Apiam in the News

The ASX small caps looking to capitalise on post-COVID trends in animal health.

Telemedicine now live at all Apiam Fur Life Vet clinics

Pet owners can now have initial consultations with their vet on their smartphone or tablet using video technology.
One of Australia’s largest veterinary service providers, Apiam Animal Health, has rolled out its telemedicine service across 21 sites around the country.

MEDIA RELEASE

23 April 2020

Apiam Animal Health offers online pet consultation

Pet owners can now have initial consultations with their vet on their smartphone or tablet using video technology.

One of Australia’s largest veterinary service providers, Apiam Animal Health, has rolled out its telemedicine service across 21 sites around the country.

Apiam Managing Director Dr Chris Richards said the company had taken its existing practice management software RxWorks and combined it with scheduling platform Vetstoria to create a complete online booking and consultation service.

“Similar to what is provided through telehealth services now provided by GPs, we are providing pet owners with a service they can use from the convenience of their home,” he said.

For people in isolation or who don’t want direct contact it is ideal, allowing them to get initial health advice for their pet. As many of the Apiam clinics and hospitals are in regional areas it saves consumers having to travel hundreds of kilometres in many cases.

“Additionally, we are now providing a drop off and pick up service for those people in high-risk groups as another option to avoid human contact.”

The new technology enables pet owners to book the right vet online to ensure they get the best advice from the best qualified vet.

The Apiam clinics that have rolled out the telemedicine service are:

Victoria: Echuca, Maffra, Sale, Warrnambool, Terang, Barham, Cohuna, Kerang, Kyabram, Hamilton, Warragul and two in Bendigo
Tasmania: Scottsdale and Smithton
Queensland: Gympie, Bell and Tin Can Bay
NSW: Dubbo, Quirindi, Finley, Deniliquin.

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Apiam introduces Zoono z-71 Microbe Shield

z-71 Microbe Shield Surface sanitiser and protectant for commercial and agricultural industries. Daily germ defence for families. Zoono Z-71 Microbe Shield Surface Sanitiser is effective disinfectant for hard surfaces against germs, bacteria and COVID-19. Visit Zoonovet for information, technology and efficacy and applications across agriculture, business and home.

MEDIA RELEASE

17 April 2020

Apiam Animal Health’s Zoono sanitiser a major breakthrough in COVID-19 prevention.

One of Australia’s largest veterinary service providers, Apiam Animal Health, having recently secured distribution rights of a revolutionary surface sanitiser and protection nanotechnology, has had its Z-71 Microbe Shield product approved by Australia’s Therapeutic Goods Administration for use against COVID-19.

The TGA approval comes on the back of research conducted in the United Kingdom against a COVID-19 surrogate, feline coronavirus, where the Z-71 Microbe Shield was able to reduce the viral levels by over 99.99%.

Apiam Managing Director Dr Chris Richards said the biggest difference between this sanitiser and others on the market is that continues to remain effective over time through killing pathogens by mechanical rather than chemical action.

It has been demonstrated through extensive research over 10 years against a range of pathogens to effective for up to 30 days

Laboratory tests are currently progressing to establish the duration of protection that the Z-71 Microbe Shield product will have against a COVID-19 surrogate. Apiam has demonstrated 30 days pathogen protection in its animal field studies against a similar coronavirus that causes high mortality in young pigs.

Both mechanical and chemical sanitisers will kill most pathogens pretty much straight away but the fact that it has been tested to be effective against many germs for up to 30 days on surfaces is a major breakthrough

Apiam acquired the distribution rights for the livestock and animal health industries in Australia in November last year for the disinfectant technology, which is manufactured in New Zealand by fellow ASX-listed company, Zoono Group Limited.

We were initially attracted to the Zoono products for use by our network of vets to sanitise and protect piggeries, poultry sheds and livestock systems, as well for use in biosecurity programs with the technology having been proven in laboratory tests in The Netherlands to be effective against the African Swine Fever virus.

African Swine Fever is a contagious viral disease of domestic and wild pigs. There is no vaccine and kills about 80 per cent of the pigs it infects. On 11 December last year, the Federal Government announced $66.6 million of funding to address the immediate threat of the disease, which has recently been reported as close as Papua New Guinea and Timor-Leste.

Dr Richards said Apiam had also been using its current supply of Z-71 Microbe Shield to sanitise its own offices and veterinary hospitals around the country.

Veterinary practices are seen as an essential service and we want to ensure that we make it as safe as possible for our staff and clients.

There had been strong demand from both Apiam clients and the greater community for the use of its products, and Apiam was providing fogging services where requested to assist other essential businesses and workplaces to improve their biosecurity and hygiene systems.

Apiam currently had plenty of stock of the Z-71 Microbe Shield and was expecting to get additional supplies of both Z-71 Microbe Shield and Zoono’s hand sanitiser in the coming weeks, which would be available through Apiam clinics and the countryvet.com.au website.

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Managing Director’s Message

Dear Apiam shareholders,

I thought it was an important time to provide a business update given the turbulence and challenges for many businesses and stock markets in recent times as we all adapt to a rapidly changing environment due to the global outbreak of COVID-19.

