Finalisation of commercial agreement with Croda

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. In October 2023, Croda extended its contract 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."

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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 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.

For more information please contact:

SkinBioTherapeutics plc Stuart J. Ashman, CEO Manprit Randhawa, CFO	[phone]
Cavendish Capital Markets Limited (Nominated Adviser & Broker) Giles Balleny, Dan Hodkinson (Corporate Finance) Charlie Combe (Broking) Dale Bellis, Tamar Cranford-Smith (Sales)	[phone]
Vigo Consulting (financial press) Rozi Morris	[phone] [e-mail]

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.

 

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