BioHarvest Sciences Inc. (CSE:BHSC, NASDAQ:BHST) CEO Ilan Sobel has reflected on 2024 as “a year of transformation and growth” for the company.
In a letter to shareholders, Sobel highlighted the launch of the company’s Contract Development and Manufacturing Organization (CDMO) Services division as “the most transformational change in 2024” for BioHarvest.
“We now have the ability to partner with industry decision makers by giving them the opportunity to access our Botanical Synthesis technology platform to unlock new solutions for the most significant problems they're facing today,” he wrote.
“This is a significant addition to our business as it allows us to develop unique molecules for major players in pharmaceuticals, nutraceuticals, cosmetics and nutrition/sweetener industries, which up until today have not been able to be commercialized with other technologies, and that with our Botanical Synthesis Technology, we can produce consistently and economically at large scale.”
Sobel noted that while the company has a robust near-term pipeline, its business is anchored by its recently announced partnership with Tate & Lyle.
“Our partnership with an industry leader such as Tate & Lyle sends a clear message about the maturity of our Botanical Synthesis technology platform and opportunity it presents to the broader industry,” he wrote.
BioHarvest’s Direct-to-Consumer (D2C) Products division also saw considerable growth in 2024, particularly with the VINIA brand.
The company expanded its customer base with new product offerings, including VINIA Functional Superfood Coffee and a VINIA tea line, alongside plans to launch VINIA coffee pods and super-chews in 2025. As of December 2024, VINIA coffee sales reached $1.6 million, Sobel highlighted.
The CEO also highlighted several strategic investments, including the acquisition of a new 80,000 square foot campus in Yavneh, Israel, to support CDMO R&D and expand production capacity.
Additionally, BioHarvest invested in digitizing its production process, which has improved gross margins significantly, from 44% in Q3 2023 to 56% in Q3 2024. The company projects margins to reach 60% plus in 2025.
Another key milestone was uplisting to the Nasdaq, which is expected to enhance its visibility and liquidity, attracting a broader base of US investors.
“Looking ahead, the need for life-changing molecules made possible by our proprietary Botanical Synthesis process will only accelerate,” Sobel concluded.
“With our new Yavneh corporate campus being established, a burgeoning CDMO services division and ongoing investments in growing our capabilities, we have put the foundation in place to enable continued operational execution in the years to come.”
The full shareholder letter can be found here.