AbbVie Inks Licensing Agreement To Use Sirona Biochem's New Skincare Technology
June 13, 2022
• AbbVie is licensing Sirona's library of skincare compounds, including TFC-1067
• Sirona Biochem's TFC-1067 has been clinically proven to be better than the current 'gold standard' for skin lightening
• Sirona will supply AbbVie with compounds for its commercial products
AbbVie (NYSE: ABBV), through its subsidiary Allergan Aesthetics, has signed a global licensing agreement with Sirona Biochem (TSX-V: SBM) (FSE: ZSB) (OTC: SRBCF) for the rights to develop and commercialize its library of unique skincare compounds. The Botox injections maker agreed to pay Sirona Biochem upfront and milestone payment on top of annual royalty payments for sales generated by treatments and products using its ingredients.
AbbVie already commands a significant presence in the aesthetics and cosmetics market through its subsidiary Allergan Aesthetics. Last year, the company generated $56.1 billion in revenue. The company has more than 48,000 employees globally.
Sirona Biochem's chief executive officer, Howard Verrico, said the licensing agreement validates the company's hard work in developing its technology and its disruptive new compounds. He added that its latest human trials showed how TFC-1067 could revolutionize the industry and become the new gold standard in the treatment of skin conditions such as melasma, hyperpigmentation, and dark spots. Verrico said he believes TFC-1067 could replace hydroquinone and become the main ingredient for next-generation skincare products and treatments.
While the companies did not disclose the exact figures involved in the deal, analysts estimate that AbbVie could corner a large portion of the $8 billion global skin-lightening market. This may translate to substantial royalty payments for Sirona Biochem through the life of its patents.
Pullman Consulting, which facilitated the transaction, said both parties would benefit from the significant opportunities resulting from the deal. The consultancy firm said AbbVie's massive presence in the space and its global reach, combined with Sirona's disruptive technology, will be a boon to the industry and all stakeholders involved.
Sirona Biochem conducts research and development of new compounds and drugs using its proprietary carbohydrate bonding technology. The company is currently working on other advanced compounds that can be used in applications such as anti-aging, anti-wrinkles, cellulite treatment, cell repair, and cell preservation. It is also working on other novel treatments, such as an anti-diabetes drug for animals and a new anti-viral treatment for humans.
Sirona Biochem licenses its patented compounds to major pharmaceutical companies around the world in exchange for upfront payments, licensing fees, and ongoing royalties. The company's wholly-owned subsidiary, TFChem, has received several scientific awards and government grants for its work in the biotech field.