Investment spurs on development at Botaneco

Tag : safflower seeds

The Canada-based company is a wholly owned subsidiary of biotechfirm SemBioSys which hopes that the increased investment will allow the businessunit to function independently of the parent company.

Targeting the personal care industry

"This transaction provides Botaneco with the financial resources necessary to aggressively pursueopportunities in the personal care, over-the-counter and topicalpharmaceutical markets completely independent of SemBioSys," said CEO Andrew Baum.

Venture capital firm Avrio Ventures has announced a $4m investmentin the company in the form of a convertible debenture helpingBotaneco commercialize its Hydresia range of personal careingredients.

Hydresia is a natural emulsion base derived from safflower seeds and can replacesynthetic and petroleum-derived ingredients according to thecompany.

Botaneco launched the second generation oleosome ingredient atIn-Cosmetics in Amsterdam earlier this year. Hydresia G2 can beused over a broader pH range than the original ingredient, whichthe company claim makes it perfect for use in low pH exfoliants andanti-aging products.

"Dozens of companies are now developing consumer products withHydresia, and we expect to see a further array of product launchesbased on these ingredients in the coming quarters ," added Baum.

Increased demand due to natural trend

Botaneco hopes that the current trend for natural ingredients willhelp the company get ahead in the personal care market.

"The company's oleosome technology is well positioned to capitalizeon this trend away from petroleum and other synthetic ingredients," said partner of Avrio Venture and new board member of Botaneco,Aki Georgacacos.

The Botaneco venture was designed to be the cash cow of theCanadian biotech company, providing a strong and dependable revenuestream to finance the pharmaceutical research of the parent companywhich is not profitable in the short-term.

Although the biotech firm posted improved revenues of just over CAD$1m ($950,000) for the first half of 2007, it made a net loss ofalmost CAD $6.5m ($6.2m).