I would like to reassure shareholders that Apiam has delivered a very solid trading performance in the three months to 31 March 2020 (Q3 FY2020), and is on track to meet its guidance to deliver EBIT growth in the current second half of the 2020 financial year (vs H1 FY2020).

Revenue (unaudited) for Q3 2020 was $31.2m, 16.2% higher than Q3 2019.March YTD 2020 revenue of $87.4m was up 5.4% on the prior corresponding period. Gross Profit (unaudited) for Q3 2020 was $17.3m, up 29.5% on Q3 2019. March YTD 2020 gross profit of $47.5m rose 13.5% compared to a year earlier.

In particular, Q3 FY2020 was supported by a strong performance in March with growth being achieved across all of Apiam’s animal segments despite the broader global challenges. Underlying industry conditions in many of our regional areas improved due to recent rainfall and the benefits of Apiam’s growth-focused strategy and implementation of new business initiatives also made important contributions –particularly Zoono disinfectant product sales into the pig and poultry industry, the ProDairy consultancy program and our Best Mates program within the companion animal segment.

In relation to COVID-19, I can reassure you we are monitoring the situation closely and are keeping abreast of all developments in major markets. As an animal healthcare business, hygiene and health safety are a fundamental part of our business and Apiam’s highly trained veterinary practitioners and support teams are very experienced in managing the risk of infectious agents.

Nonetheless, we are preparing for future challenges that may evolve and carefully navigating new technologies and ways of doing business that put the safety of our customers, staff and the community at the forefront of what we do. I am proud of our team for quickly adapting to using new technology and initiatives aimed at protecting business and service continuity, such as TeleHealth for remote consultations where possible. This is a difficult time for many. To date, Apiam has been able to remain a resilient business that offers an essential and important health service to its customer’s animal base. We are in good shape financially and operationally and we believe we are well placed to weather the COVID-19 storm. Below, in this newsletter, you’ll find more detail on some of the initiatives I’ve outlined briefly above. Please do not hesitate to contact me via email at
chris@apiam.com.au if you have any further questions about Apiam’s business. Regards,
Dr. Chris Richards
Managing Director

Strong demand for Apiam’s Zoono disinfectant products

In November 2019 Apiam executed an agreement with Zoono Animal Health for the exclusive distribution of ASX-listed Zoono Group’s proprietary sanisitiser and protectant technology for use in livestock facilities in Australia and for US-based swine customers. Apiam has recently extended its distribution footprint with an expansion of its US rights from swine to other livestock, poultry and the veterinary industry, in addition to new territories of Canada, New Zealand, Philippines and Vietnam, where it is working with existing distribution channels to bring the products to market.

Zoono produce an alternative to chemicals which both disinfects and provides ongoing mechanical activity for up to 30 days. The innovative technology has demonstrated effectiveness against a range of common bacteria and viruses including H1N1 influenza (prevalent in swine) and feline coronavirus. Recent tests in the United Kingdom have also shown effectiveness against this COVID-19 surrogate, which has led to Australia’s Therapeutic Goods Administration (TGA) approving Z-71 Microbe Shield as an effective disinfectant for hard surfaces against COVID-19. Both laboratory studies by Wageningen University & Research at Lelystad in The Netherlands and field trials in China have demonstrated high effectiveness of Z-71 Microbe Shield against African Swine Fever virus. Recent trials by Apiam in the USA under commercial conditions has demonstrated effectiveness in preventing porcine epidemic diarrhea (PED) outbreaks caused by the PED virus, a coronavirus, that causes high mortality in young pigs. These trials have been undertaken on several farms, where PED is endemic, and to date have not had any PED outbreaks across more than 10 nursery sites.

Interest in Z-71 Microbe Shield from the Philippines and Vietnam is strong given the large pig and poultry industries and current African Swine Fever (ASF) and highly pathogenic avian influenza (HPAI) outbreaks. Apiam stocks a range of Zoono disinfectant products including the Z-71 Microbe Shield Sanitiser and Protectant (which is applied to surfaces through fogging or spraying), and the Zoono body hand sanitiser which provides up to 24 hours protection against germs when applied to skin. In addition to the rapid uptake in the livestock and veterinary markets, in the current market environment both these products have experienced strong surges in customer enquiries for COVID-19 protection with orders taken for stock that will be delivered into April.

Apiam is also using its Zoono products as an important defense in its own business operations – whether it be out on customer farms in animal enclosures and office amenities, or in clinics to protect its customers, staff and the broader community.

Demand for Zoono products across Apiam’s customer base has increased significantly during Q3 FY2020 and management expect strong sales of Zoono products to continue into Q4 FY2020 and beyond.

Beyond the COVID-19 threat, Zoono products will continue to be an important defense against disease threats in agricultural industries, as part of biosecurity programs, in the prevention of diseases caused by endemic bacteria and viruses and in assisting in the prevention of infection by PEDv, African Swine Fever virus and other devastating pathogens in international markets.

Refer to the “In the Media” section for An article in the Weekly Times about Apiam’s Zoono disinfectant products.