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TAIPEI, Dec. 6, 2024 /PRNewswire/ -- Cordyceps Sunshine Biotech Holdings Co., Ltd. 【C.S】 Group, Taiwan's largest chain specializing in Taiwanofungus products, has officially announced its entry into the global pet medication market with a groundbreaking new drug. On November 30, 2024, the company co-hosted the "Taiwanofungus Fungal Technology and Pharmacological Research Progress Seminar" in Taipei with the Chinese Herbal Fungi Industry Research and Development Association (CHFIRDA). During the seminar, 【C.S】 Group revealed plans to produce a topical ointment using Antcin A, a key compound extracted from Taiwanofungus, aiming to address the demand in the global steroid-based pet medication market.
Extraction and purification of the key compound in Taiwanofungus, Antcin A.
Vincent Liu, director at 【C.S】 Group, highlighted the company's unique position as one of the few biotech startups capable of vertically integrating the entire production chain—from fungal strain development, cultivation, extraction, and purification to large-scale production and distribution. It is expected that the active ingredients will be further extracted, making it an ideal candidate for the development of botanical new drugs.
A report by Market Research Engine projects the global botanical drugs market to reach $47.4 billion by 2028, with a compound annual growth rate (CAGR) of 6%. Antcin A, a signature sterol compound derived from Taiwanofungus, serves as a precursor for many bioactive compounds but is challenging to extract due to its scarcity in wild strains. Leveraging proprietary breeding techniques and patent-protected cultivation methods, 【C.S】 Group has successfully optimized the production of Antcin A, enabling scalable extraction and purification.
(Left) Vincent Liu, Director of 【C.S】 Group; (Right) Dalan Huang, President of 【C.S】 Group
Entering the Global Steroid-Based Pet Medication Market
Dr. Jia-Xin Huang, a renowned Taiwanofungus expert, The effects of Antcin A have been recognized by the industry for a long time. However, the extraction process requires a large amount of Taiwanofungus raw materials, which is very costly and few industry players can overcome it. As a result, the market demand far exceeds the supply. If it is to be commercialized in the short term, it is very suitable to be introduced into the pet external preparation market first.
Dr. Chiao Li, a U.S. listing advisor for 【C.S】 Group, emphasized the immense potential of the global pet market, particularly in North America. According to the American Pet Products Association (APPA), as of 2017-2018, there were 84.6 million pet-owning households in the U.S., with 94.2 million cats and 89.7 million dogs. The pet industry is projected to reach $150 billion by 2024. Furthermore, Asia has emerged as a fast-growing pet market, with substantial growth momentum. In developed regions like Europe and the U.S., spending on pets—including medical care, medications, food, and insurance—is well-established. As pet ownership rises globally, fueled by aging populations and declining birth rates, demand for pet medications is expected to increase.
Innovative Solutions for a Growing Market
Dalan Huang, President of 【C.S】 Group, cited a Research Nester report projecting the global pet medication market to reach $22.58 billion by 2024, with a CAGR exceeding 9.7% through 2036, potentially surpassing $69.8 billion. Steroids remain a common treatment option but are often stigmatized due to their side effects. With the anti-inflammatory efficacy of Antcin A, 【C.S】 Group aims to introduce a novel steroid alternative that reduces reliance on conventional steroids while minimizing side effects, a solution likely to appeal to both veterinarians and pet owners.
The Taiwanese pet medication market is valued at approximately NT$60 billion, with NT$12 billion attributed to livestock and NT$48 billion to pets. Taiwan's Institute for Economic Research (TIER) estimates that the pet population will reach 4 million by 2025, ensuring steady market growth.
Promising Growth in the U.S. Capital Market
In recent years, the U.S. capital market has introduced pet-themed ETFs, reflecting the long-term revenue potential of the pet industry, where the average pet lifespan of 10-15 years provides stable income streams resilient to economic fluctuations. 【C.S】 Group's classification in the U.S. stock market as a company specializing in medicinal plants is supported by its exclusive cultivation techniques for Taiwan's native Taiwanofungus. With large-scale production facilities in Taiwan, the company has achieved a CAGR of 41% in the Taiwanese market between 2023 and 2024. Building on the Asia pacific herbal health and pharmaceutical markets, 【C.S】 Group's expansion into the global pet steroid medication market is set to drive significant revenue growth with a bright outlook ahead.
