Incanthera PLC (AQSE:INC), the dermatology and oncology technology company listed on the Aquis Exchange, has signed an exclusive agreement to supply bioactive skincare creams to LED light-therapy device manufacturer iSmart Developments.
The deal marks Incanthera's first contracted recurring sales revenue as it shifts away from a marketing-led, direct-to-consumer business model.
Under the agreement, Incanthera will provide annual minimum quantities of its creams for use alongside iSmart's devices, which are sold under the Omnilux and faceLITE brands.
iSmart manufactures around one million LED skincare devices each year for markets including the United States and Australia, and holds multiple patents covering its technology.
The company's newest device, a five-wavelength mask known as the 5G mask, recently received clearance from the US Food and Drug Administration (FDA).
Incanthera said the global LED skincare market is forecast to grow by more than 10% annually to reach almost £2 billion by 2035.
The agreement follows a consumer trial in which all participants using iSmart's LED mask alongside Incanthera's cream reported improved results compared with a baseline, while 87% said their skin felt smoother and better hydrated.
None of the trial participants preferred using the LED mask without the cream.
Incanthera cautioned that the study was not designed as a fully powered efficacy trial, though it described the results as directionally positive, and said a larger three-arm study is planned.
The two companies are also in discussions to extend the partnership to next-generation wearable LED devices designed for sports and casual clothing.
Stuart Robertson, chief executive of Incanthera, said the partnership brought together the company's formulation expertise with a commercial partner offering global scale.
He added that the business was building commercial momentum and was on track to deliver sustainable growth over the medium term.
Incanthera said it expected to update the market as further details of the supply agreement and any additional collaboration are confirmed.