EVE Health signs Australian pharmacy deal for its men’s health range, retaining 75% of distributable profit in a capital-light route to market.
Nik HillJournalist
· 2 min read
In this storyEVE
In briefAt-a-glance3takeaways
- 01EVE signed a pharmacy deal to commercialise its men’s health formulations in Australia.
- 02EVE receives 75% of distributable profit; Optimal handles compounding and delivery.
- 03Launch timing and sales are uncertain; no minimum volumes or revenue are guaranteed.
EVE Health Group (ASX: EVE) has signed a binding agreement with Optimal Pharmacy Plus Stafford to commercialise its proprietary men’s sexual health formulations in Australia through a pharmacy-led supply model.
The arrangement gives EVE a 75% share of distributable profit after specified direct compounding and delivery costs, with the pharmacy receiving the remaining 25%.
EVE will provide its patent-pending formulation technology and commercial support, with Optimal responsible for sourcing ingredients, preparing prescribed products, and delivering them to patients.
The agreement creates a potential revenue channel without EVE establishing its own compounding operation, although the timing of initial supply and any resulting sales remain uncertain.
An Australian study involving more than 100,000 men aged 45 and older found about 61% self-reported some degree of erectile dysfunction, indicating the potential scale of the patient population.
Capital-Light Route to Market
The initial range draws on EVE’s patent-pending nano-emulsion technology and is designed to address erectile dysfunction and premature ejaculation, conditions that can occur together.
Under the model, medicines will be compounded by the pharmacy for individual patients against valid prescriptions, with independent clinicians retaining responsibility for prescribing decisions.
EVE retains full ownership of its technology and associated intellectual property, including improvements developed under the arrangement, rather than transferring those rights to its pharmacy partner.
The parties intend to work with telehealth partners to connect eligible patients with services, with EVE meeting the partners’ support fees from its share of distributable profit.
Optimal’s Australian appointment is exclusive for the initial products from first supply, and the pharmacy is prohibited from compounding or supplying competing formulations.
Initial Two-Year Term
Distributable profit is calculated from patient revenue after refunds and chargebacks, less ingredients, packaging, delivery, and a fixed per-unit labour charge, with no margin added to those direct costs.
The agreement requires rebates and savings on those costs to be passed through, while EVE has no upfront payments or fixed fees payable under the arrangement.
Its initial term runs for two years from first supply and then renews for successive 12-month periods unless either party gives the required 90 days’ notice.
First supply depends on completion of technology transfer and validation, and EVE may terminate if supply has not commenced within three months of signing other than through its own default.
There are no minimum purchase volumes or guaranteed revenues, leaving commercial returns dependent on prescribing decisions, patient demand, product pricing, costs, and the launch timetable.
Libbo Registration Pathway
The pharmacy initiative is separate from EVE’s Libbo vardenafil oral soluble film program, which remains on its planned bioequivalence and registration pathway.
EVE sees scope to assess further products using its formulation platform and potentially pursue similar routes internationally, subject to additional commercial arrangements and applicable regulations.
“We are taking our proprietary, patent-pending technology to market in Australia through a capital-light model, with a strong pharmacy partner that will support supply,” chief executive officer Ben Rohr said, calling the agreement an “important milestone” for the company.
Before commercial supply begins, EVE and Optimal must complete preparation and validation work, while the products will remain individually compounded medicines rather than therapies assessed for safety, quality, or efficacy by the Therapeutic Goods Administration.
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