Better Choice Company to Expand into Veterinary Medicine in 2025 Following the Acquisition of SRx Health

Rhea-AI Summary

Better Choice Company (NYSE: BTTR) has announced plans to expand into veterinary medicine in 2025 following the acquisition of SRx Health. The new initiative, named Better Pet Rx, will focus on providing care for pets. This expansion aligns with Better Choice's vision of becoming a leading global health and wellness company for both humans and pets.

The acquisition of SRx Health will allow Better Choice to leverage their expertise, existing relationships with pharmaceutical companies, and infrastructure to complement its Halo portfolio of premium pet food products. The company sees animal pharmaceuticals as a key growth area within the pet care industry.

Better Choice will provide more details about the transaction during a Shareholder Update Call scheduled for October 15th at 4:30 PM Eastern Time.

Positive

• Expansion into the growing animal pharmaceuticals market
• Leveraging SRx Health's expertise and relationships in the pharmaceutical industry
• Complementing existing Halo pet food product portfolio
• Aligning with long-term vision of becoming a global health and wellness company

Negative

• None.

Insights

Financial Analyst

The expansion into veterinary medicine through the acquisition of SRx Health marks a significant strategic shift for Better Choice Company. This move into the animal pharmaceuticals market could potentially open up new revenue streams and diversify the company's product portfolio beyond pet food. The pet care industry, particularly the veterinary medicine segment, has been experiencing robust growth, which could translate into increased market opportunities for BTTR.

However, investors should consider the following points:

• The financial terms of the SRx Health acquisition are not disclosed, making it difficult to assess the immediate impact on BTTR's balance sheet.
• The expansion is slated for 2025, indicating a long-term strategy that may not have immediate effects on the stock price.
• Entering the pharmaceutical space will likely require significant investment in R&D, regulatory compliance and marketing, which could impact profitability in the short term.
• The success of this venture will depend on BTTR's ability to effectively integrate SRx Health and capitalize on synergies with its existing Halo brand.

While the move shows promise for long-term growth, the lack of financial details and the distant timeline for implementation suggest a cautious approach for investors in the near term.

Market Research Analyst

The pet care industry has been experiencing a boom, with the global pet care market expected to reach $269 billion by 2025. Better Choice Company's expansion into veterinary medicine through Better Pet Rx is a strategic move to capture a slice of this growing market. Key points to consider:

• The animal health market is less cyclical and more resilient compared to many other industries, offering potential stability for BTTR's revenue streams.
• By combining pet food with veterinary medicine, BTTR is positioning itself as a more comprehensive pet health company, which could enhance brand loyalty and customer lifetime value.
• The company's existing relationships with pet owners through its Halo brand could provide a strong foundation for cross-selling pharmaceutical products.
• However, the veterinary medicine market is highly competitive, with established players like Zoetis and Elanco. BTTR will need to differentiate itself to gain market share.

While the expansion shows promise, success will depend on effective execution, product development and market penetration strategies. Investors should monitor the company's progress in integrating SRx Health and its ability to leverage existing distribution channels for the new product line.

TAMPA, Fla., Oct. 11, 2024 (GLOBE NEWSWIRE) -- Better Choice Company (NYSE: BTTR) (“Better Choice” or “the Company”), a pet health and wellness company, today announced expansion plans into veterinary medicine in 2025 following the closing of the SRx Health acquisition. The new initiative, Better Pet Rx, will focus on providing care for your pets with love.

“By leveraging the expertise of SRx Health’s management team, their pre-existing relationships with pharma, and their robust infrastructure, Better Choice can complement its Halo portfolio of premium and super-premium pet food products by expanding into veterinary medicine. Animal pharmaceuticals is a key area of growth within the pet care industry and will support Halo’s sustained momentum forward,” said Michael Young, Chairman of the Board. “This initiative aligns with our long-term vision of creating a leading global health and wellness company that provides products and solutions for families to make better choices for both human and pet members.”

Better Choice will provide an update on the transaction during its scheduled Shareholder Update Call on October 15^th at 4:30 PM Eastern Time. See details here.

About Better Choice Company Inc.
Better Choice Company Inc. is a rapidly growing pet health and wellness company committed to leading the industry shift toward pet products and services that help dogs and cats live healthier, happier, and longer lives. We take an alternative, nutrition-based approach to pet health relative to conventional dog and cat food offerings and position our portfolio of brands to benefit from the mainstream trends of growing pet humanization and consumer focus on health and wellness. We have a demonstrated, multi-decade track record of success selling trusted pet health and wellness products and leverage our established digital footprint to provide pet parents with the knowledge to make informed decisions about their pet’s health. We sell the majority of our dog food, cat food and treats under the Halo brand, which is focused, respectively, on providing sustainably sourced kibble and canned food derived from real whole meat, and minimally processed raw-diet dog food and treats. For more information, please visit 
https://www.betterchoicecompany.com.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. The Company has based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Some or all of the results anticipated by these forward-looking statements may not be achieved. Further information on the Company’s risk factors is contained in our filings with the SEC. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Company Contact:
Better Choice Company, Inc.
Kent Cunningham, CEO

Investor Contact:
KCSA Strategic Communications
Valter Pinto, Managing Director
T: 212-896-1254
Valter@KCSA.com

FAQ

When will Better Choice Company (BTTR) expand into veterinary medicine?

Better Choice Company plans to expand into veterinary medicine in 2025 following the acquisition of SRx Health.

What is the name of Better Choice Company's (BTTR) new veterinary medicine initiative?

The new veterinary medicine initiative is called Better Pet Rx.

How will the SRx Health acquisition benefit Better Choice Company (BTTR)?

The acquisition will provide Better Choice with expertise, pharmaceutical industry relationships, and infrastructure to support its expansion into animal pharmaceuticals.

When will Better Choice Company (BTTR) provide more details about the SRx Health acquisition?

Better Choice will provide an update on the transaction during a Shareholder Update Call scheduled for October 15th at 4:30 PM Eastern Time.