Natural wellness company Holista CollTech (ASX: HCT) and skincare specialist Skin Elements (ASX: SKN) released a joint statement this morning, announcing a binding deal to launch an alcohol-free hand sanitiser combining Skin Elements’ skin-sensitive anti-microbial formula with Holista’s Path-Away active ingredient.
The initial order for the active ingredient was said to be a minimum of $600,000 in the first year with minimum order quantities to be reviewed every three months.
The Path-Away ingredient was first developed by US company Global Infection Control Consultants, although Holista now owns the exclusive rights to distribute the product in Australia.
According to Skin Elements, its proprietary Invisi Shield natural hand sanitiser is a world-first in combining advanced natural skincare formulations with the active ingredient being marketed by Holista.
Both companies confirmed that Skin Elements’ hand sanitiser will be available in over 10,000 retail stores across Australia and New Zealand later this month ahead of being launched in other global markets shortly.
“This new sanitiser significantly strengthens our range of existing sanitisers which is being unveiled after two years of product development and test marketing to independent pharmacies, and selected schools and day-care centres in Western Australia,” said Skin Elements’ executive chairman Peter Malone.
“It extends Skin Elements’ portfolio of award-winning nature-based healthcare and skincare products researched and developed over the past 20 years,” he added.
Skin Elements said it can already produce up to 20,000 100ml bottles of Invisi Shield in the first month at its West Perth facility and will conduct quarterly reviews of its production capacity to assess if additional contract facilities are required to increase production to meet increased future demand.
The pair intends to boost commercial availability as part of an “accelerated collaboration” to meet the increased global demand for sanitisers as a result of the COVID-19 pandemic that has gripped every nation over the past three months.
With the pandemic showing no signs of slowing, demand for hand sanitiser, as well as other hygiene-related medical supplies, have risen sharply across the world.
Moreover, market analysts expect demand for such products to persist after the pandemic recedes.
A major selling point being highlighted by both companies is the lack of alcohol in the finished product.
Skin Elements said the novel sanitiser was an “all-natural product” that does not use alcohol and could thereby appeal to health-conscious consumers anxious about using alcohol-based products repetitively.
The new hand sanitiser is currently being formulated by Skin Elements using third party independent test results on ingredients.
Once finalised, the assessment of applicable regulatory framework and further appropriate independent laboratory testing will be undertaken as required.
From a regulatory perspective, the hand sanitiser does not require Therapeutic Goods Administration approval given it will be categorised as a personal cosmetics product and is already listed on the excluded goods list.
“Life after COVID-19 will see more use of sanitisers at a personal level and I am happy to see two Australian companies take the message of ‘all-natural’ and ‘alcohol-free’ to the world as an alternative to alcohol,” said Dr Rajen Manicka, chief executive officer of Holista.