EVE Health Accelerates Growth with $3M Nextract Biotech Acquisition

Strategic Acquisition to Expand Pharmaceutical Footprint

EVE Health Group (ASX: EVE) has taken a decisive step to diversify and deepen its presence in the regulated health sector by executing a binding Share Purchase Deed to acquire 100% of Nextract Pty Ltd, an Australian biotech company specialising in advanced oral delivery systems. Valued at $3 million in equity, this acquisition is supported by a $1.5 million capital raising, including a $1 million placement and a $0.5 million Share Purchase Plan, alongside a proposed 40:1 share consolidation to streamline EVE’s capital structure.

The move signals a strategic pivot for EVE from its established wellness and nutrition base into pharmaceutical-grade products, leveraging Nextract’s expertise in reformulating known active pharmaceutical ingredients (APIs) into novel delivery formats with enhanced performance.

Targeting Large, High-Growth Markets with Innovative Products

Nextract’s lead product is an alcohol-free, orally dissolvable film designed to address the global erectile dysfunction (ED) market, valued at approximately US$5.3 billion. This product aims for a rapid therapeutic onset within 15 minutes, a significant improvement over existing treatments, based on preliminary observational data pending clinical validation.

Complementing this is a second product candidate targeting the US$10.9 billion global dysmenorrhea (period pain) market, offering a natural, non-hormonal formulation. Both products are positioned to meet growing consumer demand for effective, convenient, and culturally sensitive health solutions, particularly in regions such as the Middle East and North Africa (MENA), where alcohol-free formulations are preferred.

Integration and Commercialisation Plans Underway

Following the acquisition agreement, EVE is progressing integration and regulatory submission plans, targeting late 2025 for commercial launch. Manufacturing is planned through GMP-certified partners to ensure scalability without heavy capital expenditure. Regulatory pathways include Australia’s Special Access Scheme (SAS-B) and Authorised Prescriber routes, with dossier submissions expected within months.

Additionally, the acquisition enhances synergies with EVE’s Meluka Australia brand, known for natural health and gut wellness products. Nextract’s pharmaceutical formulation and regulatory expertise are expected to support potential Therapeutic Goods Administration (TGA) listings for Meluka products, broadening EVE’s portfolio and market reach.

Financial and Governance Updates

At quarter end, EVE reported a cash balance of $0.3 million and a net operating cash outflow of $0.4 million, reflecting ongoing investment in marketing and product development. The company is actively managing debt repayments linked to Meluka sales and has engaged Peak Asset Management as Lead Manager for the $1 million placement.

A shareholder meeting is scheduled for 29 May 2025 to approve the acquisition, capital raising, and the proposed 40:1 share consolidation. The appointment of Damian Wood as Managing Director is also proposed, bringing pharmaceutical and regulatory expertise critical to the company’s next growth phase.

Outlook: A New Chapter in EVE’s Growth Story

Managing Director Bill Fry emphasised the acquisition’s transformative potential, highlighting the opportunity to transition from functional foods to a diversified health platform with access to global pharmaceutical markets. The integration of Nextract’s technology and product pipeline is expected to accelerate growth and open new avenues for EVE’s established brands.

As EVE navigates regulatory approvals and prepares for commercialisation, investors will be watching closely to see how effectively the company leverages this acquisition to deliver on its ambitious growth strategy.