SkinBioTherapeutics pleased with progress on two fronts

Skin health-focussed life science company SkinBioTherapeutics said in an update on Wednesday that its partner Sederma, a division of Croda International, was planning to undertake additional studies on SkinBiotix.

The AIM-traded firm said the studies were expected to enhance the commercial opportunity of its technology.

Under the commercial agreement signed in November 2019, Sederma was responsible for the development, manufacturing, and commercialization of SkinBiotix technology.

As the design and build of the facility for the production of the active ingredient had progressed, Sederma had conducted concurrent investigations in focussed application areas.

As a result of those investigations, the Sederma team was now seeking to undertake additional formal studies to investigate potential added benefits of the technology.

The company said the further studies were expected to take an additional three to four months, and would run from November through to the first quarter of 2024.

Any additional benefits identified from the studies would enable Croda and Sederma to add to the commercial opportunity for SkinBiotix as an active ingredient, and could lead to enhanced claims, and thus a higher price point in the market.

The costs of the additional studies would be paid for by Sederma.

Any licensed products resulting from the agreement with SkinBioTherapeutics would be sold to Croda's global portfolio of personal care customers.

SkinBioTherapeutics said it would be paid tiered royalties based on global sales revenues on any licensed products derived from the partnership.

SkinBioTherapeutics also updated the market on the European expansion of its AxisBiotix-Ps product.

Sales had now started in Spain, and preparations were underway to launch in Italy, followed by France later in the year.

Each country required approval from the respective healthcare regulators, and talks were progressing well in both locations.

Sales were being managed by the UK AxisBiotix team.

The firm’s management said it was also negotiating terms with potential vendors of its previously-announced acquisition target.

SkinBioTherapeutics said it was continuing to explore potential acquisition opportunities, but said any transaction would need to be truly accretive as well as sector relevant, and scientifically focussed, before it was considered.

“We remain pleased with the progress of our partnership with Croda even though we have not been able to say much about the work underway for commercial sensitivity reasons and we are encouraged by the reaction from the Sederma team,” said chief executive officer Stuart Ashman.

“We also share their belief that there may be additional properties which could enhance the sales opportunity of SkinBiotix.”

Ashman said that as previously announced, the company also commenced sales of AxisBiotix-Ps in Spain in order to help people suffering from the symptoms of psoriasis.

“Receiving approval from the Spanish health authorities to proceed, the launch of our Spanish commercial site and early positive responses from potential customers provides additional validation of our product.”

At 1227 BST, shares in SkinBioTherapeutics were down 9.93% at 15.65p.

Reporting by Josh White for Sharecast.com.