Cosmetics-maker Bod Australia (ASX: BDA) has decided to upscale its sales and distribution efforts courtesy of a timely agreement with In2Pharma, a leading pharma sales broker capable of expanding Bod’s market reach.
The deal effectively means that Bod will bolster its natural medicines portfolio and improves its chances of driving revenue growth across its Australian distribution network.
In2Pharma will support and expand Bod’s impetus, as a well-established pharma broker that facilitates market entry for various products into pharmacies, health food outlets and giftware in the retail sector.
The agreement will see the two companies collaborating on several fronts including the implementation of a two-tier strategy seeing Bod and In2Pharma teams working together to provide “full coverage” across Bod’s distribution network.
According to Bod, “the partnership will allow the company to increase its sales efforts and training initiatives while defraying overhead costs,” with the additional exposure expected to provide positive sales growth in Australia.
Additionally, In2Pharma will charge a fee-for-service on sales generated by its own sales team with the company representing Bod’s portfolio of products such as MamaCare, Flexofytol and Pinpoint.
In2Pharma will also sell and distribute Bod’s two soon-to-be-launched brands — Enterofytol, for the treatment of Irritable Bowel Syndrome (IBS) and SediStress, for the treatment of stress and anxiety.
The two natural medicines intend to combat two growing health issues in Australia with the reception of the drugs into consumer’s hands keenly anticipated by analysts.
The two new brands have been obtained via a Bod’s distribution agreement with Belgian manufacturer Tilman S.A. The duo are expected to boost Bod’s market exposure and ensure it has “access to the top-five most lucrative and fastest growing market segments in the pharmaceutical industry,” according to Bod Australia.
What is driving the growth of natural medicines?
The current top five segments include healthy ageing, women’s health, digestive health, daily wellbeing and immune system health, as the primetime segments attracting most attention from consumers.
“Through the partnership, Bod will have the support it needs to drive further growth across Company’s ever-expanding distribution footprint with minimal additional costs. We look forward to witnessing revenue and sales growth across our health product range in the coming months,” said Jo Patterson, CEO of Bod Australia.
“Further, we look forward to generating additional sales through the introduction of new brands Enterofytol and SediStress. These products will provide the Company with increased exposure to two very lucrative market segments and we anticipate a strong uptake following their launch later this month.”
“The Company is continuing to work towards the commencement of its Phase I Clinical trials, increase in distribution channels and progression of international opportunities and looks forward to updating shareholders as developments become available,” said Mr Patterson.
In parallel to today’s cosmetics-focused distribution with In2Pharma, Bod is building a sustainable, multi-faceted cannabis business through a supply and collaboration agreement with Swiss botanical extracts manufacturer, Linnea Natural Pharma Solutions, which Bod intends to develop into a range of over the counter and therapeutic products based on GMP-certified cannabis extracts.
Enterofytol is based on a combination of Bod’s bio-optimised turmeric extract and fennel oil, which work together to ease abdominal pain and reduce inflammation.
In a recent multicentre, double-blinded randomised, placebo-controlled study conducted by Tilman, 64% of patients showed a significant decrease in abdominal pain following the administration of Enterofytol.
According to Bod, the product provides the Bod with exposure to the lucrative IBS market, estimated to be worth approximately $89 million in 2016 and growing at an annual rate of 18%.
By the end of March 2018, Bod hopes to introduce SediStress, “a natural alternative to managing stress, anxiety and insomnia.”
The product harnesses a proprietary extract of passionflower and is one of the fastest growing and most lucrative natural medicines in Europe.
According to industry research, from the serious illnesses reported in the last 12 months; anxiety and depression were ranked as the top two by Australian Physicians.
Currently, benzodiazepines are the most commonly prescribed pharmaceutical treatments for anxiety, depression and insomnia, with over seven million prescriptions issued per year.
The rapid growth of anxiety and depression in Australia, in addition to debilitating side effects caused by current drug offerings, “highlights a significant opportunity as SediStress offers no side effects, no daytime sleepiness and no dependence or addictive traits,” according to Bod.
According to researchers, in a recent study of 2,928 patients with moderate anxiety and based on two capsules of SediStress per day — Bod witnessed a 41% decrease in anxiety, 75% improvement in insomnia and a 72% improvement in anxious mood.
Potentially most commercially significant is the fact that “83% of patients also wished to continue using the product,” according to Bod.