As MLA says this "represents a major strategic development for MLA" moving it into "animal healthcare industry where we are offering a more cutting edge technology with higher margins, repeat business and future cross-selling opportunities."
It implies that the current MLA business (including the ALT products) are just not generating the revenue/scale required for MLA to obtain sufficient margins to ensure sustainabale profitability.
I am firmly of the view that a MLA / Medivet merger is the way to go here, to fully capture the margins associated with MediVet's excellent IP.
MLA Price at posting:
18.0¢ Sentiment: LT Buy Disclosure: Held