Bioxyne recruits distributor for developing Asian markets ahead of Malaysia, China push

Bioxyne ASX BXN Asian market distributor
Bioxyne expands its reach into Thailand, Philippines, Myanmar, Cambodia and Mauritius.

Health products company Bioxyne (ASX: BXN) has extended its reach into more Asian markets after inking a distribution deal with Dato Louis Chong group marketing company ASVA International to sell its Bioxyne products in Thailand, Philippines, Myanmar, Cambodia and the African gateway country, Mauritius.

Bioxyne started its push into Asia last year, launching three health-and-beauty products in the region in December 2017 after being granted a direct-selling licence in Malaysia in October 2017.

Earlier this year, on 16 January 2018, Bioxyne unveiled plans to launch three additional products in Malaysia, with its managing director NH Chua then tipping a China market launch by 31 March 2018.

In February, Bioxyne said it was working on plans to cast its vitamin-boosted New Zealand honey, colostrum, and dairy-milk formula product MYMANA into China, with efforts to secure a Chinese import licence in progress.

The company later predicted that direct sales into China would take place in the second half of calendar year 2018.

Chief executive officer Mr Chua today highlighted the importance of the latest deal to the company’s South East Asian region roll-out.

“This initiative will give Bioxyne immediate access for its products to a number of growing markets in the Asian region through established direct sales channels. This will allow the company to focus on developing Malaysia, where it has a direct-selling licence, and to work on other key markets in Asia,” he said.

According to its March investor update, Bioxyne’s South East Asian sales strategy also includes establishing a direct-selling market in New Zealand in the half-year ending June 2018, then, in Australia, during the December 2018 half, with Vietnam and Indonesia to follow in 2019.

The latest announcement did not feature an update on company efforts to sell into China.

Immediate revenues

Bioxyne’s deal with sole, exclusive regional distributor ASVA starts straight away with a US$200,000 (A$266,178) order for the Bioxyne product range.

The company’s product range includes those flagged for launch in Malaysia at the start of the year — the Bioxyne Mustang nutritional shake for men, as well as its Bioxyne Progastrim adult probiotics for gut and immune health, and Bioxyne proTract infant probiotics for treating atopic dermatitis.

Bioxyne’s range also includes the three products it launched into the Asian market in December, the B18 dairy-based nutritional health drink, the women’s weight-loss and beauty product Allura and its bee-venom, collagen-peptide, stem-cell-extract and harakeke-flax-gel beauty serum BEssense.

Farm-in options

Bioxyne has inserted call options to its ASVA agreement, allowing it to snap up interests of up to 70% in the business created in each country market by 1 July 2021.

To achieve this, Bioxyne would pay either an unshared multiple of the 12-months-preceding earnings before interest, tax, depreciation and amortisation — minus liabilities on the acquisition date — or a multiple of net tangible assets, whichever sum has the highest on-paper value.

The seller can choose to take half of its sell-price in Bioxyne shares at 85% of the volume-weighted average price in the 10 days before the deal’s completion, if regulators agree to the acquisition.

Bioxyne securities rocketed 21.2% by late morning to pause at A$0.08.

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