Market Overview

Covenant Animal Health Partners Launches; Firm Will Accelerate Animal Health Products to Market

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Novel Partnership Between TechAccel and Reliance Animal Health
Partners Will Develop Revenue-ready Products.

TechAccel
today announced a novel partnership with Reliance Animal Health Partners
to focus exclusively on bringing animal health innovations to market
under the name of Covenant
Animal Health Partners
. Covenant is dedicated to the development and
registration of "revenue-ready" animal health products. It will address
critical market needs across production and companion animals and will
advance new assets into industry partner portfolios.

This partnership combines TechAccel's unique technology and venture
development and advancement focus with the expertise of Reliance's four
partners, who have decades of experience in international animal health
companies.

"This new enterprise assembles an all-star team of industry leaders with
first-hand know-how in product development," said Michael Helmstetter,
Ph.D., president and CEO of TechAccel. "Covenant will identify and
advance new technologies to market, as well as operate external
innovation programs for the global animal health industry."

Thomas Overbay, D.V.M., of Reliance who, along with Helmstetter, will
serve as a Covenant board member and managing director, said the ongoing
consolidation in the $26 billion animal health industry creates
significant opportunity for Covenant. Overbay is founder of Expedite
Animal Health, a business development and technical consultancy to the
international animal health industry.

"Research and development budgets are tightening up across animal health
firms," continued Helmstetter. "As a result, they will primarily fund
projects with the largest revenue potential and lowest risk. We see a
significant opportunity to develop products that address real market
needs, but do not clear the internal development hurdles of large animal
health companies. Covenant will quickly and cost effectively advance
these assets and then match them with leading animal health
manufacturers and distributors."

Brett Morris, CFA®, Principal with TechAccel, who led the Covenant deal,
said the new venture is already working on projects for companion and
production animal markets. Terms of the deal and the projects were not
disclosed.

"The market is hungry for external product support," said Morris.
"Covenant's thesis is to develop new products for approval by the
appropriate regulatory agencies and sell those registrations to animal
health companies. The industry is looking for ways to increase revenue
and expand their product portfolio without consuming internal research
and development dollars, and we intend to fulfill that need."

Covenant does not plan to market and distribute its own products to
compete with animal health firms. Rather, the company will generate
income via asset sales or licensing deals, Morris said.

Covenant will leverage TechAccel's established network, infrastructure
and resources. Covenant's team includes the three other founders of
Reliance, along with Overbay:

  • Thomas Campi, D.V.M., former director of external innovation at Elanco
  • Thomas Kennedy, Ph.D., who held senior R&D leadership roles with
    Boehringer Ingelheim's Animal Health business unit, the former
    Mallinckrodt Veterinary Inc., Bayer Animal Health, and Central Life
    Sciences
  • Robert Nordgren, Ph.D., who is the former R&D executive for Boehringer
    Ingelheim and former lead of global vaccines and biotherapeutics at
    Merial

"We are delighted to welcome these long-time industry leaders, now
aligned as Covenant, to the Animal Health Corridor," said Kimberly
Young, President of the KC Animal Health Corridor. "Covenant's unique
business model will leverage – and contribute to – the collaboration and
innovation that the Corridor delivers."

About TechAccel

TechAccel LLC was founded in 2014 as a first-of-its-kind technology and
venture development organization in the agriculture, animal health &
nutrition, and food technology sectors. TechAccel sources, invests in
and acquires early-stage innovations. Through collaborations with
universities and research institutions, TechAccel conducts advancement
and de-risking research and development to ready technologies for
commercialization. For more information, visit www.techaccel.net.
Follow us on Twitter at @Tech_Accel.

About Reliance Animal Health Partners

Reliance Animal Health Partners was established in 2017 to identify,
evaluate, and develop technologies of interest to the global animal
health industry. Reliance's partners bring more than 150 years of
diverse experience across the various disciplines of the animal health
industry. The company's experience in pharmaceuticals, biologicals,
diagnostics, and devices around the globe offer the industry the
resources necessary to discern opportunities and bring those meriting
development to market efficiently and economically. Reliance offers a
unique bridge between innovation and commercialization. For more
information, contact tom.overbay@relianceanimalhealth.com.

About Covenant Animal Health Partners

Covenant Animal Health Partners, a subsidiary of TechAccel, is dedicated
to the development and registration of "revenue-ready" animal health
products. Covenant addresses critical market needs across production
animals and companion animals and advances new assets into industry
partner portfolios. The company's experienced team of animal health and
technology development and advancement professionals brings decades of
expertise in the rapid evaluation, development and partnering needed to
deliver critical solutions to animal health manufacturers and
distributors. In addition to proprietary programs, Covenant works with
animal health industry leaders to fund, develop and accelerate external
innovation initiatives. See www.CovenantAH.net.
Follow us on Twitter @CovenantAH.

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