Biotech Firm SemBioSys Gets Serious About Personal Care With Botaneco Unit

Canadian biotech firm SemBioSys is putting greater focus on the personal-care ingredient supply side of its business with the launch of a new Botaneco unit devoted to the development of functional - and natural - oil systems.

Botaneco will offer "high-performance, naturally derived base emulsions and delivery systems" that have the potential to change "the way in which many cosmetics and personal-care items are developed," according to an Aug. 20 release.

The first "multifunctional oil system" available from Botaneco is derived from safflower seeds. When incorporated in personal-care products, the system hydrates the skin and enhances its barrier function.

"One of the challenges for the industry up to this point [is that] you have had to make real tradeoffs between how natural you would be and how functional you would be," Andrew Baum, president and CEO of SemBioSys Genetics, said in an Aug. 30 interview.

"With this new technology ... you're able to have your cake and eat it too. We offer superior performance - not just equivalent performance - and it is an all-natural system," Baum said.

The firm says its hydration and skin-protection claims are backed by clinical research. "Right now [that data] is proprietary but we're hoping to publish it in a peer-reviewed dermatology journal in the future," Nancy Markley, PhD, managing director of Botaneco, told "The Rose Sheet."

In addition to its aesthetic benefits, the system cuts down on formulation time. "Typically it takes about four to five hours to make a finished product. In this case, you can make a finished product in less than 30 minutes," Markley said.

Botaneco's system can also be useful as a delivery mechanism, she said. "If you're delivering a fragrance, you'll have sustained release of that fragrance over time. You might have sustained release of very healthy nutritional oils or vitamins as well," Markley said.

As the system is naturally derived, it allows formulators to "go green" easily and profitably, she suggested.

Other cosmetic ingredients on the market provide benefits that the Botaneco system provides - synthetic emulsifiers like silicones, for example, soften and soothe - but none have all the benefits offered by SemBioSys's technology, Markley said.

Currently the system is used in lotions, lip care products, moisturizers and eye replenishers. The firm is investigating the system's performance in soap.

Some manufacturers that formulate with Botaneco's technology use it as a "competitive marketing tool," Markley said.

Botaneco is evaluating a co-branding strategy with selected companies that would allow it to put its name on finished products, she added. The arrangement would require Botaneco to provide promotional support and assist in developing a marketing strategy.

Baum was optimistic about the future of Botaneco oil systems: "Our belief is that the benefits of the technology and the products from that platform are going to be so obvious to the consumer and ultimately so requested by the consumer that we'll create the opportunity for our customers to really differentiate themselves and offer products that those without [our] ingredients can't offer," he said.

The establishment of Botaneco as its own division makes for "a focused organization with all the resources to make this launch successful for our customers and our stakeholders," according to Baum.

"We wanted to make sure that we're able to be a comprehensive partner for our customers all the way through supply to end use. With the creation of Botaneco we've done that," he said.

Botaneco will serve as a source of short-term revenue, with longer-term revenue coming from the firm's pharmaceutical pipeline, SemBioSys notes.

Botaneco will build its business by creating systems based on oil seeds other than safflower. "The intent is to build a portfolio based on the [seed] oil body technology so you can build on the first-generation product from safflower and then expand into other crops that have unique properties and benefits to the formulator and to the consumer," Markley said.

"We can build a company around the oil body platform without necessarily having to go to a finished product model, a branded product line," she concluded.

- Molly Laas ([email protected])