EZZ is capitalising on an increasing focus on the life sciences sector as an ageing global population puts intense demand on health and wellbeing.
Genomic-tech firm, EZZ Life Science Holdings (ASX:EZZ) is embracing opportunities in the life sciences sector, which is one of the fastest growing industries in the world.
Life sciences covers a broad range of companies from research, development and manufacturing of pharmaceuticals, biotechnology-based food, medical devices, biomedical technologies, nutraceuticals, cosmeceuticals, food processing and other products.
EZZ Chairman and non-executive director Glenn Cross told Stockhead the COVID-19 pandemic has raised the profile of the life sciences sector.
Cross has more than 40 years’ experience in the life science sector domestically and internationally, including ~20 in senior executive roles. He was the former CEO and COO of AusBiotech – Australia’s biotechnology organisation.
“The pandemic has highlighted to many people just how important your health is, the importance of looking after your health and wellbeing and the role of the life science sector,” Cross said.
“There’s a lot more focus on health and wellbeing and quality of product that are used in the health sector worldwide.”
Innovations across the sector – from vaccines to treatments – have already changed our lives in a time of COVID-19, he says.
“There would still be much of the world in lockdowns and commerce destroyed globally and we would be in a big mess,” Cross said.
“The ability of the sector to produce vaccines and therapies in timeframes unheard of before has made a lot of people aware of the sector more broadly.”
Projections for strong growth
The life sciences sector has experienced significant growth. As of end-2020, the total global pharmaceutical market was valued at ~$US1.27 trillion U.S. dollars. This is a significant increase from 2001 when the market was valued at ~$US390 billion.
The size of the global biotechnology market was ~$US449 billion in 2020 and is forecast to grow to $US727 billion annually by 2025, while the global medical device business was appraised at $US456 billion in 2019.
Discoveries of new illnesses combined with a strong desire of an ageing population to live longer and enjoy a better quality of life as they age is increasing focus on the life science sector.
EZZ is working to become a top life science company in Australia and New Zealand. Its core focus has been on genomic health and developing a product pipeline of healthcare solutions based on genomics research.
EZZ is focusing its genomic research and product development to isolate and unpack four key areas including:
- genetic longevity
- human papillomavirus (some 80% of sexually active adults have it)
- helicobacter pylori (a bacteria that grows in the digestive tract which causes stomach ulcers and increases risk of stomach cancers)
- weight management.
The company offers health supplements, health food and probiotics as well as skincare products under two brands, EZZ and EAORON respectively.
EZZ and EAORON products are sold in pharmacies, supermarkets and specialist retailers in Australia and New Zealand.
South-east Asia is a key target for expansion, with Singapore and China already distributing its products, with negotiations under way with potential distributors in Malaysia.
The company also sees opportunities in Thailand, Vietnam, the Philippines, and Indonesia.
Sales from our flagship stores on Tmall Global – China’s largest cross-border B2C online marketplace have accrued $11 million in revenue since launching in August 2020.
EZZ is expanding to other major e-commerce platforms in mainland China, as well as via online and off-line distribution channels in Hong Kong and Taiwan.
Greater awareness of TGA
Cross said the Therapeutics Goods Administration (TGA) has risen in prominence since the pandemic.
The TGA is part of the Australian Department of Health and is responsible for regulating therapeutic goods including prescription medicines, vaccines, sunscreens, vitamins and minerals, medical devices, blood, and blood products.
“Three years ago, if you’d asked 10 people in the street what the TGA was, probably eight of them wouldn’t have had any idea,” Cross said.
“So, in terms of a focus on regulatory control and approval of quality products that people put in their body, then the pandemic has certainly highlighted that to a great extent in the general population.”
Cross said Australia’s TGA has a strong reputation as one of the world’s top regulatory bodies.
“The FDA in the US is probably the most recognised, but the TGA is up there with regulatory bodies in Canada, the UK, Japan, France and Germany as one of the top in the world,” he said.
“It’s there to ensure the products it registers are safe, manufactured with quality components and under quality conditions.
“It also ensures what manufacturers and distributors say their products can do has been verified and finally they have post compliance surveillance to make sure nothing happens with the product over a period of time.”
Importance of TGA approval
Cross said almost all EZZ products are TGA approved so people can feel reassured they have been verified and manufactured to high quality standards.
“The main EZZ products are registered by the TGA under the ARTG (Australian Register of Therapeutic Goods),” Cross said.
“Our products have all been manufactured under good manufacturing practice and the ingredients all checked by the regulator and we have approval to sell our products in Australia – and make the claims we do on our packaging and brochures.
Cross said the focus on TGA approval and high-quality was one of the reasons he joined EZZ.
“My background has been in regulated products across the board including diagnostic, medicines and medical devices so I was very comfortable with the fact EZZ complied with those regulatory conditions and standards,” he said.
Focus on R&D and manufacturing
EZZ has entered local and international university partnerships to drive the momentum of research into human papillomavirus and genetic longevity.
“We have a robust R&D program with the University of Technology in Auckland and are actively looking for new products which are a strategic fit for EZZ,” he said.
It has also earmarked establishing a Good Manufacturing Practice (GMP) certified manufacturing facility in Australia or New Zealand to improve production efficiency.
“We are actively and our strong intent to have a GMP facility by the end of 2022,” he said.
“We are on the acquisition trail and looking at increasing our product range.”
This article was developed in collaboration with EZZ, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.