TFS up on US acne product launch
Shares in TFS Corporation rose after it announced the debut of its sandalwood oil acne product in the US.
The product, marketed as Benzac Acne Solutions, contains TFS' pharmaceutical-grade East Indian sandalwood oil.
Benzac was developed in a joint venture with Santalis and is marketed by Nestle-owned dermatology company Galderma.
Galderma is selling Benzac through Target, Walgreens, Rite Aid Pharmacy, amazon.com, drugstore.com, soap.com and benzac.com.
TFS is the world's only supplier of pharmaceutical-grade sandalwood oil and supplies it to Galderma for $US4500/kg ($4820/kg).
There are 40-50 million acne sufferers in the United States, providing a potential $US4 billion market.
TFS chief executive Frank Wilson said if Benzac could tap just a portion of that market, then today's launch would be a significant milestone for TFS and Santalis.
He said Galderma had an extensive product portfolio available in 80 countries and the licence agreement contemplated worldwide commercialisation of certain Santalis' current and future over-the-counter products.
"TFS and Santalis are working on a pipeline of additional dermatological products based on the scientifically-validated pharmacological properties of East Indian sandalwood oil, so that we can create additional demand for our pharmaceutical-grade oil," Mr Wilson said.
"The launch of Benzac with East Indian Sandalwood Oil is an important first step in realising a number of significant global opportunities in the pharmaceutical industry."
Mr Wilson praised the work of Santalis in realising the pharmaceutical potential of East Indian sandalwood oil and for introducing and working with Galderma to turn that potential into a marketable product.
"The ability to produce pharmaceutical grade East Indian sandalwood oil in commercial quantities is limited with high barriers to entry," he said.
"With access to plantation-grown oil through its own plantations and an exclusive relationship with one of the global powerhouses in dermatological treatments, TFS is ideally positioned to capitalise on that competitive advantage."
TFS shares were up half a cent to $1.63 at 9.05am.