Applecross-listed and Victoria-based Xceed Biotechnology Ltd's subsidiary PolyNovo Biomaterials Pty Ltd has formed a joint venture with the Principals of the Australian Plastic Surgery Associates to develop a range of dermal filler and cosmetic surgery pr
Applecross-listed and Victoria-based Xceed Biotechnology Ltd's subsidiary PolyNovo Biomaterials Pty Ltd has formed a joint venture with the Principals of the Australian Plastic Surgery Associates to develop a range of dermal filler and cosmetic surgery products.
XZceed announced it would demerge the subsidiary through an initial public offer last week.
The full text of a company announcement is pasted below
Xceed Biotechnology Limited ('Xceed') is pleased to advise that its 64% owned subsidiary company, PolyNovo Biomaterials Pty Ltd ('PolyNovo') has today signed a joint venture agreement (to be called NovoCosmetica) with the Principals of the Australian Plastic Surgery Associates (APSA). The focus of the venture will be to develop a range of innovative dermal filler and cosmetic surgery products (to be called NovoFill) using PolyNovo's unique biodegradable polymer technology (NovoSorbTM).
The Joint Venture Model
Similar in concept to PolyNovo's joint venture with Dr John Greenwood at Royal Adelaide Hospital (NovoSkin), the aim is to work closely with APSA to progress a range of dermal filler products through pre-clinical and clinical development to the point of regulatory approval. Once that milestone has been achieved, substantial value will have been added enabling partnering with an international dermal filler company for product marketing and distribution to be considered.
About APSA
The Principals of APSA are key opinion leaders in the Australasian cosmetic surgery industry. Drs Tim Edwards and Tony Moore have established plastic surgery centers throughout Australia, Asia and the Middle East. In the 1990's they successfully introduced to Australia an existing polylactic dermal filler now known as Sculptra™. They eventually sold their rights in the product to sanofi-aventis, Inc.
Application of NovoSorbTM
Since the sale of their rights to Sculptra™ APSA have been seeking to identify a superior compound capable of being developed into a range of longer lasting and semi-permanent dermal filler products. APSA elected to form the joint venture with PolyNovo after assessing the attributes and properties of NovoSorbTM. Dr Tim Edwards commented "The PolyNovo polymers are safe, cost effective and easy to use. In addition their degradation time or product life can be pre-determined to suit the products we design. As a result we are convinced that NovoSorbTM is ideally suited to our identified dermal filler applications."
The Dermal Filler Market
Dermal fillers are a range of products designed to be injected into the dermal and subdermal layers of the skin to correct contour deficiencies in the body's structures. According to the American Society for Dermatologic Surgery (2006), the market breakdown by application area is 86% wrinkles, 5% lips, 5% Lipotrophy (increasing the body's fat stores), 3% scars and 1% other. According to Medical Insights, Inc. (2006) the world dermal filler market is projected to grow at a rate exceeding 20% per annum and is predicted to reach US$1.5 billion by 2011.
Partner Contributions Under the joint venture, PolyNovo will fund a feasibility study, supply product development services and assist with pre-clinical studies and regulatory filings and will have 80 % equity in NovoCosmetica. APSA will supply expertise in the product development and pre-clinical phases and be responsible for the first clinical trials and registration of products and will receive 20 % equity stake.
CEO View
In commenting on the key strategic reasons for the formation of the joint venture with APSA, PolyNovo's CEO, Dr Ian Griffiths, said "Drs Edwards and Moore have proven experience in taking a dermal filler product through the regulatory approval process in Australia. We are united in the view that NovoSorbTM has significant potential for application in the dermal filler markets. The main factors contributing to this are:
- Numerous high value product opportunities exist;
- Short timeframes to marketing approval;
- Likely superior patient outcomes;
- Patient payment removes the issue of reimbursement; and
- Product liability can be managed through patient consent.
We look forward to the rapid progression of this high potential project with APSA."
