EVE Health Group (ASX:EVE) has signed a binding Master Compounding and Profit Share Agreement with Optimal Pharmacy Plus Stafford to commercialise its proprietary men's sexual health range in Australia, with EVE entitled to 75% of profit available for distribution after direct costs of compounding and delivery.

Key Points

  • EVE signed a binding Master Compounding and Profit Share Agreement with Optimal Pharmacy Plus Stafford to commercialise its proprietary men's sexual health range in Australia.
  • EVE is entitled to 75% of profit available for distribution, calculated as net patient revenue less direct costs of compounding and delivery; Optimal receives 25%.
  • EVE retains full ownership of its patent-pending nano-emulsion technology and all related intellectual property, including improvements made under the Agreement.
  • There are no upfront payments or fixed fees payable by EVE under the Agreement, and no minimum volumes or guaranteed revenue are included.
  • The initial term is two years from first supply, renewing automatically for successive 12-month periods unless either party provides 90 days' notice prior to term end.

Agreement Structure and Profit Share Terms

Under the Agreement, EVE supplies its formulation technology, technical know-how and commercial support, while Optimal is responsible for sourcing ingredients, compounding, dispensing and delivery. Profit available for distribution is defined as net patient revenue — excluding GST, refunds and chargebacks — less direct costs, including ingredients, packaging, delivery and a fixed per-unit labour rate, with no margin or mark-up and all rebates and savings passed through. EVE pays support fees to telehealth partners from its 75% share. First supply is subject to conditions, including completion of technology transfer and validation.

Patent-Pending Nano-Emulsion Technology and Intellectual Property

The men's sexual health range is based on EVE's patent-pending nano-emulsion technology, designed to treat both erectile dysfunction and premature ejaculation. EVE retains ownership of the formulation and all related intellectual property, including any improvements developed under the Agreement. Optimal's appointment is exclusive in Australia for the initial products from first supply, and Optimal must not compound or supply competing formulations. The Agreement is separate from, and does not affect, EVE's Libbo® vardenafil oral soluble film program, which continues along its planned bioequivalence and registration pathway.

Agreement Duration, Termination Provisions and Next Steps

The Agreement carries an initial two-year term from first supply, with automatic renewal for successive 12-month periods unless either party provides 90 days' notice before the end of the current term. Either party may terminate on 30 days' notice for unremedied material breach, or immediately upon insolvency or loss of a necessary licence or approval. EVE may terminate if first supply has not occurred within three months of signing, other than due to EVE's default. The company said it will work with Optimal to complete readiness steps for first supply and engage telehealth partners to reach patients, with prescribing decisions remaining with independent clinicians.