ELEVAI Labs: A Strategic Expansion in Biosciences and Skincare
ELEVAI Labs expands reach with new distribution partnerships, licensing agreement for therapeutic assets targeting obesity and the formation of skincare and biosciences subsidiaries.
ELEVAI Labs (NASDAQ: ELAB), a pioneering force in medical aesthetics, has made significant strides of late with the launch of new subsidiaries, the acquisition of an exclusive license for innovative therapies, and the establishment of new global distribution partnerships.
These strategic moves underscore ELEVAI’s commitment to advancing scientific research, developing transformative treatments, and expanding its market presence.
Launch of ELEVAI Biosciences and ELEVAI Skincare
In a bold move aimed at diversifying its portfolio and enhancing its capabilities, ELEVAI Labs announced the establishment of two new subsidiaries: ELEVAI Biosciences and ELEVAI Skincare.
ELEVAI Biosciences
ELEVAI Biosciences will focus on pioneering research and development in novel therapeutic solutions, with a particular emphasis on addressing obesity and muscle loss prevention. This strategic initiative underscores ELEVAI’s commitment to leveraging biotechnology to tackle pressing health challenges.
More specifically, ELEVAI Biosciences will concentrate on the development and acquisition of cutting-edge aesthetic medicines.
EL-22, the company’s lead asset, will target muscle mass preservation in the obesity market with a novel myostatin approach. ELEVAI Biosciences plans to test EL-22 in combination with popular weight loss drugs, including GLP-1 receptor agonists.
Commenting on the new subsidiary, ELEVAI Biosciences co-founder Deniel Mero said:
“There is a large unmet need of under-developed biotechnology assets we can look at to build a robust pipeline targeting multi-billion-dollar indications, starting with our clinical-stage lead asset in the obesity space. We look forward to unlocking the potential of EL-22 as a combination with weight loss treatments including GLP-1 receptor agonists, as we embark on the path to building an industry-leading aesthetic medicine company. I’m excited to be working under the Elevai Labs umbrella as co-founder of Elevai Biosciences and executing our future plan to develop and license additional assets, broadening Elevai’s existing expertise in aesthetics.”
ELEVAI Skincare
Simultaneously, ELEVAI Skincare will continue to cater to the growing demand for scientifically advanced skincare solutions. Harnessing biotechnological advancements, ELEVAI Skincare aims to develop products that blend effectiveness with sustainability.
By reorganizing its skincare operations into a separate entity, ELEVAI aims to enhance its focus and market penetration. The company believes that restructuring its new subsidiary will position ELEVAI Skincare to capitalize on emerging opportunities in the medical aesthetics skincare market while accelerating growth and profitability.
ELEVAI Labs CEO Jordan R. Plews commented on the new ELEVAI Skincare subsidiary, stating:
“The launch of ELEVAI Biosciences, Inc. and Elevai Skincare, Inc. as wholly owned operating subsidiaries signifies a significant milestone in our journey towards reshaping the future of medical aesthetics. With Elevai Biosciences, we are poised to lead the development of next-generation aesthetic medicines, while Elevai Skincare will continue to develop and deliver exceptional cosmetic solutions to our customers worldwide.”
Acquisition of Exclusive Licensing Agreement for Therapeutic Assets
ELEVAI Labs positioned itself in the biopharmaceutical space by acquiring an exclusive license to develop and commercialize novel assets targeting obesity and muscle loss prevention.
This licensing agreement, which gives ELEVAI global rights excluding South Korea, grants the company access to proprietary technologies, to develop and commercialize two novel assets for the treatment of obesity and muscle loss prevention.
The licensed assets include EL-22, a clinical-stage engineered probiotic expressing myostatin, and EL-32, a preclinical engineered probiotic expressing dual myostatin & activin-A.
Based on clinical and preclinical data, the company believes its licensed assets have the potential to significantly improve the standard of care for the treatment of obesity in combination with GLP-1 by preserving muscle mass while decreasing fat mass.
Based on the evidence, ELEVAI intends to make an IND submission in 2025 and to initiate clinical trials in the U.S. to further evaluate EL-22 and EL-32 in combination with one or more GLP-1 receptor agonists in obesity.
Company Co-Founder and CEO Jordan R. Plews stated:
“This license agreement represents a transformational and strategic milestone for Elevai. The adoption and use of other GLP-1 drugs has resulted in rapid weight loss and increases the desire for related aesthetic procedures linked to the side effects from these drugs, including significant unwanted muscle loss. We see the licensing of these two assets as an opportunity to provide an unmet need and expand into a large and growing multi-billion-dollar market.”
Global Distribution Partnerships
ELEVAI Labs further expanded its reach through its strategic global distribution partnerships, which include commitments totaling $4.9 million in potential top-line revenue.
To date, ELEVAI Labs has signed five international distribution agreements and is currently in discussions to sign as many as five additional agreements.
Each international distribution agreement has a contracted cumulative minimum purchase requirement of up to $4.9 million over the first five years.
The growing list of partnerships underscores ELEVAI’s commitment to scaling its commercial operations and maximizing market reach. By leveraging established distribution networks, ELEVAI aims to accelerate the adoption of its innovative products and therapies on a global scale.
Speaking on the partnership agreements, ELEVAI Labs Chief Commercial Officer Chris Kraneiss said
“Our establishment of a global footprint marks a significant milestone in our journey. This continued expansion into international markets is driven by strong partnerships and our unwavering commitment to excellence. While our forecasts are conservative, reflecting the challenges of entering new territories, our experience suggests that growth tends to accelerate in subsequent years. We’re excited about the opportunities ahead and eager to introduce our innovative skincare solutions to customers worldwide.”
Shares of ELEVAI Labs (NASDAQ: ELAB) closed the day at $0.68, up +2.26%.
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