Special Report: Skincare company Skin Elements (ASX:SKN) has pivoted to disinfection during the pandemic – and says that regulatory approval of its hospital-grade Invisi Shield product could be transformational for the tiny company.
Skin Elements had been working for two years into a line of alcohol-free plant-based hand sanitisers when the pandemic hit and began to bring the project to commercialisiation in March.
Now the company is just waiting for approval from Australia’s Therapeutic Goods Administration for the Invisi Shield to be listed on the country’s Register of Therapeutic Goods following its application in November.
Success would allow the company to make more detailed and specific product and label claims regarding the natural disinfectant product, opening up commercial-scale opportunities for sale of the disinfecting products.
Executive chairman Peter Malone says the company is optimistic, given that lab tests performed in London have already confirmed the alcohol-free sanitiser is more than 99.99 per cent effective against a surrogate of the novel coronavirus that causes COVID-19.
The natural organic product is revolutionary because it kills germs, viruses and bacteria without the use of alcohol.
“Alcohol’s the last thing you want to kill things with,” he said, as it is so harsh on the skin as well as flammable.
“There’s also side effects with chemical products in the human body.”
The Invisi Shield products are plant-based, all natural, and very effective, Malone said.
The range of products will be available as personal sprays, room sprays, a foamer and a commercial fogging application
“Invisi Shield is game-changing in terms of the ways you can use this product to protect yourself.”
Distribution network in place
Skin Elements already have four key distributors in Australia and New Zealand. A new dedicated, fully responsive Invisi Shield website is ready for a launch this month, the company says.
Malone compares the company to New Zealand’s Zoono Group (ASX:ZNO), a hand sanitiser company that was one of the biggest early winners of the pandemic. ZNO shares went from under 10c in Early October 2019 to around $1.25 today.
This gives the Auckland-based company a market capitalisation of over $200 million.
Skin Elements shares have lately been trading around 10c, giving the company a valuation of around $35 million.
The company announced on Tuesday that it had received $1.6 million from the exercise of options that were expiring on December 31.
Malone is optimistic that the Invisi Shield will be transformational not just for the company, but how we protect ourselves from germs.
“It’s almost like Tesla’s product was to gasoline engines,” he says.
This article was developed in collaboration with Skin Elements, 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.