As EZZ continues transformation into a fully integrated life sciences company it plans on a global expansion in 2022, capitalising on strong market demand.

EZZ Life Science Holdings (ASX:EZZ) aims to build on a successful 2021 with a focus on the international markets, where it has seen strong product demand.

The company’s focus on sales in international markets and the launch of its own branded products in 2021 has proven to be a strategically good move.

Sales from its flagship online store on Tmall Global in China have reached almost $11 million since it opened in August 2020.

EZZ has a rapidly growing e-commerce and TikTok community in China. The company plans to capitalise on its growing popularity by expanding its presence on Chinese WeMedia and e-commerce platforms, including Tmall, Taobao, JD, Douyin and Pinduoduo.

Furthermore, EZZ has had its products stocked on shelves in Chemist Warehouse’s expanding presence in China.

Former CEO and COO of AusBiotech, Glenn Cross was recently appointed chairman and non-executive director to oversee EZZ’s growth and transformation into a fully integrated life sciences company.

Cross has more than 40 years’ experience in the life science sector domestically and internationally, including ~20 in senior executive roles

“There’s been growth across the board in sales but certainly also good strong growth in our China business,” Cross said.


Four key focus areas

EZZ is on a mission to improve quality of life and human health. In its annual report, the company unveiled its four-pronged business strategy that would turn its business to a fully focused genomic health company.

It’s already begun leveraging its genomic research and product development to isolate and unpack four key areas of being alive that are affecting us all:

  • genetic longevity (yes, you’re getting older)
  • human papillomavirus (some 80% of sexually active adults have it, so… )
  • helicobacter pylori (it’s not stress causing that ulcer)
  • weight management (it’s probably stress).

The company  has been engaging the best and brightest through local and international university partnerships to drive the momentum of ground-breaking research into human papillomavirus and genetic longevity.

It has also earmarked establishing a Good Manufacturing Practice (GMP) certified manufacturing facility in Australia or New Zealand to improve production efficiency.

Genomics is already being used extensively in cancer and infectious diseases, but EZZ believes that it’s one of the first companies to focus on these key areas.

Cross said individualised testing will be a key profit-making component for EZZ as it moves forward in the genomic space.

“As we pivot to these new areas, there is evidence EZZ can do it because they’ve continually delivered on their plans,” he said.


Product expansion

EZZ launched two new consumer health products to its range in December.  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).

Both products aim to combat helicobacter pylori, which is a common bacteria that grows in the digestive track.

EZZ has significantly expanded its product line.  From a single anti-aging product to a suite of products including EZZ Mixed Fruit Jelly, EZZ Male Boost Stay Energizer, EZZ NMN 150,000 mcg, Daily Energy & Wellbeing to name but a few.


EZZ undervalued

A comprehensive report by equity firm ASR Wealth has found the EZZ stock price should be valued much higher, considering they could untap significant earnings growth on the back of higher sales revenue and improved margins through expansion of its product range.

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.

Established just three years ago, after an over-subscribed public offering, EZZ listed on the ASX in March 2021.

Unlike the great majority of biotech companies on the ASX still in cash-burn mode,  EZZ is profitable.

EZZ recorded strong FY21 results across all key metrics with a strong balance sheet and no external debt other than leases.

FY21 revenue increased by 29% to $22.3m, exceeding the expected growth of 25%, while gross margins significantly rose from 23% to 56%.

The report highlighted as a strength development of EZZ branded products, which have gross margins in the 80% range and said expanding the product range “could untap significant earnings growth”.

Global expansion

In Australia and New Zealand, EZZ is developing new distribution channels for its branded products including establishing online stores on key e-commerce platforms for direct-to-consumer sales.

Four of EZZ’s products are already available in 100 Sasa stores in Hong Kong and Macau. EZZ is also expanding its presence in southeast Asian markets including Singapore, Malaysia, Thailand, Philippines, Indonesia and Vietnam.

North America and Europe are also target markets for EZZ products.

International distribution agencies are being added to the company’s customer list including in the USA and Singapore. At the same time, the brand’s in house online platform is being built as a main sales channel in the future.

The company will also join hands with Watsons and Costco to inject new impetus into EZZ’s successful offline market expansion.

This article was developed in collaboration with EZZ Life Science, 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.