EZZ is finishing off a successful year with the launch of two new products as it strengthens its foothold in the life sciences sector.
EZZ Life Science Holdings (ASX:EZZ) have added two new consumer health products to its range, which will be sold in pharmacies around Australia.
The company announced EZZ Biotic EnGastro Capsule and EZZ Biotic HHP Support Probiotic will help promote a healthy digestive system and immune system function, treat diarrhea and reduce symptoms of medically diagnosed Irritable Bowel Syndrome (IBS).
The new EZZ branded Biotic products aim to target the bacterial balance in the gut and provide effective microbiome digestive support where imbalances can activate the immune system.
Both products also aim to combat Helicobacter Pylori, which is a common type of bacteria that grows in the digestive tract and tends to attack the stomach lining, causing stomach ulcers and also increases the risk of stomach cancer.
Around 44 per cent of people worldwide have an H. Pylori infection, according to a study from 2018.
EZZ Biotic Engastro Capsule is a proprietary blend of Saccharomyces boulardii, Glutamine, with fungal and plant-derived enzymes in optimally high dosages to support immune and digestive function, as well as nutrient absorption.
The product aims to assist digestion of sugar, fats, and proteins, relieves abdominal discomfort and bloating and symptoms of IBS. It supports healthy gastrointestinal immune function and reduces diarrhoea and its symptoms.
EZZ’s HPP Support Probiotic is an evidenced based multi-species probiotic that consists of eight beneficial strains of bacteria which are effective in relieving symptoms of diarrhea and reducing the occurrence of symptoms of IBS.
The product relieves abdominal discomfort and helps restore beneficial gut flora, supporting intestinal and digestive system health, skin health and overall immune system health.
EZZ focusing on four key areas of human health
Established in 2018, EZZ listed on the ASX on March 3, 2021 after an oversubscribed public offering. The company has been transitioning into a fully integrated life sciences company, with a mission to improve quality of life and human health.
The company focuses on genomic research and product development to address four key areas affecting human health including genetic longevity, human papillomavirus (HPV), helicobacter pylori and weight management.
EZZ has undertaken university partnerships to advance research into these four key areas.
It has also earmarked establishing a Good Manufacturing Practice (GMP) certified manufacturing facility in Australia or New Zealand to improve production efficiency.
EZZ branded health supplements were launched in March 2020 with revenue starting at a low base of $800K — representing less than 5% of revenue in that year. However, that figure surged to $11.4m in FY21, representing 51% of the company’s total revenue.
EZZ appoints veteran biotech player as chairman
EZZ has bolstered its leadership team with the appointment of former CEO and COO of AusBiotech (Australia’s biotechnology organisation) Glenn Cross as its new chairman and non-executive director.
Cross has more than 40 years’ experience in the life science sector domestically and internationally, including ~20 in senior executive roles and will help steer the company through the next stages of its dynamic growth plans.
In Australia and New Zealand, the company is developing new distribution channels for its branded products, some of which are already sold in membership warehouse Costco.
EZZ is building brand awareness in China along with other Southeast Asian markets including Singapore, Malaysia, Thailand, Philippines, Indonesia and Vietnam by setting up stores on major e-commerce platforms. North America and Europe are also target markets for EZZ products.
Equity firm labels EZZ stock as undervalued
A comprehensive report by equity firm ASR Wealth Advisors has found EZZ stock is undervalued. While at the time of writing their report EZZ shares were at 53 cents, ASR placed an implied share price up ~64% at 87 cents.
According to ASR, EZZ is in a solid financial position with growing revenue and gross margins. The company has net assets of around ~$10 million and ~$8.9m cash with minimal low debt figures. Revenue increased by 29% to $22.3m from FY20 to FY21 with profit margins up from 5.26% to 8.33% during the same period.
Despite its new listing EZZ has already paid a maiden, fully franked dividend of 0.45 cents per share. The dividend represented a payout ratio of 7.5% based on the company’s earnings per share of $5.98 ,which increased by 13% throughout FY21.
Launch of new products part of growth strategy
Co-founder and interim CEO Mark said the launch of EZZ Biotic EnGastro Capsule and EZZ Biotic HHP Support Probiotic were part of the company’s strategic plan.
He said consumers are seeking digestive support products that are fast acting and can be easily accessed over the counter.
“These new additions greatly complement EZZ’s broader health and wellbeing range which we have been purposefully expanding in line with our IPO strategy,” he said.
“Their launch reflects our ability to move quickly and opportunistically to develop products that meet consumer-led demand in high margin, health and wellbeing segments.”
This article was developed in collaboration with EZZ Life Science Holdings, 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.