Incanthera plc
25
March 2024
("Incanthera" the
"Company")
Commercial
Update
Incanthera plc (AQSE:INC),
the company specially focussed on
innovative technologies in dermatology and oncology is
pleased to announce a commercial update on the
launch of Skin + CELL with Marionnaud Switzerland and Austria
("Marionnaud"), managed by the world's
largest health, beauty and lifestyle retailer, A.S. Watson Group
("AS Watson").
In December 2023, Incanthera
announced a commercial skincare deal with
Marionnaud for the launch and distribution of Skin + CELL, Incanthera's luxury skincare brand
range, utilising
our ground-breaking formulation and delivery expertise, to bring
scientifically proven formulations to cosmetics.
Under the terms of the deal, Skin +
CELL will be initially launched in c. 100 of Marionnaud's stores
in Switzerland and Austria, followed by a planned
roll out into the remaining 1,100 European stores, with subsequent
anticipated roll outs into major Asian markets. Marionnaud is
a subsidiary of CK Hutchison which also owns A.S. Watson who
operate over 16,000 retail and online stores globally.
Commercial Update Highlights:
· First order will generate
revenue to Incanthera of c. £2m and has doubled in size from
Marionnaud's initial order for Skin + CELL products, from original
25,000 units* to 50,000 units: *One
unit being one bottle of product i.e. face cream, hand cream
etc.
o Strong demand from customers
anticipated by Marionnaud's
management.
o Enlarged order is being manufactured and on
track for delivery to Marionnaud in
Switzerland and Austria during Q2 2024.
·
Second order
expected to be 250,000 units, increasing further with roll
out:
o Significant increase in expected order to allow for
anticipated high demand and to fulfil European launch and start of
planned Asian roll out in Q1 2025.
o Expected economies of scale from increased manufacturing to
further drive gross margin and net revenue to
Incanthera.
·
Projected revenue
of £10m (and profitability) for full year
·
Extension of Skin
+ CELL product range:
o Incanthera also today announces that the fifth product in the Skin +
CELL skincare range, a
Skin + CELL eye
serum, has been completed, by our
in-house formulators.
o Skin
+ CELL eye serum will be included in addition to
the original four formulations of face, hand, body and face serum
products in the initial launch for Marionnaud.
·
Initiation of
Research Note by Stanford Capital Partners.
o This
will shortly be available on the Incanthera plc website
www.incanthera.com
The launch of Skin + CELL with
Marionnaud is transformational for Incanthera and based on the
market position of Marionnaud is expected to generate revenues to
Incanthera of £10m (and make Incanthera profitable) in the
financial year ("FY") to 31 March 2025, growing to revenues of £33m
(and increased profitability) in the following FY to 31 March 2026
based on discussions with the Marionnaud management team from
expected retail price and order volume.
The company is delighted in the
confidence expressed by Marionnaud for Skin
+ CELL's strong science-based skincare offer in their European
network, and the growing relationship between the
companies.
Incanthera retains the right to
commercial discussions for potential licensing deals with other
organisations in all other global territories outside those in
which Marionnaud and AS Watson will have geographical exclusivity
to Skin +CELL.
Commenting on the commercial update, Chairman, Tim McCarthy
said;
"We are delighted to be able to announce such a positive
commercial update, following on from the announcement in December
of our deal with Marionnaud, anticipating first annual revenues of
£10m, our first profitability and with revenues and profitability
growing significantly over the next few years.
The immediate doubling of our first manufacturing batch is a
fantastic endorsement of our product range and demonstrates the
high confidence and anticipation with which we are preparing for
Skin + CELL's promotional launch on the shelves of Marionnaud's
European stores.
This is enhanced by the earlier than expected launch of our
fifth product, our eye serum, for which I
would like to recognise the expertise of our in-house
formulators.
We
look forward to fulfilling the first order and updating the market
further on the operational roll out across European
stores."
This announcement contains
inside information for the purposes of Article 7 of EU Regulation
596/2014 (which forms part of domestic UK law pursuant to the
European Union (Withdrawal) Act 2018).
