Apiam Animal Health Limited (AHX.AX) eyes first virus vaccine production in 12 months from new facility
Sydney, Australia, April 11, 2022 – (ABN Newswire) — Despite only receiving a $700,000 government grant to build a much-needed viral vaccine facility, Apiam Animal Health Limited (ASX:AHX) is already considering production in the next 12 months, potentially including one for Japanese encephalitis which is currently impacting the Australian pork industry.
Although the state-of-the-art facility is not expected to be fully completed until 2025, it will be built in a modular design where the facility can begin use as soon as the first module is completed.
“We hope to be able to start producing vaccines within the next 12 to 18 months,” said Apiam chief executive Dr Chris Richards.
The need for rapid production of human vaccines has obviously been in the global headlines for the past few years, but like all other health trends, the animal kingdom is not far behind. As a leader in animal health and the largest operator of regional veterinary clinics in Australia, Apiam has identified a huge unmet need where its new vaccine facility can prevent future viral outbreaks.
“There is a priority to review a Japanese encephalitis vaccine. We are working with several academic research partners to see how we can bring it to market as soon as possible.”
Although the new facility, which will be located in Bendigo, Victoria, is the first of its kind in Australia, it will be an extension of Apiam’s work in animal vaccines where they have already commercialized three vaccines over the past for the past 18 months from their existing ACE Laboratories facilities.
Autogenous animal vaccines are becoming an increasingly important tool for veterinarians as the challenge of antimicrobial resistance looms. This, coupled with the consolidation of major industry players such as Ceva, Apiam, and Vaxxinova, caused the global autogenous animal vaccines market to be valued at US$116 million in 2020, but is expected to reach US$209 million by 2031. , according to Persistence Market Research.
“We will produce multiple virus vaccines where there are gaps in the market, particularly where there are currently no commercial vaccine products,” Dr Richards said.
“We have a license to produce vaccines, usually specific to a farm or production system where there is currently no commercial vaccine available or the commercial vaccines are no longer effective, which can happen. We are starting to see antigenic drift and mutations occur in some of these pathogens.
“So we’re effectively taking that bug from the farm, we’re making a vaccine, and then we’re providing it to that specific farm, or the whole industry in case the problem is a bigger industry problem. That’s a part industry in terms of being able to fill the gaps where commercial vaccines are not available.
“And bearing in mind that many of our commercial vaccines are manufactured in the United States and Europe, which are increasingly subject to supply chain disruptions, so having the ability to manufacturing in Australia provides some security for livestock farmers and creates local jobs.”
Manufacturing and supplying animal vaccines is just one part of Apiam’s vertically integrated business model, in which the company operates 73 clinics across the region of Australia and employs over 250 veterinarians. These clinics are all supported by Apiam’s centralized services which include their diagnostic laboratories, pathology departments, feeding tests and parasitology departments, as some of the vertical services applied by Apiam to drive organic growth. newly acquired clinics.
Over the past two years, Apiam has been a big winner from increased net migration out of capitals in response to COVID-19 and widely adapted remote working conditions. In many cases, these former city dwellers brought pets with them or started hobby farming with animals, which allowed Apiam to significantly increase the number of clients in their regional clinics.
Since the start of the pandemic, 2021 data from Animal Medicines Australia showed that pet ownership had increased by 15%, but Richards estimates that figure has now reached 20%.
“Regions are booming, people are moving out of cities and we’re having a really good season.”
For the six months ended December 31, 2021, Apiam Animal Health recorded revenue of $75.1 million, representing a 22.7% increase over the prior year, which generated a profit gross of $46.2 million, an increase of 32.5%.
Stating his aggressive growth ambitions, including the growth opportunity in animal health vaccines, Dr. Richards aims to double the current revenue base to $300 million in annual revenue for Apiam by 2024.
About Apiam Animal Health Limited:
Apiam Animal Health Limited (ASX: AHX) comprises Australia’s leading veterinary practices for production animals and mixed animals.
Apiam Animal Health comprises over 150 highly experienced, industry-leading veterinarians with expertise in the swine, dairy, feedlot, sheep, poultry, horse and pet sectors, supported by an experienced administration, nursing, technical services and support team.
Apiam Animal Health is fully vertically integrated, including veterinary wholesale, diagnostic laboratories, custom vaccines, logistics and other ancillary services.
Apiam Animal Health Limited
Apiam Animal Health Limited
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