Dr. Howard Verrico reports
SIRONA BIOCHEM CEO S REPORT ON PROGRESS
Sirona Biochem Corp. has provided a shareholder corporate update from Dr. Howard Verrico, chief executive officer of the company.
As the summer comes to a close and we enter the final months of 2018, I am eager to share the progress of Sirona's recent clinical development and partnering activities. We sincerely apologize for the lack of communication recently, as we have been quite busy internally pivoting our strategy. However, we are now in a position to provide a comprehensive update. Sirona's current strategy is based on a three-pronged attack, which I will explain in detail herein, to ensure success in maximizing the value of our skin lightener, TFC-1067.
Clinical trial development
As mentioned in our most recent news release, Sirona and its subsidiary laboratory, TFChem, are nearing completion of the necessary requirements in developing TFC-1067 for a proof-of-concept human clinical trial. Through work with a toxicologist and extensive safety studies, a formulation of Sirona's lead skin lightener has been prepared. The proof-of-concept clinical trial will begin in late October at a U.S.-based clinic. The trial, performed by a lead dermatologist who has worked with many of the top-tier pharmaceutical and biotechnology companies worldwide, will take approximately 12 weeks.
North America strategy
Many Sirona shareholders were aware of the late-stage negotiations taking place with a large North American company to license TFC-1067. Even though term sheets had been exchanged, a sudden change in focus by the potential partner company, alongside a large internal reorganization, has delayed talks. While interest does remain, we made the decision months ago to expand the search for new potential partners in North America. Of the several interested cosmetic companies, one company specifically has invested significant time and resources to evaluate TFC-1067. Accordingly, we are pleased with the progress to date and foresee licensing discussions advancing.
Moreover, with the clinical trial beginning soon, many lead cosmetic companies we have previously spoken to are anticipating the results and will be eager to continue moving forward at that point.
While we continue to anticipate a North American licensing deal, Asia accounts for approximately 90 per cent of the global market for skin lightening and continues to grow rapidly. Many North American companies have difficulty penetrating the Asian markets, resulting in lack of sales channels. We believe that working with leading cosmetic companies within Asia, where a majority of sales occur, is critical to entering this market. Previously, Sirona has attempted to navigate the Asian cosmetic market, but the different business practices and relevant contacts necessary proved to be obstacles. However, Sirona's strategic adviser based out of Hong Kong, PRC Partners Ltd. (PRC), with extensive presence and experience in Asia, has helped Sirona over the last five months, specifically in China.
PRC has set up several meetings with major cosmetic companies in China. Dr. Geraldine Deliencourt-Godefroy, chief scientific officer, and I have made several trips to China, and we are working on several deal options -- either working with one major brand to develop TFC-1067, or licensing it to many players in the market through a material supplier, which would make TFC-1067 an OEM (original equipment manufacturer) product. We are in discussions with companies regarding options.
Although the focus of these meetings has been on TFC-1067, several of the larger companies are also expressing interest in Sirona's anti-aging compound, LIP-01. This further confirms the large cosmetic demand by the Asian market for novel products.
Ultimately, we believe that focusing on not only the North American market, but also Asia, as well as independently developing TFC-1067 through a proof-of-concept clinical trial, will allow Sirona to secure the most value from TFC-1067 on a global scale.
Thank you for your continued patience and support. We hope that this update on Sirona's strategy makes you as confident as we are in regard to licensing TFC-1067. Most importantly, Sirona plans to continue improving communication and transparency moving forward.
Dr. Howard Verrico,
chief executive officer
About Sirona Biochem Corp.
Sirona Biochem is a cosmetic ingredient and drug discovery company with a proprietary platform technology. Sirona Biochem specializes in stabilizing carbohydrate molecules with the goal of improving efficacy and safety.
Sirona Biochem's compounds are licensed to leading companies around the world in return for licensing fees, milestone fees and continuing royalty payments.
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