The Company completed its human safety study for the cosmetic application in early 2019 and having generated data, progressed its discussions with third parties interested in licencing the technology. This culminated in the agreement with Croda (RNS 20 November 2019).
Under the terms of the agreement, SkinBioTherapeutics' proprietary SkinBiotix(R) platform will be paired with Croda's expertise in the development and commercialisation of unique, sustainable, cosmetic ingredients, focusing specifically on the growing skincare actives market. Sederma, part of Croda International plc, is a specialist manufacturer of bioactive ingredients for the cosmetic industry and will be responsible for the development, manufacturing and commercialisation of the SkinBiotix(R) technology.
Croda will be creating a separate manufacturing line for the technology. As design and manufacture of the active ingredient are carried out, there will be concurrent testing in focused ingredient application areas which will be detailed in further, additional agreements.
Any licensed products resulting from these agreements will be sold to Croda's global portfolio of Personal Care customers, which amount to >12,000, some of which are the leading companies and brands in the market. SkinBioTherapeutics will be paid tiered royalties based on global sales revenues on any licensed products subsequently derived from the successful development of the partnership. Recognising the development activity required by Croda, the Company anticipates revenue generation to commence from these additional agreements during 2021.
Sales and distribution rights are for the cosmetic sector alone, leaving SkinBioTherapeutics to focus on further applications of its technology in other sectors. A key component of the Croda agreement is access to a reliable supply of material, and Croda will supply SkinBiotix(R) for the Company to be able to use in sectors outside of those covered by this agreement.