group is based in Argentina.
All parties, as part of the LOI, have agreed to enter into a formal commercial services and supply agreement by July 30.
The agreement sets out terms on which Brouwer and Medara S.A. will import and distribute Creso Pharma’s anibidiol animal health products in South America.
The initial term of the LOI will run until the expiration date and is intended to be replaced by the terms of the Commercial Agreement.
“Latin America is a highly attractive region for the company to operate in,” said CEO and Managing Director Will Lay.
The market is currently estimated at a value of US$1.84 billion (A$2.46 billion) and is set to grow 6.12 per cent by 2027.
“We believe there are substantial growth expectations and it boasts a very favorable regulatory environment across the animal health sector.”
The LOI is expected to increase the company’s exposure to the large, addressable market in Latin America where there are an estimated 187 million pets, which represents a growth
of 17 per cent in the pet population since 2017.
Creso has also confirmed that discussions regarding product formulation, importation requirements and the acquisition of raw materials are underway.
The company expects that commercialisation and sale into the new territories will commence during H2 CY2022.
CPH shares were in the grey, trading at 7.2 cents as of 3:40 pm AEDT.