REG - SkinBioTherapeutics - Finalisation of commercial agreement with Croda

SkinbiotherapeuticsAnnouncement

19/11/2024 07:00

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RNS Number : 7008M  SkinBioTherapeutics PLC  19 November 2024

 

SkinBioTherapeutics plc

("SkinBioTherapeutics" or "the Company")

 

Finalisation of commercial agreement with Croda Beauty Care for SkinBiotix

·    Commercial terms finalised on the basis of claims from additional
studies

·    Croda's roll-out and forecasts expected to remain confidential given
sensitivity prior to launch

·    Based on management's baseline expectations for sales under the Croda
agreement plus sales from new acquisitions, Dermatonics and Bio-Tech
Solutions, the Group is expected to be cash flow positive from FY2025

·    Fireside chat between Stuart Ashman, CEO, and Elric Langton, Small
Company Champion on Investor Meet Company Platform at 09.00 GMT on Friday 29
Nov 2024

19 November 2024 - SkinBioTherapeutics plc (AIM: SBTX), a life science company
focused on skin health, announces that it finalised the commercial terms of
its agreement with Croda plc, based on the final testing of the SkinBiotix™
technology.

The terms are based on the original agreement with SkinBioTherapeutics being
paid tiered royalties based on global sales revenues on any licensed products
derived from the partnership.

SkinBioTherapeutics signed the original commercial and manufacturing agreement
in November 2019
(https://irs.nbtrader.co.uk/ir/SkinBiotix/newsArticle.php?id=2969255&ST=SBTX)
. In October 2023, Croda extended its contract
(https://irs.nbtrader.co.uk/ir/SkinBiotix/newsArticle.php?id=311428232704626475&ST=SBTX)
with SkinBioTherapeutics by 12 months, in order to run additional clinical
studies on the SkinBiotix technology. The aim was to investigate previously
unseen beneficial properties which could enhance SkinBiotix's commercial
potential with the cosmetics industry.

As previously announced, the results of the additional studies were all very
positive, and the product is now in the marketing and commercialisation
phase.  The formal, public launch of SkinBiotix as an active ingredient is to
take place at In-Cosmetics Global, the world's largest cosmetic ingredients
exhibition, in Amsterdam (April 8-10, 2025).

Sales and distribution rights are for the active cosmetic sector alone,
leaving SkinBioTherapeutics to focus on further applications of its technology
in other sectors.

Under the terms of the agreement, all details about formulation, functionality
and Croda's financial expectations remain confidential due to the
competitiveness of the cosmetics market. However, management is fully
confident in Croda Beauty's deep experience in launching new products. Any
royalty revenues arising from future sales will be reported to the market at
the appropriate time.

Based on management's baseline expectations for sales under the Croda
agreement and new sources of revenue from recent acquisitions, Dermatonics and
Bio-Tech Solutions, management expects to be cash flow positive from FY2025.
Management therefore anticipates that no further raises for working capital
will be required. Following the meetings with Croda, management can confirm
that revenues will be received before year end.

Stuart Ashman, CEO of SkinBioTherapeutics will be discussing the recent news
flow in a "fireside chat" with Elric Langton of Small Company Champion on
Friday 29 November at 09.00 GMT on the Investor Meets Company Platform. For
further details, please see below.

Stuart Ashman, CEO of SkinBioTherapeutics, said:

"We have finalised the commercial terms with Croda which are in line with our
long standing expectations and we believe they represent a great deal for the
Group. Furthermore, we have been deeply impressed with the experience and
track record of the commercial team which includes the launch of multimillion
pound blockbuster products such as Matrixyl and we are very confident in our
partner's plans for the launch and commercialisation of SkinBiotix.

"As the commercial plan unfolds, management's baseline revenue expectations
together with the financial contributions from our organic and new inorganic
businesses (Dermatonics and Bio-Tech Solutions), mean we do not anticipate
having to come back to the market for new funds for working capital purposes."

-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.

 

Fireside Chat with Lemming Investor

There will be a pre-recorded fireside chat between Stuart Ashman, CEO and
Elric Langton of Small Company Champion issued via the Investor Meet Company
platform at 09.00 GMT on Friday 29 November 2024. Following the interview,
there will be the opportunity for investors to ask questions of Stuart Ashman.

The session is open to all existing and potential SkinBioTherapeutics
shareholders. Questions can be submitted pre-event via the Investor Meet
Company dashboard
(https://www.investormeetcompany.com/companies/skinbiotherapeutics-plc) up
until 28 November 2024 or at any time during the session.

Investors who already follow SkinBioTherapeutics on the Investor Meet
Company platform will automatically be invited. Investors can sign up
to Investor Meet Company for free via this link
(http://www.investormeetcompany.com/companies/skinbiotherapeutics-plc) .

 

For more information please contact:

 

 SkinBioTherapeutics plc                            +44 (0) 191 495 7325

 Stuart J. Ashman, CEO

 Manprit Randhawa, CFO

 Cavendish Capital Markets Limited                  +44 (0) 20 7220 0500

 (Nominated Adviser & Broker)

 Giles Balleny, Dan Hodkinson (Corporate Finance)

 Charlie Combe (Broking)

 Dale Bellis, Tamar Cranford-Smith (Sales)

 Vigo Consulting (financial press)                  +44 (0) 20 7390 0230

 Rozi Morris                                        SkinBio@vigoconsulting.com

Notes to Editors

About SkinBioTherapeutics plc

SkinBioTherapeutics is a life science company focused on skin health. The
Group's proprietary platform technology, SkinBiotix®, is based upon
discoveries made by the translational dermatology team at the University of
Manchester.

The Group's foundation business is targeting the skin healthcare market via
five pillars, the most advanced of which are cosmetic skincare (SkinBiotix)
and food supplements to modulate the immune system by harnessing the gut-skin
axis (AxisBiotix). The cosmetic pillar has a partnership with Croda plc and
the Group's first in-house product, AxisBiotix-Ps™, is a food supplement to
address the symptoms of mild to moderate psoriasis.

The Group is also acting as a consolidator and is making acquisitions in
complementary areas such as skin care and cosmetic applications, that also
bring new distribution and geographical platforms, and manufacturing
capabilities through which it can funnel its in-house pillar products.

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

 

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