Sustained demand and continuing progress

For the year ended 31 March 2024, ECO Animal Health reports progress in both the second half and Q4, underpinned by demand for the Group’s proprietary Aivlosin^® antibacterial treatment for gastrointestinal and respiratory diseases in pigs and poultry. The Group reports sustained demand for Aivlosin^® across the territories it targets, which we note are worldwide: China, Japan and SE Asia, the Americas and Europe. The Group expects FY24 revenue to be in line with a market consensus estimate of £88.7m.

Following the November Capital Markets event we reviewed the contribution to valuation of the product development pipeline, particularly in light of the strong track record established by Aivlosin^® . Our resulting Fair Value range was 137p - 146p. This contrasts with the current share price, and suggests that the potential contribution to earnings of the product development pipeline deserves far closer attention.