On February 4thth, Eevia Health Plc (publ) (“Eevia”) announced that the Company has agreed to sell IP related to the leading eye-health compound, Retinari™, to Havu Health Oy for EUR 800k, equivalent to approx. SEK 9.2m. Retinari™ is a promising compound in fighting Age-related Macular Degeneration (AMD), the primary cause of blindness.
Analyst Group’s View of the Divestment
As part of Eevia’s ongoing streamlining initiatives, the Company is planning to divest assets to maximize shareholder value and capitalize on market opportunities. The divestment of IP related to the Company’s leading eye-health compound, Retinari™, for approx. SEK 9.2m is a testament to the underlying value embedded in Eevia Health. While Havu Health Oy’s success will depend on securing adequate funding from grants and the Finnish venture fund, this divestment marks an important step in Eevia’s transformational restructuring plan, aimed at unlocking the Company’s intrinsic value.
About Retinari™ and the Divestment
Retinari™ is a stilbene extract derived from upcycled pine wood, developed over six years by Eevia. Preclinical studies, including biomarker analyses, mice trials, and human primary cell studies, have demonstrated its potential in preventing the onset and progression of Age-related Macular Degeneration (AMD), a leading cause of blindness among the elderly. The compound works by enhancing autophagy and cytoprotective capacity in retinal pigment epithelial cells. Despite promising results and recognition from the European Innovation Council’s Accelerator program, Eevia faced challenges in securing necessary funding for further development. Consequently, the Company decided to sell the IP to Havu Health Oy, aiming to ensure continued advancement of Retinari™ under new ownership.
The buyer is a start-up, Havu Health Oy, founded by Eevia’s CTO Petri Lackman. Eevia will receive shares in Havu Health as compensation for the assets, which is planned to be distributed to Eevia Health’s shareholders as a tax-free dividend, subject to pre-approval from Finnish Tax authorities. Havu Health Oy is in discussions with a Finnish venture fund for an equity investment and is submitting a EUR 800k Research and Development Loan application to Business Finland to finance the necessary safety studies. Additionally, Havu Health is preparing a EUR 2.5m grant application to the European Innovation Council’s Accelerator program, which would further accelerate the development process.
The book value of the intangible asset has been gradually written down over the years and, as of the end of Q4-24, it stood at approx. EUR 123k. Consequently, the sale generates an additional value of EUR 677k, and Eevia will withdraw the Company’s application to Business Finland to convert the loan into a grant. The loan, which currently amounts to approx. EUR 103k, does not require amortization until 2027 and will then be repaid over five years.
In summary, we view the divestment as a pivotal step in the Company’s ongoing restructuring plan, reinforcing the underlying value that the transformational strategy aims to unlock. Moving forward, Havu Health Oy’s ability to secure the necessary funding will be a key factor to monitor, as successful financing could unlock significant upside potential and accelerate the commercialization of Retinari™.
How Analyst Group views Eevia Health as an investment
In Q4-24, Eevia launched a transformational restructuring plan to become a specialized provider of high-margin, science-backed health solutions, focusing on gut, kidney, and urinary health. By divesting assets related to Retinari™ and berry extract manufacturing, Eevia aims to streamline operations, enhance profitability, and adopt a capital-light business model, leveraging the Company’s expertise in bioactive compounds. This turnaround plan allows investors to retain exposure to former operations without the financial risks of plant extract production. With a clear strategy set by the new and experienced board, Eevia is well-positioned to capitalize on the expanding gut health market and recover to profitable growth, thereby unlocking the underlying value within the Company. Overall, Analyst Group believes the ongoing rights issue presents an attractive entry point for investors at a Pre-Money valuation of SEK 6.0m.
