Why Ovine Collagen division is a honeypot for Holista Colltech (ASX:HCT)

Highlights

• Holista Colltech is the only company involved in manufacturing Australia-made sheep collagen.
• The product is culturally acceptable, fully traceable and disease free.
• The Ovine Collagen Division posted a 64% increase in sales in Q1 2022.

Research-driven biotech company Holista Colltech Limited (ASX:HCT) is powered by its passion for pulling out economic success while building a sustainable future for its customers and adding a greater value to their lives.

With its headquarters in Perth, Holista operates an extensive network across Malaysia and other parts of the world. The ASX-listed company is making a strong mark in the US$4.4-trillion global health & wellness industry as a prominent provider of first-class natural ingredients and wellness products.

Today, we will delve into the Olive Collagen Division that has made HCT a specialist in premium-grade collagen in the Australian market.

Soaring demand for Ovine Collagen

Holista’s Ovine Collagen business unit has made a huge contribution to the company’s swift recovery after the COVID-19 pandemic. The company recorded sales growth of 43% for the division in the fiscal year 2021. This is primarily because collagen is being used at a large scale as a natural biomaterial for producing a huge variety of cosmetic and skincare products.

In the first quarter of FY22 ended 31 March 2022, the division registered a 64% jump in sales to AU$122K. The sales growth was driven by increased orders from cosmetic manufacturer Behn Meyer, a specialty supplier for a wide variety of industries across the globe.

The company continues to develop further testing data for later exporting to China. Chinese state-owned enterprise, Guangzhou Sinbio Cosmetic Co, has expressed interest in testing the product. Sinbio intends to use the product as a substitute for the epidermal growth factor (EGF), which has been banned in cosmetics in 2021.

Let us know what makes this product so appealing to several industries.

Premium Ovine Collagen from Australia - Holista is the only company involved in the production of Australia-made sheep collagen. The high-purity collagen is extracted through patent-protected technology for several industries, such as cosmetics, supplements, personal care and food. The product is culturally acceptable, fully traceable and disease free.

Cosmetic Collagen: OVICOLL™

OVICOLL™ is a premium-quality ovine collagen marketed for cosmetic applications as OVICOLL™ 95 and OVICOLL™ 98. Product details include information about its concentrations and Halal certification.

Image Source: ©Kalkine Media®; ©rizelleannegalvez via Canva.com

Food Grade Collagen: OVINEX™

Holista’s food-grade ovine collagen, OVINEX™, is marketed as OVICOLL™ for use in functional food & beverages, dietary supplements, nutritional bars, and nutraceutical and cosmeceutical products.

The collagen produced by Holista helps in the regeneration of joints as it accumulates around cartilage, which keeps joints’ connective tissues flexible and strong. Also, collagen improves bone density by catalysing cell growth that aid in building bones and in fighting osteoarthritis and osteoporosis.

Moreover, food-grade ovine collagen helps in skin rejuvenation by promoting skin elasticity. As per studies, the level of natural collagen in human skin lowers down with increasing age, which leads to wrinkles and sagging. However, skin can become firm and youthful again by nourishing it with collagen.   

Stock information: HCT’s shares traded at AU$0.037 on 07 July 2022, up more than 2% from the last close. The company has a market capitalisation of AU$9.91 million.