Ecofibre (ASX:EOF) announced the establishment of EOF BIO LLC aimed at commercialising intellectual property co-developed by Ecofibre and the University of Newcastle for treating endometriosis and ovarian cancer.

Before external investments, EOF-BIO is a fully owned subsidiary of Ecofibre USA, which in turn is a wholly-owned subsidiary of Ecofibre and has a pre-investment value of $30M.

EOF-BIO will undertake the task of raising new equity capital, ensuring dedicated management focus, and reducing financial risk associated with a biotech portfolio.

It will also have the exclusive rights to commercialise the intellectual property developed and will pay royalties for sub-licenses and developed products to Ecofibre and the University of Newcastle.