• Add to Favourites
  • Print this Page
 
BioFinance Random Picture

Origin BioMed Inc.

Presenter: Robert Cervelli, President & CEO

Company Profile

Origin BioMed Inc., Halifax, Canada, is an innovative biotechnology company currently expanding the markets for its exclusive therapeutic pain relief, skin care and lip care products. During its first five years of operations, Origin has methodically developed three proprietary product lines targeting large markets, and has established a solid sales and marketing infrastructure for North America. These botanical-based products, with regulatory clearance in the US and Canada, are sold under the brands Neuragen®, Polyphenon® and HerpeStat®. The company is poised for rapid growth as it now enters into large distribution and partnership agreements.

Markets & Products

Origin is directly pursuing sales of its own products into the North American marketplace through drug store chain distributors and other market channels, while also licensing its patents to key major players targeting opportunities in the US and Japan. Origin is positioned in the fastest growing segment of the US $150 billion/year worldwide natural health products market. The natural personal care products segment is growing the most rapidly at between 10-20% per year, or US $4.6 billion in the US and US $365 million in Canada1. Origin has entered this market segment with products that have a decided competitive advantage based on their unique quality, supporting laboratory or clinical efficacy data and patent protection. Products target large markets with significant unmet need, such as chronic pain, skin damage and cold sores.

Neuragen® - For topical relief of pain associated with diabetic neuropathy, post-shingles, fibromyalgia and chronic pain caused by nerve damage. Neuragen was registered as an OTC drug by the US FDA in August 2005. An example of the market potential for Neuragen is the sales of Pfizer’s product Neurontin for similar conditions at US $2.7 billion/yr.

Polyphenon® Green Tea Catechin Products

Polyphenon® Skin Cream – For treatment of damaged skin caused by photo-aging & sunburn, as well as wound healing. The product is positioned as a professional therapeutic cream, with further line extensions to follow.

Polyphenon® Acne Cream – Effective treatment for acne vulgaris. The product uses a natural base and the activity of green tea catechins and essential oils.

Can-Tea® - green tea lozenges. These individually-wrapped lozenges are sweetened with maltose and provide the health benefits of green tea ‘on the go.’

HerpeStat® – for treatment and prevention of cold sores and other herpes sores. The product uses extremely effective and patented active botanical ingredients, including one developed at Dalhousie University, Halifax. HerpeStat was registered as an OTC drug by the US FDA in May 2006. The product targets the US $300 million N. American market for cold sores.

SWAT Cream® - A patent-pending, natural insect repellent utilizing topical vitamin B1 as an active.

Sales Growth and Revenue Potential

Utilizing a modest investment of less than $1.3 million to date, Origin is validating its business strategy, and is now approaching the million dollar annual revenue mark. While still early in its market penetration, Origin’s product sales have increased 52% per quarter for the last three quarters, compared to the previous quarter. This sales growth was accomplished on a very modest advertising budget. Origin’s product lines have a collective market potential of at least $300-400 million in its target markets, which are expected to continue growing at 8% annually though 2008. Additionally, contract revenue is received from Mitsui Norin Co., Ltd., Tokyo, for market development of the Polyphenon brand. Through efficient use of its working capital and ability to build early value, Origin BioMed is now positioned for rapid growth.

Origin has placed its own sales force across Canada to address its closest market. Large drug chain distribution channels are being opened in both Canada and the USA, with a central US fulfillment center opened last year. Several patent license agreements are in discussion with major US or Japanese players. A product distribution agreement has been signed into Mexico, with discussions in Europe, the Middle East and the Pacific Rim.

Regulations, Manufacturing and Intellectual Property

Origin develops products specifically adapted for the regulations governing each jurisdiction to assure rapid market entry while protecting its proprietary position. In Canada, the company is selling products under the regulations of Health Canada’s newly created Natural Health Products Directorate (NHPD). In the USA, Origin is selling products either under the DSHEA structure-function framework, as topical cosmetics or as over-the-counter (OTC) medications. The company operates in a GMP manufacturing environment to facilitate the regulatory process. Origin will obtain additional manufacturing partners to add sufficient capacity to address its market potential. The company holds the rights to 14 patents or pending patents, and 8 trade marks.

Success Team

Origin BioMed has successfully attracted a strong Board and management team. The company’s Board of four Directors include Dr. Murray McLaughlin, the previous Executive Director of Foragen Inc. investment fund, and Mr. Tom Marks, a highly recognized US pharmacist. Current staff consists of 8 full time and 6 part time positions at the company’s head office, with 8 part-time sales representatives in Canada and the US. The company’s international business, regulatory and technical advisors provide additional capability of sustaining the company’s future growth potential. These include Mitsui Norin Co., Ltd., Tokyo, the world leader in the medical benefits of green tea catechins, as well as GenoSphere LLC, a leading US formulary development company.

Business Potential

Origin will execute its business plan on a private-company basis, and will fully access all market channels in the US and Canada. The company will methodically build its product revenue to multi¬million dollar levels within the next few years. Additional intellectual property and exclusive agreement rights will also build the value of shareholder’s equity, including internal research leading towards pharmaceutical drug candidates. Origin will partner with the biotechnology and pharmaceutical industry to commercialize these opportunities. As the company grows, Origin will explore the potential for entering the public market. The potential also exists for Origin to be acquired by a larger company at an attractive price.

________
1NPICenter, April 2, 2004, D.C. Duber-Smith

Presenter Biography

Mr. Robert Cervelli, President & CEO, Origin BioMed Inc., Halifax

Mr. Cervelli holds a B.Sc. degree from Purdue University and a M.Sc. (Botany) from the University of Wisconsin. Robert has been actively involved in the life sciences sector in Nova Scotia for over 20 years. Robert has held leading roles in several US and Nova Scotian agricultural biotech companies. He has held senior management positions for biotechnology companies developing diagnostics, cancer therapy and vaccine enhancement technologies. Mr. Cervelli has also been the Associate Director for Life Sciences of NU-TECH, Dalhousie University’s technology commercialization office, for over three years; providing valuable experience in patenting, marketing and licensing. He continues to consult for several leading private and public life science initiatives. Mr. Cervelli is focused on the growth of Origin BioMed Inc., which provides innovative and patented OTC drug products to international markets.

Contact

Mr. Robert Cervelli, President & CEO
Origin BioMed Inc.
5162 Duke St., Suite 500
Halifax, NS B3J 1N7
tel: 902-423-5745
fax: 902-492-0013
cervelli@originbiomed.com
www.originbiomed.com