Deal creates new sales channel and revenue opportunities for OxC-betaTM Livestock with commercial farms and large integrated feed producers
Avivagen Inc. (TSXV:VIV) (“Avivagen”), a life sciences corporation focused on developing and commercializing products for livestock, companion animal and human applications that safely support immune function, promote general health and performance, has entered into a binding distribution agreement with Manila-based INPHILCO, Inc. that will see the company become a new, key distribution partner for OxC-betaTM Livestock in the rapidly growing Philippines market. OxC-beta™ Livestock has the potential to eliminate the use of antibiotics as growth promoters in livestock feed, a problem requiring an urgent solution, and which represents a multi-hundred-million-dollar market opportunity worldwide.
The agreement follows the memorandum of understanding entered into between the companies and announced by Avivagen in December 2019. Under the agreement INPHILCO will be able to purchase OxC-betaTM directly from Avivagen and will hold the exclusive rights to sell the product to large integrated feed producers as an ingredient in its premixes and in its standalone form.
“We’re very excited to formalize what we expect to be a very successful relationship with INPHILCO, bringing OxC-betaTM Livestock to an even greater segment of the Philippine market,” said Kym Anthony, Chief Executive Officer, Avivagen. “INPHILCO brings a well-earned reputation for high-quality products and deep rooted relationships with both large integrated feed producers and commercial farms to the table, which will set the stage for increased OxC-betaTM Livestock use for both swine and poultry in this very important region.”
The Philippines is a fast growing and important feed market, with an estimated annual feed production of 18.2 million metric tons for 2020i. Swine and broiler poultry are the most important commercial livestock species in the country, representing approximately 82% of all feed consumptionii. Avivagen expects continued growth within the Philippines and across the Asia-Pacific market as new applications of OxC-betaTM are being utilized by a growing number of local partners, and as it pursues additional regulatory approvals in new jurisdictions.
Incorporated in 1962, INPHILCO is one of the oldest local Vet companies in the Philippines, covering poultry, swine, aquaculture, pet and feed mill requirements for animal nutrition, animal health and raw materials for compound feeds. In addition to employing sales and technical people covering the entire Philippines, INPHILCO has several warehouses nationwide to provide technical services and to cater to the needs of its customers, and imports and distributes quality products from all over the world such as The Netherlands, USA, India, South America, China, Denmark, among others.
Avivagen is a life sciences corporation focused on developing and commercializing products for livestock, companion animal and human applications. By unlocking an overlooked facet of β-carotene activity, a path has been opened to safely and economically support immune function, thereby promoting general health and performance in animals. Avivagen is a public corporation traded on the TSX Venture Exchange under the symbol VIV and is headquartered in Ottawa, Canada, based in partnership facilities of the National Research Council of Canada and Charlottetown, Prince Edward Island. For more information, visit www.avivagen.com. The contents of the website are expressly not incorporated by reference in this press release.
About OxC-beta™ Technology and OxC-beta™ Livestock
Avivagen’s OxC-beta™ technology is derived from Avivagen discoveries about β-carotene and other carotenoids, compounds that give certain fruits and vegetables their bright colours. Through support of immune function the technology provides a non-antibiotic means of promoting health and growth. OxC-beta™ Livestock is a proprietary product shown to be an effective and economic alternative to the antibiotics commonly added to livestock feeds. OxC-beta™ Livestock is currently available for sale in the United States, Philippines, Taiwan, New Zealand, Thailand, Australia and Malaysia.
Avivagen’s OxC-beta™ Livestock product is safe, effective and could fulfill the global mandate to remove all in-feed antibiotics as growth promoters. Numerous international livestock trials with poultry and swine using OxC-beta™ Livestock have proven that the product performs as well as, and, sometimes, in some aspects, better than in-feed antibiotics.
Forward Looking Statements
This news release includes certain forward-looking statements that are based upon the current expectations of management. Forward-looking statements involve risks and uncertainties associated with the business of Avivagen Inc. and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions “aim”, “anticipate”, “appear”, “believe”, “consider”, “could”, “estimate”, “expect”, “if”, “intend”, “goal”, “hope”, “likely”, “may”, “plan”, “possibly”, “potentially”, “pursue”, “seem”, “should”, “whether”, “will”, “would” and similar expressions. Statements set out in this news release relating to the possibility that INPHILCO will sell OxC-beta Livestock in the Philippines, expected growth of demand and sales of OxC-beta within the Philippines or the Asia-Pacific market in general, the possibility for deployment or launch of OxC-beta™ Livestock in new jurisdictions around the world or for it to replace antibiotics in livestock feeds as well as fill a critical need for health support in certain livestock applications where antibiotics are precluded, Avivagen’s intention to accelerate market access and the commercial uptake of its OxC-beta™ Livestock product and the size of market opportunities are all forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. For instance, neither UNAHCO nor INPHILCO is under any obligation to purchase product from Avivagen or to increase its purchases and could cease or reduce its purchases at any time, inquiries from potential new customers may not result in orders for Avivagen’s products and field trials underway may not have anticipated outcomes, demand for Avivagen’s products in Philippines and the Asia-Pacific market in general may not continue to grow and could decline, Avivagen’s products may not gain market acceptance or regulatory approval in new jurisdictions or for new applications and may not be widely accepted as a replacement for antibiotics in livestock feeds, new market access may not occur in the timeline or manner expected by Avivagen and the market opportunities may not be as large as Avivagen anticipates due to many factors, many of which are outside of Avivagen’s control. Readers are referred to the risk factors associated with the business of Avivagen set out in Avivagen’s most recent management’s discussion and analysis of financial condition available at www.SEDAR.com. Except as required by law, Avivagen assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright © 2020 Avivagen Inc. OxC-beta™ is a trademark of Avivagen Inc.
i 2020 Alltech Global Feed Survey
ii 2020 Alltech Global Feed Survey
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