REG - SkinBioTherapeutics - Extension of Croda contract for SkinBiotix™

SkinbiotherapeuticsAnnouncement

19/10/2023 07:00

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RNS Number : 5924Q  SkinBioTherapeutics PLC  19 October 2023

SkinBioTherapeutics plc

("SkinBioTherapeutics" or "the Company")

Extension of Croda contract for SkinBiotix™

 

Extension of existing contract to enable completion and assessment of
SkinBiotix™ skincare studies

19 October 2023 - SkinBioTherapeutics plc (AIM: SBTX, or the Company), the
life science business focused on skin health, has agreed an extension to the
collaboration contract with Sederma, S.A.S. ("Sederma"), the cosmetics
division of Croda International Plc ("Croda"), for an additional twelve
months. This is to enable Sederma to complete and assess additional studies on
SkinBiotix™ to investigate previously unseen beneficial properties, which
have the potential to significantly enhance commercial opportunities.

Sederma has been investigating how SkinBiotix™ can be applied and has been
undertaking additional formal studies and formulations to establish potential
added benefits of the technology. These studies are due to run from late 2023
into early 2024.

Sederma/SkinBioTherapeutics contract extension

The contract with Sederma was set to run to November 2023. As a result of
findings, Sederma requested a formal extension to the contract with
SkinBioTherapeutics to ensure that the additional studies can be undertaken.
Under the original contract, Sederma is responsible for the development,
manufacturing, and commercialisation of the SkinBiotix™ technology.

However, the contract ensures any costs to SkinBioTherapeutics of supplying
SkinBiotix™ for the studies are covered by Sederma. Any material additional
benefits identified from the studies could be expected to strengthen Sederma's
commercial story for SkinBiotix™ as an active ingredient and it therefore
may command a higher price point with future customers.

Croda/Sederma

Croda's Consumer Care division, which includes Sederma, has the largest active
ingredients portfolio in the industry across over 15,000 customer/product
combinations. The Group's strategy is to drive it's market leadership by
adding innovative technologies and reinforcing the substantiation of its
ingredient claims.

Sederma is part of Croda's Beauty Active's business unit and is a specialist
in bioactive ingredients for the cosmetic industry. According to Croda's HY
results to 30 June 2023
(https://www.croda.com/mediaassets/files/corporate/half-year-results-2023/croda-h1-2023-results-statement-25-july-2023-final.pdf?la=en-GB)
, the Group reported that Sederma's premium active ingredients business grew
by over 30% through a mix of geographical expansion and the launch of new
customer products e.g. the new Boots no7 Future Renew range.

Croda has a global portfolio of personal care customers which comprise many of
the major international cosmetics and FMCG brands. Revenues from any licensed
products derived from the partnership will generate royalties based on global
sales revenues for SkinBioTherapeutics.

Dr Damian Kelly, Vice President Innovation & Technology Development at
Croda Europe Ltd, responsible for the project previously said:

"This [SkinBiotix™ programme] continues to be a fascinating project that is
heading towards commercialisation and will break new scientific ground in the
use of lysated bacteria in the cosmetic industry as a skin care active
ingredient. We have recently observed some additional unexpected technical
benefits during our projected scale-up activities which, if shown to be
efficacious through further in-vitro and in-vivo clinical trials, would then
offer significant supplementary applications and greater product valorisation
as a skin care cosmetic active.  We are excited by the findings we have seen
thus far and look forward to a long and prosperous relationship with
SkinBioTherapeutics."

On today's news, he added:

"This exciting project continues to move forward along the roadmap to
commercialisation, offering a totally unique ingredient as a skin active for
the cosmetic industry.  In-vitro and ex-vivo studies are complete, and
clinical (in-vivo) trials are planned to conclude in early 2024.  Four
pilot-scale semi-industrial fermentation batches, including down-stream
processing, have been completed, and commercial-scale batches are planned for
2024 at Croda's UK facility. Premium quality formulations have also been
developed.  We remain excited about this innovative product and are
appreciative of the working relationship we have with SkinBioTherapeutics."

 

The Global Cosmetics Market

The global skincare market size was valued at USD 135.83 billion in 2022 and
is expected to expand at a compound annual growth rate (CAGR) of 4.7% from
2023 to 2030.  Skincare products represent the largest segment within the
cosmetics market, fuelled by the increasing focus on skincare routines and
anti-aging products.

With the increased awareness of the importance of a balanced skin microbiome,
there has been a growing demand for microbiome-friendly cosmetic products on
the basis that they do not disrupt the natural microbial balance.

As SkinBioTherapeutics' own participant research data has indicated, products
that seek to rebalance the gut and skin microbiome can contribute to
alleviating the symptoms of various skin conditions, such as acne, rosacea and
psoriasis. Cosmetic companies are developing products specifically designed to
address these conditions by supporting a healthier microbial environment on
the skin.

 

Stuart J. Ashman, CEO of SkinBioTherapeutics, said:

"We are happy to extend our contract with Croda in order to continue the most
promising work that has been undertaken thus far. Sederma is a leading
organisation in the skincare market and we have long believed that partnering
with them will be mutually beneficial. We are confident that this can lead to
a wider commercialisation of our Skinbiotix(TM) technology into new products,
which can make a great difference to consumers with a wide array of skincare
needs."

 -Ends-

The information communicated in this announcement contains inside information
for the purposes of Article 7 of the Market Abuse Regulation (EU) No.
596/2014.

 

For more information please contact:

 SkinBioTherapeutics plc                                                      Tel: +44 (0) 191 495 7325

 Stuart J. Ashman, CEO

 Manprit Randhawa, CFO

 Cavendish Securities Plc (Nominated Adviser & Broker)                        Tel: +44 (0) 20 7397 8900

 Giles Balleny, Dan Hodkinson (Corporate Finance), Charlie Combe (Broking),

 Dale Bellis, Tamar Cranford-Smith (Sales)

 Instinctif Partners (financial press)                                        Tel: +44 (0) 20 7457 2020

 Melanie Toyne-Sewell / Tim Field / Adam Loudon                               SkinBioT (mailto:SkinBio@instinctif.com) herapeutics @instinctif.com
                                                                              (mailto:SkinBio@instinctif.com)

Notes to Editors

About SkinBioTherapeutics plc

SkinBioTherapeutics is a life science company focused on skin health. The
Company's proprietary platform technology, SkinBiotix®, is based upon
discoveries made by Professor Catherine O'Neill and Professor Andrew McBain.

The Company is targeting a number of skin healthcare sectors, the most
advanced of which are cosmetic skincare and food supplements to modulate the
immune system by harnessing the gut-skin axis. In each area
SkinBioTherapeutics plans to exemplify its technology through human studies.
The Company's first product, AxisBiotix-Ps™, a food supplement to address
the symptoms of mild to moderate psoriasis.

The Company listed on AIM in April 2017 and is based in Newcastle, UK.  For
more information, visit: www.skinbiotix.com (http://www.skinbiotix.com/) and
www.axisbiotix.com.

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