Dr. Howard Verrico reports

SIRONA BIOCHEM REACHES MAJOR MILESTONE BY SUCCESSFUL SCALE-UP OF SKIN LIGHTENING COMPOUND SBM-TFC-1067

Sirona Biochem Corp. has completed the successful scale-up of its skin-lightening compound SBM-TFC-1067. Sirona Biochem commissioned its contract research organization Roowin for the scale-up of one kilogram of 1067 compound. The successful scale-up represents a major scientific breakthrough by Sirona's laboratory in Rouen, France. A quantity of 200 grams of 1067 was delivered last week for formulation and solubility testing by a major multinational corporation under a previously signed material transfer agreement.

One of the major differentiators between 1067 and Sirona's earlier-generation skin-lightening compounds is that the chemical process of applying Sirona's proprietary fluorination technology now requires only three steps to yield a final product. This results in a highly favourable cost of goods and, more importantly, a product with very profitable commercial viability. A preliminary estimation of COG for the active ingredient yielded 10 cents per 100-millilitre final formulation at a final concentration of 0.1 per cent.

Dr. Howard Verrico, chief executive officer of Sirona Biochem, stated: "Formulation testing on this quantity of compound represents a major milestone in the development of 1067, which will ultimately result in a successful licensing deal with one of the top cosmetic companies in the world." He further stated, "This is the first time in Sirona's history that we have advanced a cosmetic compound to formulation testing."

Attila Hajdu, chief business development officer at Sirona Biochem, said: "Potential partners have replicated in vitro tests that we have done in the past to double-check our efficacy and safety data, and whatever else meets their needs to justify further collaboration. The request for formulation testing was a pleasant surprise for us because we originally anticipated that formulation work would occur after a licensing deal. This is a very exciting development."

We seek Safe Harbor.