For further information please
contact:
Notes to Editors
About Incanthera plc
Incanthera is a specialist company
focused on innovative technologies in dermatology and
oncology. It seeks to identify and develop innovative solutions to
current clinical, commercially relevant unmet needs, utilising new
technology from leading specialists and academic institutions as
well as its in-house development team.
The Company originated from
the Institute of Cancer Therapeutics ("ICT") at
the University of Bradford. Incanthera's strategy
is to develop each candidate in its portfolio from initial
acquisition or discovery to securing its future through
commercially valuable partnerships at the earliest opportunity in
its development pathway.
For more information on the Company
please visit: www.incanthera.com
@incantheraplc
About Skin + CELL
Skin + CELL is Incanthera's luxury
skincare brand utilising our ground-breaking formulation and
delivery expertise, to bring scientifically proven formulations to
cosmetics. Skin + CELL's unique formulations, enriched with
targeted bioactive B3 (an activated form of niacinamide) are
delivered directly into the skin's cells to optimise and protect
cellular health, energy and protective capabilities.
Incanthera's skincare technology
harnesses unique delivery pathways through recently patented
formulations designed by our in-house experts who have previously
formulated skincare for some of the world's leading skincare and
pharmaceutical companies. These formulations fortify otherwise
depleted physiological pathways to improve the skin's performance,
ability to self-repair and to address previously unmet cosmetic
conditions in skin health.
•
Skin + CELL's unique formulations, currently enriched with targeted bioactive B3 (an activated
form of niacinamide) but anticipating further bioactive ingredient
formulations are delivered directly into the skin's cells to
optimise cellular health, energy and protective
capabilities.
•
Independent studies have shown Incanthera's
technology is uniquely effective in delivering Bioactive B3 below
the dermal barrier, energising the living cells of the skin to
maintain natural health and protection against adverse
environmental challenges and maintaining even skin
tones.
•
Skin + CELL's complementary range of products are
based on advanced, clinically designed, formulation concentrates
which combine leading edge pharmaceutical enhancement technology
with selected prestige cosmetic ingredients to give an effective
product which gives a silky emollience in use and leaves the skin
visibly radiant, energised and protected.
Skin + CELL's luxury skincare
current range extends across face, body, hand, face serum and eye
serum, and will also include SPF concentrations and further
bioactive derivatives of vitamins in the future.
About Marionnaud
Marionnaud is the largest luxury
perfumery and cosmetics chain in Europe with over 1,220 stores and
a 27% market share in France. Marionnaud is managed by the AS
Watson Group based in Hong Kong, the world's largest international
health and beauty retailer.
https://www.marionnaud.com
About A.S. Watson
The A.S. Watson Group is the
world's largest international health and beauty retailer, with
16,100 stores in 28 markets, primarily in Asia and Europe. A
member of CK Hutchison Holdings, A.S. Watson operates the world's
largest portfolio of retail formats, retail brands and has the
largest geographical presence including a significant online retail
presence.
http://www.aswatson.com/
https://youtu.be/IZ6TolZi4Go
Forward looking statement
disclaimer
Certain statements made in this
announcement are forward-looking statements. These forward-looking
statements are not historical facts but rather are based on the
Company's current expectations, estimates, and projections about
its industry; its beliefs; and assumptions. Words such as
'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,'
'estimates,' and similar expressions are intended to identify
forward-looking statements. These statements are not guarantees of
future performance and are subject to known and unknown risks,
uncertainties, and other factors, some of which are beyond the
Company's control, are difficult to predict, and could cause actual
results to differ materially from those expressed or forecasted in
the forward-looking statements. The Company cautions shareholders
and prospective shareholder holders not to place undue reliance on
these forward-looking statements, which reflect the view of the
Company only as of the date of this announcement. The
forward-looking statements made in this announcement relate only to
events as of the date on which the statements are made. The Company
will not undertake any obligation to release publicly any revisions
or updates to these forward-looking statements to reflect events,
circumstances, or unanticipated events occurring after the date of
this announcement except as required by law or by any appropriate
regulatory authority.