SkinBioTherapeutics plc (SBTX:AIM) Finalizes Commercial Agreement with Croda Beauty Care for SkinBiotix™ Technology

Highlights:

• Commercial terms finalized with Croda, based on successful results from additional clinical studies.
• SkinBioTherapeutics expects to be cash flow positive from FY2025, with no further capital raises required.
• CEO Stuart Ashman to discuss the deal and future plans in a "fireside chat" on 29 Nov 2024.

SkinBioTherapeutics plc (AIM: SBTX), a leading life science company focused on skin health, has announced the finalization of the commercial terms of its agreement with Croda plc, a global leader in the beauty and personal care sector. This agreement follows the successful conclusion of additional clinical studies on the SkinBiotix™ technology, which have demonstrated enhanced properties that significantly boost the product's commercial potential in the cosmetics industry.

The final terms of the agreement between SkinBioTherapeutics and Croda are based on the original contract signed in 2019, with SkinBioTherapeutics set to receive tiered royalties based on global sales of any products derived from the SkinBiotix™ technology. These payments are expected to be a key revenue stream for SkinBioTherapeutics as Croda progresses with the marketing and commercialisation of the product.

In October 2023, Croda extended its agreement with SkinBioTherapeutics by an additional 12 months to conduct further clinical trials. These studies, designed to uncover previously unseen beneficial properties of SkinBiotix™, have yielded positive results that are expected to significantly enhance the product's appeal in the active cosmetic ingredients market. SkinBioTherapeutics now enters the commercialization phase, with the official public launch of SkinBiotix™ scheduled for In-Cosmetics Global in Amsterdam, taking place from April 8-10, 2025.

While sales and distribution rights for SkinBiotix™ are limited to the active cosmetics sector, the partnership allows SkinBioTherapeutics to explore additional applications of its technology in other sectors, expanding its potential for growth. Croda’s deep expertise in launching high-value products, including the blockbuster ingredient Matrixyl, gives SkinBioTherapeutics confidence in the success of this partnership.

Based on management’s baseline revenue projections from the Croda partnership, combined with the expected contributions from recent acquisitions such as Dermatonics and Bio-Tech Solutions, SkinBioTherapeutics expects to become cash flow positive by FY2025. The company has stated that it anticipates no further need to raise capital for working capital purposes. This is a significant milestone, as it marks a shift towards financial independence and stability for the Group.

The confidentiality surrounding Croda’s financial forecasts and product formulations reflects the competitive nature of the global cosmetics market, with further details to be disclosed at the appropriate time. However, SkinBioTherapeutics remains confident that the royalties from future sales will be a strong and reliable revenue stream.

To provide further insights into the recent developments and future plans, Stuart Ashman, CEO of SkinBioTherapeutics, will participate in a "fireside chat" with Elric Langton, Small Company Champion, on the Investor Meet Company Platform. The session will take place at 09:00 GMT on Friday, 29 November 2024. Investors and stakeholders can tune in for updates on the partnership with Croda, as well as the Group’s broader strategy for growth and commercialization.

Stuart Ashman, CEO of SkinBioTherapeutics, commented: 

“We are very pleased to have finalized the commercial terms with Croda, which are in line with our long-standing expectations. The deal represents a significant milestone for the Group and reflects our confidence in the future success of SkinBiotix™. With the experience and track record of Croda’s commercial team, including the successful launch of blockbuster products, we are excited about the future prospects for SkinBiotix™. Our revenue expectations, alongside the contributions from our acquisitions, mean we do not anticipate requiring additional working capital funding.”