Eve Health Acquires Nextract, Expands into Pharma Market

About Eve Health Group Limited

Eve Health Group Limited (ASX: EVE) is an Australian health solutions company known for its consumer wellness brand Meluka Australia, which delivers premium gut health products. The company tries to embrace unique solutions to constantly improve its business, be transparent, and be committed to doing what is best for consumers, customers, and stakeholders. Eve Health Group Limited was listed on the ASX on 8 April 2004 at an issue price of AUD 0.008 per share.

Growth Pipeline

Nextract brings to EVE a product pipeline that addresses two large and underserved medical markets, which are erectile dysfunction (ED) and dysmenorrhea (period pain). The company’s proprietary drug delivery platform, which is based on nanoemulsion technology, enhances solubility and absorption, enabling rapid onset of action. For example, its oral film formulation of tadalafil (a PDE5 inhibitor) demonstrated an onset of action within 15 minutes in early trials, compared to the 30–60 minutes typically associated with leading ED treatments.

The dysmenorrhea product line also aims to replace hormonal and NSAID-based treatments with non-hormonal alternatives that act faster and with fewer side effects. Commercialising these products is expected to commence in early 2026, offering future revenue potential and expansion into U.S. and international markets.

Financial Performance

The acquisition is supported by a $1.8 million capital raise comprising a AUD 1 million placement, AUD 0.5 million Share Purchase Plan (SPP), and AUD 0.3 million in existing cash. Funds will be allocated towards regulatory approval processes, stability testing, marketing, and production for both ED and dysmenorrhea products.

EVE’s existing brand, Meluka Australia, generates approximately AUD 2 million in direct-to-consumer revenue annually. Integrating Nextract’s therapeutics into Meluka’s e-commerce and branding platform is expected to accelerate commercial traction and enhance revenue diversification.

Strategic Development

The transaction includes a 40-for-1 share consolidation and the issuance of 83.3 million vendor shares, 27.8 million placement shares, and up to 13.9 million SPP shares (post-consolidation). Subject to shareholder approval, trading on a consolidated basis is set to commence on 3 June 2025.

This strategic acquisition transforms EVE from a consumer health brand into a diversified pharmaceutical developer with integrated R&D, regulatory expertise, and commercial capabilities. The move is designed to fast-track growth and investor confidence through clear and achievable milestones, such as Australian TGA and U.S. FDA regulatory approvals.

Industry Context

Globally, the erectile dysfunction market is valued at US$5.31 billion and projected to grow at a CAGR of 7.6% from 2025 to 2032. Meanwhile, the dysmenorrhea market exceeds US$10.9 billion, increasing demand for non-invasive and fast-acting solutions. Nextract’s innovations are positioned to disrupt these sectors by offering superior alternatives to current standards like Viagra and NSAIDs.

With an ageing male population and rising awareness of reproductive health, the need for fast, effective, and stigma-free treatments is increasing. Eve Health’s expansion into these markets addresses both commercial opportunity and unmet clinical needs.

Eve Health’s acquisition of Nextract marks a strategic leap toward becoming a vertically integrated health and pharmaceutical company. EVE is poised to unlock significant value in the next 12 months by targeting two high-growth global markets with innovative delivery solutions. The streamlined regulatory pathway in Australia and a scalable product portfolio further strengthen the investment case. Investors seeking exposure to emerging therapeutic technologies and strong market fundamentals may find EVE’s new direction attractive.