BioRestorative Therapies (NASDAQ:BRTX) Announces Commercial Agreement With Cartessa, Further Expanding Into $75.46 Billion Aesthetics Market
BioRestorative Therapies (NASDAQ:BRTX) has entered into a five-year exclusive supply agreement with Cartessa Aesthetics to provide cell-based biologics, targeting the growing aesthetics market. The global aesthetics market, valued at $75.46 billion in 2023, is expected to reach $232.49 billion by 2032. BioRestorative's product, Chronos ExoCR, aims to reduce fine lines and wrinkles, leveraging the company's cell biology expertise and proprietary manufacturing processes. The agreement is expected to generate meaningful revenues and reduce reliance on capital markets. BioRestorative also aims for FDA approval of its bio-cosmeceuticals.
- BioRestorative Therapies has signed a five-year exclusive supply agreement with Cartessa Aesthetics.
- The aesthetics market is projected to grow from $75.46 billion in 2023 to $232.49 billion by 2032, representing a CAGR of 13.34%.
- BioRestorative's product, Chronos ExoCR, targets the high-demand cosmetics market, focusing on reducing fine lines and wrinkles.
- BioRestorative is leveraging its core competencies in stem cell biology and cGMP manufacturing.
- The agreement is anticipated to provide significant revenue, reducing the company's reliance on capital markets.
- BioRestorative ended 2023 with $11.1 million in cash, supplemented by $7.6 million from a recent warrant exchange private placement.
- The company is well-positioned with a cash runway extending into 2025.
- BioRestorative is competing in a highly competitive market with players like AbbVie, Cynosure, and Sisram Medical.
- There is a risk the company may not achieve FDA approval for its bio-cosmeceuticals.
- The agreement mandates a predetermined minimum quantity of product supply, which could place pressure on production capabilities.
- BioRestorative's revenue is currently speculative and dependent on the success of the Chronos ExoCR product.
Insights
The commercial agreement between BioRestorative Therapies and Cartessa Aesthetics signifies a potentially lucrative expansion into the burgeoning aesthetics market. With the aesthetics market projected to grow at a 13.34% CAGR to reach nearly
BioRestorative’s strong cash position (ending 2023 with
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The collaboration taps into BioRestorative's strength in cell-based biologics, leveraging Cartessa’s market reach in aesthetics. The use of a cell-based secretome with exosomes, proteins and growth factors represents cutting-edge advancements in non-invasive cosmetic treatments. If successful, this could position BioRestorative at the forefront of a high-growth segment within medical aesthetics.
Notably, this product aligns with the growing consumer preference for non-invasive, scientifically-backed solutions for cosmetic enhancements. However, the path to FDA approval, while promising, is fraught with uncertainties typical of biotechnological innovations. Investors should consider the regulatory risks and the potential timelines for product commercialization.
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The partnership with Cartessa Aesthetics aligns well with market trends. The aesthetics industry is not only large but rapidly expanding. The demographic shift towards aging populations and increased disposable incomes are key drivers. Cartessa's established market footprint and BioRestorative's innovative product pipeline create a synergistic opportunity to capture significant market share.
It's also important to consider the competition. With players like AbbVie and Cynosure also eyeing this market, BioRestorative's ability to differentiate through innovation and effective marketing will be crucial. Potential investors should watch for market penetration rates and the acceptance of Chronos ExoCR in comparison to existing products.
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MELVILLE, NY / ACCESSWIRE / May 15, 2024 / As advancements in technology make it easier to enhance natural beauty, the global aesthetics market, which was worth
The increased demand and interest in the expansive aesthetics marketplace have led to the integration of innovative technologies like biotechnology, which could further fuel the growth of the bio-cosmeceuticals market. BioRestorative Therapies is a clinical-stage biotech company leveraging its intellectual property portfolio, core competencies in stem cell biology and current Good Manufacturing Practice (cGMP) to expand into the bio-cosmeceutical space.
BioRestorative recently announced signing a five-year exclusive supply agreement with Cartessa Aesthetics, LLC, a leading aesthetics company based in North America. Cartessa is known for its commitment to providing top-notch technologies and unmatched support to professionals in the industry.
"Cartessa is known for bringing differentiated, non-invasive technologies to the world's best aesthetic providers. To that end, we are thrilled to partner with BioRestorative to introduce a novel and proprietary cell-based innovation within this high-demand market category," shared Gabe Lubin, founder and CEO of Cartessa. "Upon mutual consent, the companies will also pursue opportunities to bring additional cell-based biologic products to existing and new aesthetics markets, both at home and abroad. We look forward to keeping our customers and the aesthetics industry at large updated as we progress toward making state-of-the art bio cosmeceuticals more widely available."
This agreement aims to leverage BioRestorative's extensive expertise in cell-based biologics, formulation and clinical manufacturing, along with Cartessa's strong presence and capabilities in the professional aesthetics market, including marketing and distribution. BioRestorative also plans to explore the potential of expanding this collaborative relationship to include a wider range of commercialized bio-cosmeceuticals and therapeutics through Investigational New Drug (IND)--enabling studies. The ultimate goal is to obtain approvals from the U.S. Food and Drug Administration (FDA) in the emerging bio-cosmeceuticals field.
Under the terms of this exclusive five-year agreement, BioRestorative has committed to supplying Cartessa with a predetermined minimum quantity of finished vials of its inaugural cell-based biologic commercial product annually. These vials will be sold under Cartessa's Chronos ExoCR brand as private-label products. Produced in BioRestorative's ISO-7-certified clean room using a proprietary manufacturing process, this exclusive product consists of a cell-based secretome that contains exosomes, proteins and growth factors. This biologic serum has been specifically designed to reduce the appearance of fine lines and wrinkles and enhance various cosmetic aspects.
"We believe this strategic agreement with an established aesthetics market leader like Cartessa validates our cell-based biologics platform and represents a transformative step toward our building a strong commercial engine capable of supporting profitable growth while also helping fund the continued advancement of our clinical, BRTX-100, and preclinical, ThermoStem®, pipeline," said Lance Alstodt, BioRestorative's CEO.
BioRestorative is not the only pharmaceutical company interested in the medical aesthetics market; companies like AbbVie, Cynosure and Sisram Medical are also investing in the industry.
Lance Alstodt is hoping to position BioRestorative as a leader, sharing, "We ended 2023 with approximately
Featured photo by Nataliya Melnychuk on Unsplash.
Contact Details
Investor Relations
ir@biorestorative.com
SOURCE: BioRestorative Therapies, Inc.
View the original press release on accesswire.com
FAQ
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