eSense is speeding down the commercialisation highway
Health & Biotech
Health & Biotech
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Special Report: The last two quarters have seen eSense-Lab is moving quickly down the road to commercialisation.
Life-sciences research and development company eSense-Lab (ASX: ESE) is well on the commercialisation pathway for its terpene-based products, hitting a number of key strategic milestones and contracts during the last two quarters.
The company says milestones including establishing joint ventures and an entre into the US leave it well positioned to increase sales and revenue growth.
“We have worked hard to achieve a number of strategic and operational milestones over the last four months, and are proud of the progress to date,” said eSense chief Itzik Mizrahi.
“In addition to their therapeutic and wellness benefits, our terpenes have exciting possible applications in a post-COVID world, and are focused on being well positioned to service this growing market. We are hard at work continuing to pursue more joint-venture opportunities and researching further potential applications of our technology.”
During the past two quarters eSense has signed joint ventures with a range of companies, from SeaLaria for therapeutic skin creams, Blue Science and Wise Wine for hand and surface sanitisers, and ANZ for skin care and sanitisers.
eSense says that by establishing joint ventures for mutual development of products with different partners, it is positioning across multiple revenue-generating markets.
The deals also demonstrate the broad range of applications of eSense’s terpenes.
This year, the company said significant changes were made to its leadership team and business strategy in order to best leverage its core terpenes technology for revenue growth.
eSense says it has favoured this approach as it reduces the upfront capital expenditure required to expand global reach, and significantly reduces costs associated with sales and distribution.
Since then, the company has been able to leverage the distribution channels of its partners to gain access to four significant global markets; Israel/Middle East, Australia, China and the US.
In July eSense scored one of its biggest coups: a pathway into the massive US market.
It signed an exclusive Sales Agency Agreement with US-based Blue Science Solutions to expand into the world’s largest consumer market for terpenes-based products. Blue Science is an established US-based company that delivers non-toxic cleaning and disinfecting solutions across a variety of industries.
“We came across e-Sense in our search for a partner to develop skin-friendly hand sanitiser solution. By combining terpenes with our core active technology, hypochlorous acid, we hope to create a gentle, yet powerful hand sanitiser solution to add to our range. We are looking forward to the results of our combined expertise,” said Blue Science CEO Slade Smith.
The Sales Agency Agreement provides access to Blue Science’s scientists to assist in product development; an exclusive agreement covering the distribution in the US of all terpenes based cleaning and disinfecting products to be developed; local sourcing of ingredients and manufacturing; access to an established supply chain network across the US; access to the IBM Rapid Supplier Connect Network; and logistics expertise.
The deal sets a minimum sales targets of $3m in the first 12-months, and $10m over a 5 year period.
eSense’s lab continues researching and testing its proprietary terpene mix, TRP-ENV with promising results of terpenes’ anti-viral synergistic effects.
Discussions are ongoing with several Israeli universities, hospitals and virology labs to establish further testing and research into the exact nature of terpenes’ anti-viral abilities.
TRP-ENV is intended to be used for the creation of hand and surface sanitisers with enhanced anti-viral properties, together with a significant reduction in the sanitiser’s ethanol levels (ethanol can be an irritant to the skin).
Further, eSense is investigating additional distribution and sales agreements with other partners to broaden its exposure within Australia and globally, and will announce to the market when appropriate.