- Veterinary pharmaceutical developer Animalcare said it had agreed to form a joint venture with Canada-based biotech company Kane Biotech for treating biofilm-related ailments in animals.

Kane Biotech would create a new subsidiary, STEM Animal Health, in which Animalcare would invest C$3 million.

The money would be invested in installments over 48 months to acquire a one-third plus one share equity interest.

Animalcare would commercialise Kane Biotech's range of oral care products for companion animals in European and Asian markets and collaborate on the development of new biofilm treatments for animals.

Animalcare would have licensing rights over future STEM products in Europe and Asia and the option, for a period of six years, to acquire an additional one-sixth stake in the subsidiary for C$4 million.

It would start commercialising Kane Biotech's range of oral care products in the second half of 2021 and expected the agreement to be earnings enhancing in 2022.

'Our collaboration will bring the benefits of Kane Biotech's anti-biofilm oral and skin care technology to more animals and their owners in more countries around the world,' chief executive Jenny Winter said.

'The agreement complements Animalcare's existing portfolio and drives our future growth strategy by leveraging the group's knowledge of our veterinary markets while combining our expertise and resources with Kane Biotech to develop new, differentiated and much-needed solutions to prevent and treat infections.'

At 1:50pm: [LON:ANCR] Animalcare Group PLC share price was +2.5p at 187.5p

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