Alltracel has reported a watershed financial year 2006 in which it generated profit for the first time, putting it in a strong position for introduction of cardiovascular (CV) and cosmeceutical products later this year.
The Irish biotech reported operating profit of €315,000 for the year ended December 31 2006, compared to an operating loss of €1.7m in 2005. EBITDA was €1.2m, versus EBITDA loss of €1.1m in 2005. Revenues to date have spun from the company's oral care and wound care technologies; in the last year it saw its first license revenue from its patented Nanofibre technology, through its new subsidiary, Nanopeutics. But significant progress - both commercial and technological - has been made towards market entry in cardiovascular health and cosmeceuticals on the back of its proprietary PAGA (polyanhydroglucuronic acid) science. Revenues from both of these areas are expected to start coming in in the current year. Alltracel has been on discussions over the use of its cellulose fibre-derived bioactive for cardiovascular health for some time, and in the past year has initiated discussions over commercialisation. Trials combining the bioactive with plant sterols and statins yielded positive results (the results of a third combination trial with omega-3 have yet to be announced). Moreover, the company experienced a breakthrough in making the bioactive soluble - something of a holy grail for entry into the functional products market since it enables the ingredient to be used in popular beverage formats. "Subsequent commercialisation negotiations are now in the final stages with one of the sterol combination trial partners, a North American based CV disease specialist, for the establishment of a technology and business development alliance to enter the global nutrition market with a range of patented CV health functional food and bio-active technologies," said CEO Tony Richardson. "We are excited by the potential here, and expect to see Alltracel's first revenue flows in the CV health market in late 2007." Alltracel's m.doc technology, already commercialised in the woundcare field thanks to its anti-microbial and healing properties, is the springboard for its entry into cosmeceuticals.
Richardson described cosmeceuticals as a "growing and profitable" marketplace, and said that ongoing development of the technology has produced "a major new market opportunity". Negotiations with a global personal care specialist over an exclusive global technology and business development alliance are said to have reached final stages; the deal, for dermal health technology brand, called Phytopeutics, is expected to be formalised during the present quarter. According to a recent report from Business Insights, the total Europe and US market for heart health food and drinks was US$5.4bn (€4.1bn) in 2005, with a 2010 prediction of $7.4bn ($5.6bn).
The comparable figures for heart health pharmaceuticals are $84bn (€64.8bn) and $105bn (€80.8bn) respectively.