- Exclusive owner of patent-protected BioFarming technology
- Grows plant cells at industrial scale in liquid bioreactors to produce the secondary metabolites
- Flagship first product is VINIA, which is based on red grapes
What BioHarvest Sciences does:
BioHarvest Sciences Inc (CSE:BHSC) is the developer and exclusive owner of the proprietary and patent-protected BioFarming technology.
It is the first and only industrial-scale plant cell technology capable of producing active plant ingredients without the necessity to grow the plant itself.
After years of research and development, BioHarvest became the first and only company that grows cells of plants at industrial scale in liquid bioreactors to produce the secondary metabolites.
The company’s first product, VINIA is based on the skin of red grapes and contains a rich complex of polyphenols to bring significant cardiovascular benefits.
VINIA is the first and only product in the world containing Piceid Resveratrol from red grapes at levels in each 400mg capsule that's equivalent to an average bottle of red wine, providing the benefits of red wine with the advantage of zero calories, zero sugar, and no alcohol. VINIA supports heart health and boosts physical energy and mental alertness through "increased blood flow and delivery of oxygen to the body's tissues and organs.”
The company says VINIA is the only dietary supplement available in the US market which has the capability for both reducing the endothelin 1 (ET1) enzyme as well as increasing the nitric oxide (NO) molecules to increase the dilation of arteries and thereby improve blood flow.
BioHarvest started to generate revenue from sales of VINIA in Israel. Today, sales in Israel are growing year-over-year as the company expands its production capacity.
The Vancouver-based company has also announced progress towards applying its BioFarming technology to cannabis, aiming at producing cannabinoids without the need to grow the plant itself. It also plans to commercialize olive oil (high antioxidant activity without the fat) and pomegranate-based products (without the sugars).
How is it doing:
In May 2021, Bioharvest achieved a major milestone with the US launch of VINIA via the vinia.com website, calling it a “turning point” to bring its flagship product to the world’s largest market for nutraceutical supplements, estimated at around $53 billion.
Meanwhile, in Israel sales of VINIA are soaring to all-time highs following the fourth quarter 2020 launch of its new direct-to-consumer e-commerce program.
For its second quarter ended June 30, 2021, the company reported that sales orders in Israel reached US$409,272, compared to US$371,944 in the 1Q of 2021 and US$44,600 in the 2Q of 2020. These results represent a 10% month-over-month increase and an 840% year-over-year jump, respectively.
BioHarvest’s performance in the Israeli market, with a relatively small population of 9 million, is in line with its plans to achieve or exceed the higher end of the US$1.4 million to US$1.5 million guidance range revised in March for projected 2021 sales orders. Also, the company is expanding its manufacturing capacity to a new 20 tons-a-year facility which will be completed in the later part of 2021.
In the 2Q, the company also said its customer count grew by 5% month-over-month, and the average sale per customer reached US$182, another 5% month-over-month increase.
BioHarvest also noted that its direct-to-consumer launch in the US “is off to a very encouraging start.”
After the first six weeks in the US, the company in July said it is still early to provide sales order guidance, but key metrics such as advertising click-through rates, purchase conversion rates, average dollar sales, percentage of revenue in recurring subscription packages, and churn rates are already performing "at very promising levels" for a new brand launch.
The company also recently hired an Israeli financial advisory firm with life sciences expertise and global capabilities, granting it a mandate to explore opportunities for the application of VINIA as an adjuvant therapy in the treatment of Type 2 diabetes patients.
As for its cannabis development program using the BioHarvest technology, the company in June announced it has been able to grow cannabis trichomes in liquid media without growing the cannabis plant itself. The trichome is the micro-factory that produces cannabinoids, flavonoids, and terpenes.
In June, the company said it had achieved several other critical milestones, including developing the required baseline scientific measurement methods to be able to evaluate the level of cannabinoids in its unique composition of cells with trichomes given that no known industry standard exists.
In addition, the company in July announced that its first cannabis cell reservoir has now been continuously producing cannabis trichomes for two full calendar years. BioHarvest's cannabis cells also can remain in the flowering stage continuously. The company expects to commercialize its first cannabis-based products in the first half of 2022.
In addition to its VINIA and cannabis operations, in March Bioharvest announced an advancement in its olive oil-based nutraceutical product scheduled for market availability in the second half of 2022.
The product is a unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the product will provide all the benefits of olives and olive oil with a low-calorie count per serving.
BioHarvest has also entered into a partnership with two consultancy firms to develop its global sustainability strategy and ESG (environmental, social, and governance) reporting framework. Both firms have deep experience working with purpose-driven companies in building long-term societal impact coupled with business value.
On the financial front, the company recently raised more than $6.1 million via a private placement and its stock has started trading on the Frankfurt Stock Exchange.
Inflection points:
- Plans to commercialize first cannabis-based products in 1H 2022
- Expects completion of new 20 ton-a-year facility in 3Q 2021
- Anticipates olive-based nutraceutical product for market availability in 2H 2022
What the boss says:
"As a biotech innovator, our goal is to bring the benefits of our BioFarming platform technology to multiple verticals and geographies,” said CEO Ilan Sobel in a statement accompanying the company's 2Q sales figures.
“The acceptance of VINIA, as manifested in the stellar quarter sales orders in Israel and the encouraging performance metrics in the US, are important indicators of the prospects of the Company in general and, specifically, of the broad applicability of the Company's BioFarming technology platform. I am excited about the prospects of Bioharvest, given the opportunities stemming from our pipeline of BioFarming based nutraceutical and Cannabis products. I look forward to another record quarter for Q3."
Contact the author: patrick@proactiveinvestors.com
Follow him on Twitter @PatrickMGraham