Intervacc - European distribution agreement with Dechra

Signs European commercial partner for Strangvac Dechra stands out as an attractive commercial partner Set for EMA approval in Q2’21 and sales start Q3’21 Dechra to sell Strangvac in Europe ex-Nordics/Baltics Intervacc announced that it entered into an exclusive distribution agreement with UK-based Dechra Pharmaceuticals to commercialise Strangvac in Europe-ex Nordics and Baltics where Intervacc will market and sell Strangvac directly. Dechra will purchase finished products from Intervacc at an undisclosed transfer price (we estimate EUR 15 per dose) plus additional future payments to Intervacc linked to undisclosed sales milestones. As we expected, the five-year agreement does not come with an upfront payment. This leaves Intervacc’s production agreements with 3P Biopharma/LIOF-Pharma intact as well as markets outside of Europe such as the US open for additional commercial agreements.

Strong commercial footprint with focus on equine Dechra is the world’s 8th largest animal health company with a global market share of ~1. 3%. FY’20 sales was GBP 515m, of which ~7% (~GBP 36m) stemmed from equine-related sales.

Some 53% of group sales came from Europe, with major geographies being France and Germany (~1 million horses), the Netherlands (~450K horses) and the UK ( Commercial deal pre-approval to hit the ground running While the press release lacks details such as price and size of milestones, it is clearly a positive step for the future commercialisation of Strangvac. With the agreement in place before potential EMA approval, Strangvac could hit the ground running upon approval. We expect a positive opinion from EMA in Q2’21 and subsequent European commercial launch in Q3’21.