Bioprospect
BioProspect Limited operates in the biotechnology industry focusing on natural plant extracts for use within the insecticide, termiticide and human health markets.
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BioProspect completes Re-Gen acquisition, targets Chinese healthcare market
BioProspect has completed the acquisition of Re-Gen Wellness Products Pty Ltd. Re-Gen is a specialist provider of skin care and human health products based on natural Australian ingredients, including emu oil. BioProspect will now focus expansion into natural healthcare and skin care products in the fast growing Chinese market.
BioProspect CEO Peter May said the agreement was structured to ensure maximum benefit for shareholders, and followed three months of due diligence, including market research and development activities in China. Re-Gen is to continue operations as a wholly owned subsidiary, with all intellectual property in Australia and overseas acquired by BioProspect.
May said, "Re-Gen has already secured a number of product approvals from the Chinese Ministry of Health, and we are targeting sales for Christmas and the Chinese New Year period."
The Re-Gen product range provides BioProspect with the benefit of diversification across a range of markets, while also enhancing cash flow and growth opportunities in both domestic and overseas markets.
"The growth of the Chinese skin and healthcare market is significant, and due to consumer acceptance of natural products we anticipate strong demand for Re-Gen's natural-based remedies based on the therapeutic value of emu oil."
"BioProspect has established relationships with Re-Gen's network of key collaborators and contractors in Australia and China, and also secured ownership of key intellectual property, including formulation and manufacturing data. Logistics, packaging and promotional support is in place, and I am looking forward to progressing discussions with distributors, as well as expanding the range of products approved for use in the expanding Chinese market."
Cosmetics represents China's fifth-largest consumer market after real estate, automotives, telecommunications, education and tourism, and is forecast to reach annual sales of A$20 billion by 2010, including skin care products.
The Chinese healthcare market was valued at A$6.5 billion in 2005 for traditional medicines alone, and is expected to exceed A$11 billion by 2015, according to independent research.
"Re-Gen has already established distribution channels along with product approvals, giving BioProspect a head start in securing near-term cash flow from the business."
BioProspect is rapidly commercialising its range of natural, low toxicity products across the human and animal health markets, including natural termite solution TERMILONE® and the Bioeffectives® range of animal health and nutrition products.
