BioHarvest Sciences Inc. (CSE:BHSC, OTC:CNVCF) announced that it has signed two contracts with industrial customers to develop complex molecules via its newly launched Contract Development and Manufacturing Organization (CDMO) business unit.
The company said this new business unit will allow pharmaceutical, cosmeceutical, nutraceutical and nutrition industry leaders to partner with BioHarvest to utilize its botanical synthesis process technology through a typical CDMO contracting model.
Through its botanical synthesis process, BioHarvest can develop and manufacture patentable plant-based small molecules, complex molecules, and unique compositions which include both small and complex molecules.
Under its new business unit, the company offers its botanical synthesis process technology in three steps, with the first being able to produce a small biomass of the plant-based biologics from the source plant. The customer will pay BioHarvest non-recurring engineering expenses (NRE) between US$150,000 to US$500,000 for this first step.
Step 2 provides for the delivery of an increased amount of biomass to enable clinical trials and other tests, requiring NRE of US$350,000 to US$700,000.
The final step brings the molecules to large-scale production capability and requires NRE between US$1 million and US$1.5 million.
BioHarvest noted that should a customer decide to produce its developed molecule at an industrial scale after Step 3, the company would enter into a royalty-based payment model.
It said its first contract is with a NASDAQ-traded pharmaceutical company which has contracted BioHarvest to develop particular complex molecules which would form the base of their patented drug development.
The second is with a major player in the food and nutrition industry which has contracted BioHarvest to develop plant-based molecules for use in the sweeteners industry.
BioHarvest has decided to take a 50% stake in the molecule ownership rights by contributing 50% of the step 1 development costs on their view this specific sweetener molecule has commercial potential.
“The launch of this new business unit will, for the first time, offer our proprietary botanical synthesis process technology to pharmaceutical companies as well as to other key industry verticals who are actively searching for new complex molecules to drive their innovation and growth agendas,” BioHarvest CEO Ilan Sobel said in a statement.
“These two contracts with established industry players are a major validation of the critical market need for our botanical synthesis process and biologics molecules."
The CEO added that BioHarvest is actively engaging with other potential CDMO customers.
“Early feedback has validated our strategy thesis that industry leaders are aggressively searching for the next high-impact molecules to drive value in their respective businesses, and it has confirmed the strength of the BioHarvest Botanical Synthesis CDMO proposition for that purpose,” he said.
BioHarvest Sciences is a leader in botanical synthesis, leveraging its patented technology process to grow the active ingredients in plants without the need to grow the underlying plant.