Eco Animal Health Group (AIM:EAH), the AIM-listed animal health company that develops and markets branded veterinary products for livestock productivity and welfare, has signed a perpetual exclusive licence agreement with Vaxinano SAS for the French biotech's sheep vaccine candidate against toxoplasmosis.
The deal covers all major sheep-rearing markets worldwide and the underlying technology carries patent protection.
Toxoplasmosis, caused by the parasite Toxoplasma gondii, is a recognised driver of reproductive failure in sheep, causing abortion, stillbirth and weak lambs, with significant economic consequences for producers.
Eco will pay Vaxinano a modest upfront licence fee plus a future development milestone payment and royalties on commercial sales, all funded from operating cash flow within the current year's research and development budget.
Management points to the candidate's advanced development stage and the company's existing commercial and distribution infrastructure as a de-risked, accelerated route to market.
"This agreement with Vaxinano is an exciting step forward for ECO, strengthening our position in livestock vaccines, complementing our new and growing vaccines franchise," said David Hallas, chief executive of Eco Animal Health.
The licence follows the July 2026 EU launch of ECOVAXXIN MS, the company's first vaccine from its own research pipeline, and adds a second growth leg to its expanding preventative medicines portfolio.
News Intelligence what this means for the company
Eco Animal Health has secured a perpetual exclusive worldwide licence for a late-stage sheep toxoplasmosis vaccine from Vaxinano, with peak UK and European sales estimated at £10 million annually. The deal—funded from operating cash flow within this year's R&D budget—adds a second vaccine growth leg to the company's portfolio, following ECOVAXXIN MS's EU launch in July 2026, and leverages Eco's existing commercial infrastructure to accelerate a de-risked route to market.
The licence expands Eco's preventative medicines franchise into a new therapeutic area (parasitic disease in sheep) with defined market size and patent protection, diversifying revenue beyond its core antibiotic Aivlosin. The deal's modest upfront cost and milestone-based structure preserve balance-sheet flexibility—net cash of £25.4m at March 2026 provides ample headroom—while the company's established distribution network materially reduces commercialisation risk versus a greenfield vaccine launch.
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