Oxford Nutrascience Group PLC (LON:ONG) reported its maiden interims since its successful flotation on AIM in February, showing a strong rise in revenues and good progress in getting its products to market.
Oxford Nutrascience is a UK consumer healthcare company that develops chewy confectionery, chewable tablets and liquid suspensions to allow medicines and vitamin supplements to be taken in a more pleasant and convenient way.
It has developed technology for the use of soluble fibres in medicine delivery systems that disperse and solubilise medicines, improve taste and mouth feel, simplify processing and eliminate additives, incorporating prebiotic health benefits. The Chewitabs and liquid suspension delivery systems are over-the-counter pain relieving drugs, indigestion preparations and cough and cold medicines.
Revenue in the six months to June 30 2010 rose to £81,000 from £29,000, reflecting higher export sales of the Ellactiva calcium chews brand. The pretax loss widened to £488,000 from £111,000 in the previous first half, reflecting the expansion of the company and including an increase in business development costs for the commercialisation of its products, research and development and strengthening and securing intellectual property.
Cash balances at 30 June 2010 amounted to £1.257 million and continue to be managed prudently by keeping a minimal management structure, Oxford Nutrascience said.
Chief executive Nigel Theobald said: "Our chewable and soluble products have already attracted the attention of international healthcare organisations and the commercial agreement signed with DCC Health & Beauty Solutions Ltd., the leading provider of outsourced services to the health and beauty markets, validates our business model and proves the attractiveness of our technology. Discussions with a number of other healthcare companies about licensing our technology or distributing our products are ongoing."
Theobald referred to a deal announced earlier this week that the group is licensing out its Chewitab technology to DCC Health & Beauty Solutions. The agreement is open ended and non-exclusive, and Oxford Nutrascience will earn royalties on any DCC product sold in chewable tablet form, including healthcare supplements.
Chewitab is its proprietary technology used in chewable tablets. The product produces a light crunch when bitten and dissolves quickly in the mouth resulting in a soft pleasant feeling with no grittiness and can be taken without water.
In today’s statement, the group said it made good progress in the first half, with particular focus towards building the soft confectionery chew business, advancing development of the new chewable tablet and liquid suspension delivery technologies, and putting in place the foundations to ensure the successful delivery of the business model.
In the UK, the Ellactiva calcium chew trades satisfactorily in Boots, and during the first half was introduced into Saudi Arabia, Lebanon, UAE, and Poland. In addition a distribution agreement was signed with Rowlands Pharmacy in the UK.
As announced in May the company also advanced the readiness of two new soft chew products, Ellactiva Cranberry chews, a food supplement aimed at women addressing urinary tract infections, and Chewyz, a healthy sweet aimed at children.
The development of these products is being finalised and will be presented to the trade during September 2010.
Oxford Nutrascience continued to strengthen its technology base and filed two international patent applications in the first half covering its chewable tablet delivery system as well its liquid suspension system.
Both applications are expected to be published in October 2010. Separately, the examination of its patent application for soft confectionery delivery systems has progressed well and it expects the patent will be granted, initially in the UK, during the second half of the current financial year.
Chairman Marcelo Bravo commented: “We continue to work on the development of new products and bringing new applications for our technology forward. The board is confident that the progress made during the first half of 2010 will continue, leading to commercial agreements for our new soft chew supplements and Chewitab tablet technologies.”