BSF Enterprise PLC (LSE:BSFA, OTC:BSFAF) has signed heads of terms for the worldwide exclusive commercialisation of its proprietary ETSYL® bioactive peptide across the cosmetics, skincare, dermocosmetics and luxury beauty markets.
The agreement with Germany-based SCHAKAU Managementberatung GmbH grants the partner exclusive global commercialisation, distribution and licensing rights for an initial 10-year term, subject to annual volume targets following a 12-month ramp-up period.
Capital-light commercial model
SCHAKAU has allocated an estimated €300,000 market development budget covering clinical claim substantiation, regulatory compliance, brand creation and international distribution.
BSF will retain 100% ownership of the patents, trade secrets, manufacturing know-how and underlying ETSYL technology, while its wholly owned subsidiary 3D Bio-tissues Ltd will supply the active ingredient under a volume-based schedule.
Initial raw material revenues are expected during the 12-month product development phase ahead of retail launch.
Net income from third-party licensing will be split 50:50 after specified compliance and patent-related costs.
ETSYL targets high-end skincare market
ETSYL, also known as palmitoyl pentapeptide-87, was originally developed through BSF’s tissue engineering research to stimulate collagen production and extracellular matrix formation.
The company identified the peptide as a potential high-margin spin-off for the premium skincare market, allowing it to generate additional revenue from its biotechnology platform without diverting capital from its core tissue engineering and leather activities.
SCHAKAU plans to use ETSYL as the active ingredient in its 'HANDS OF GOD' luxury skincare brand while also pursuing wider business-to-business licensing opportunities.
