ELEVAI Labs, Inc. Acquires Worldwide License Agreement for Proprietary Stem Cell Manufacturing Technology
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The licensing agreement between Elevai Labs and INmune Bio for the use of 'EMx' technology represents a strategic move towards vertical integration in the biotechnology and medical aesthetics industry. The ability to produce cGMP grade mesenchymal stromal cells (hucMSCs) in-house could significantly reduce costs for Elevai and streamline their production process. This is critical as cGMP (current Good Manufacturing Practice) standards are required by regulatory agencies for the manufacturing of pharmaceuticals and biologics, ensuring the quality and safety of products.
The use of hucMSCs in skincare products is an emerging trend, capitalizing on the regenerative properties of stem cells. By controlling the manufacturing process, Elevai could potentially enhance the consistency and purity of the stem cells used in their products, which is a competitive advantage in the medical aesthetics market. The long-term implications for Elevai include potentially increased market share and stronger brand recognition as an innovator.
Elevai's expectation that the 'EMx' technology will lower production costs could have a positive impact on their financials, making their products more competitively priced or improving profit margins. However, it is important to consider the initial investment and ongoing royalty payments, which could affect short-term financials. The ethical sourcing and screening of umbilical cords are also crucial for maintaining the company's reputation and adhering to industry standards.
The exclusive, worldwide rights granted to Elevai for the 'EMx' technology underscore the potential for international expansion and the ability to tap into the global skincare market. The medical aesthetics industry is experiencing growth and the demand for innovative products is on the rise. Elevai's strategy to incorporate advanced stem cell technologies in their skincare line could meet consumer demand for high-quality, effective products.
It is also worth noting that partnerships and licensing agreements like this can serve as a signal to investors and competitors about a company's direction and potential for growth. Elevai's partnership with INmune Bio could be seen as a commitment to innovation and could attract interest from stakeholders looking for investment opportunities in cutting-edge skincare technologies.
While the agreement could enhance Elevai's competitive position, the company must navigate the complex regulatory landscape that governs the use of human-derived materials in cosmetic products. The success of this technology integration will depend on consumer acceptance of stem cell-based products and the ability to effectively market the scientific advantages to a broader audience.
The financial implications of the licensing agreement for Elevai Labs are multifaceted. The initial deposit and tech transfer fee represent a significant investment that will impact cash flow in the short term. Moreover, the nominal royalty on sales adds a variable cost component to the company's financial model. These expenditures must be weighed against the anticipated cost savings and potential revenue growth from the integration of the 'EMx' technology.
Investors should monitor the company's quarterly financial statements following the execution of the agreement to assess the impact of these costs on Elevai's profitability. Additionally, the market's response to the enhanced products will be a critical factor in determining the return on investment. If Elevai's products gain market traction, the increased sales volume could offset the initial costs and royalties, leading to a favorable long-term financial outlook.
It is also essential to consider the risks associated with the scalability of the 'EMx' technology and the potential for market saturation. Elevai's ability to maintain a competitive edge will depend on continuous innovation and the effective protection of intellectual property rights associated with the 'EMx' technology.
ELEVAI Labs to commercialize use of proprietary technology designed to produce high-quality, cGMP grade mesenchymal stromal cells at lower-cost
NEWPORT BEACH, Calif., Jan. 16, 2024 (GLOBE NEWSWIRE) -- Elevai Labs, Inc. (Nasdaq: ELAB) a medical aesthetic company specializing in physician-dispensed skincare is pleased to announce it has signed an exclusive, worldwide manufacturing and processing technology licensing agreement with INmune Bio, Inc., [Nasdaq: INMB]. The licensing agreement grants Elevai a license to use INmune Bio’s proprietary “EMx” technology, developed by INmune Bio, Inc., CMO, Mark Lowdell, PhD, that enables Elevai to manufacture current Good Manufacturing Practice (“cGMP”) grade, human umbilical cord-derived mesenchymal stromal cells (hucMSCs) at a lower cost to Elevai than purchasing hucMSCs outright. Manufactured hucMSCs can be incorporated into certain licensed topical cosmetic products sold in the medical aesthetics skincare market.
Elevai believes incorporating the “EMx” technology into its operations is a step towards the company’s goal of achieving vertical manufacturing integration, while also expanding long-term production capabilities and lowering overall costs. Ultimately, Elevai believes controlling its processes through its product pipeline with what it believes to be efficient technologies like “EMx” will allow greater stem cell consistency, purity, and propel Elevai’s branded cosmetic products further to maintain the company’s position as an industry innovator in the medical aesthetics skincare market.
Highlights of the Licensing Agreement:
Innovative Manufacturing: The licensed “EMx” technology is a proprietary manufacturing process that entails specific know-how designed to efficiently produce cGMP grade hucMSCs. The licensing agreement grants Elevai an exclusive license, to utilize “EMx” technology for the development and commercialization of licensed topical cosmetic applications. Elevai expects the “EMx” technology to provide the ability to manufacture cGMP grade hucMSCs for its future topical cosmetic product development and manufacturing needs, at a lower cost than purchasing them at market which Elevai believes enhances its competitive position for long-term success.
Global Rights: The agreement stipulates worldwide rights, emphasizing the global impact and potential of this license-based partnership.
Ethical and Quality Standards: The agreement requires all licensed topical cosmetic products to be manufactured in compliance with cGMP and ethical sourcing and screening of umbilical cords of healthy full-term newborns.
Consideration: Under the agreement, Elevai will make an initial deposit for the license in two installments over six months, and a final tech transfer fee within two years of executing the agreement. As further consideration under the agreement, Elevai will be required to pay a nominal royalty on the sale of licensed topical cosmetic products that are manufactured using the “EMx” technology.
Statement from the Company:
In response to the license agreement, Jordan R. Plews, PhD, CEO of Elevai Labs, Inc. stated: "partnering with INmune Bio, Inc. aligns perfectly with our mission to pioneer innovative stem cell exosome products. Their understanding of efficient human stem cell isolation and large-scale manufacturing provides us with a remarkable opportunity to expand our manufacturing capabilities, expand our product portfolio, and make a significant impact in the market."
About ELEVAI Labs
ELEVAI Labs, Inc. [Nasdaq: ELAB] is a medical aesthetics company developing cutting-edge physician-dispensed skin care applications. The company solves unmet needs in the medical aesthetics space through a combination of cutting-edge science-driven and next-generation consumer applications. ELEVAI Labs develops topical aesthetic skin care cosmetic products for the physician-dispensed market, with a focus on leveraging a proprietary stem cell exosome technology. For more information visit www.elevaiskincare.com.
Forward-Looking Statements
Certain statements made in this press release are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified using words such as "anticipate", "believe", "expect", "estimate", "plan", "outlook", and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements reflect the current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, actual results may differ materially from the Company’s expectations or projections. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: (i) the failure to meet projected research & development and production targets; (ii) changes in applicable laws or regulations; and (iii) other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in other reports and other public filings with the Securities and Exchange Commission (the "SEC"). These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the registration statement filed with the SEC. The Company’s SEC filings are available publicly on the SEC’s website at www.sec.gov. Any forward-looking statement made by us in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether because of new information, future developments, or otherwise, except as required by law.
Media Contact
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Chief Marketing Officer
contact@elevailabs.com
Investor Relations
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FAQ
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