Bod Australia (ASX: BDA) and Linnea SA have kicked off exploratory work into developing cannabis-based formulas for a new cosmetics range, which Bod anticipates releasing to the market during 2018.
Late last month, Bod Australia and Swiss herbal extracts company Linnea SA announced a cannabis supply and collaboration partnership.
The collaboration involves using Linnea’s cannabis extracts to develop health and beauty products that target the market between medicinal cannabis products and cosmetics.
With Linnea’s assistance, Bod is creating cannabis-based topical treatments for inflammation and sensitive skin. The treatments include serums, foam-based creams and balms using Linnea’s NioSkin active ingredient which enhances skin penetration.
“This exploratory formulation work highlights how Bod is now moving rapidly and decisively towards developing a range of unique cosmetic products by leveraging the extensive expertise and research secured through our partnership with Linnea,” Bod Australia chief executive officer Jo Patterson said.
Mr Patterson added access to Linnea’s NioSkin formulation provides Bod Australia with a “unique advantage” due to its “superior efficacy, uniform dispersion of functional ingredients, rapid skin absorption, enhanced penetration and optimal bioavailability”.
Bod is anticipating releasing its first cannabis-based topical treatment range in 2018.
According to Bod, the products will be developed and manufactured at its Italian facilities and exported to Australia and other international markets including Asia and the Americas.
The company aims to tap into China’s skincare market which soared to A$33 billion in 2016 and Morgan Stanley predicts it will continue growing to become the world’s largest cosmetic market.
Meanwhile, the global cosmetics market is forecast to increase to A$233.7 billion by 2022, with the Asia-Pacific region comprising 40%.
Additionally, medicinal cannabis product revenue is anticipated to grow to A$72.8 billion by 2025.
Bod Australia also plans to develop cannabis formulations for use in animals with skin irritations.
Shares in Bod Australia surged almost 30% in the first hour of trade today.