Evolution perfected our discovery platform
by Greg McGuinness
BUSINESS DESCRIPTION: Cocky Smart Pty Ltd is a biotechnology company focused on the development and commercialisation of a proprietary avian extract that has shown insecticidal, antimicrobial, wound healing and anti-cancer properties. Cocky Smart’s proprietary avian-extract is its source of evolutionary proven natural solutions for potential applications in global pest, animal health and human health markets.
COMPANY BACKGROUND: Cocky Smart owns a novel drug discovery platform derived from extracts of the cockatoo preen gland. The proprietary avian-extract is a source of new biologically active ingredients for multiple potential markets and applications. The avian-extract is an evolutionary-proven drug discovery platform. There are 130 compounds in the avian-extract with the potential for biological activities, new patents and products. 9 active ingredients and/or combinations have been identified that have shown in vivo insecticidal properties, ex vivo anti-cancer effects in isolated cancer cells and in vitro antibacterial properties. These active ingredients and properties are the source of the Cocky Smart products and pipeline.
SUMMARY OF BUSINESS STRATEGY: The business model is to leverage its avian discovery platform to develop naturally-derived solutions to global pest, parasite and skin cancer problems, prove the safety and effectiveness of the products and then commercialize the products through mid-late stage licensing deals with multinational partners in target markets worldwide. Sales and license revenues from marketed products will be reinvested to develop pipeline skin cancer products in collaboration with pharma partners.
Ectoparasiticides - for the treatment of flies, lice, ticks and fleas in livestock and companion animals. Jonotoc is the candidate lead product for the prevention of fly-strike in sheep with over 99% efficacy shown over 90 days. Jonotoc has multiple safety and efficacy advantages over competitor products. Jonotoc is expected to be approved for sale in Australia, New Zealand and South Africa in late 2014, and in other key markets in 2015. Additional ectoparasiticides are in early-stage development to broaden the species and activity claims to cover lice and ticks in sheep and cattle, and a product for fleas and ticks in dogs and cats.
Pesticide range - with insecticidal activity against insects such as ants, fruit fly, weevils, locusts and termites are in early-stage development for agricultural and commercial pest control applications. Lead product is a termiticide for the eradication of termites from buildings, and pipeline products for crop protection and grain storage protection.
Skin cancer range - for the topical treatment of melanoma, Basal Cell Carcinoma and Squamous Cell Carcinoma. Topical melanoma product in exploratory stage as an effective replacement or conjunctive therapy for surgical excision of primary melanoma skin cancers. Efficacy against BCC and SCC have also be investigated with the same encouraging results as melanoma.
Cosmaceuticals – personal skin-care moisturising products through to skin depigmentation or skin lightening creams. Variations to include product feature combinations of superior moisturising, sun block protection and anti-insecticidal protection.
Ectoparasiticidal efficacy - A pilot field trial in 200 Merino sheep demonstrated that Jonotoc was 99.54% effective in preventing flystrike in sheep over 90-days from a single treatment at the recommended dose. Controlled sheep field trials are planned for the second half of 2013 to prove the safety and efficacy of Jonotoc for preventing flystrike in sheep, and gain regulatory approval for sale in key markets.
Anticancer efficacy - Preliminary research at ECU suggested that the synthetic avian extract formulation strongly inhibited melanoma and breast cancer cell proliferation. Results from a commercial contract research organisation confirm the anti-cancer properties of the synthetic avian extract (AVI-300). Initial in vitro studies indicate the same anticancer efficacy for melanoma, breast, kidney & brain cancer. Follow-up studies have commenced at UWA to determine the in vitro anticancer activity of a synthetic mixture of avian extract components. Mice models commenced in March 2013 and early results are very encouraging.
Parasiticide Market - The global parasiticide market was valued at US$5.3B in 2006 and is expected to reach US$6.0B in 2011, with a CAGR of 2.5%. The major ectoparasiticide product segments include flies, lice, mites, ticks and fleas covering both large animal and companion animal segments. Patent expiry, generic competition, and resistance problems have created a market opportunity for novel, safe and effective parasiticides that can combat resistance problems and boost drug pipelines.
Pesticide Market - The global pesticide market was valued at US$45.0B in 2009 and is projected to reach US$52.0B in 2014, with a CAGR of 2.9%. The major product segments include herbicides, insecticides and fungicides accounting for 51.2%, 24.6% and 14.9% respectively. Patent expiry, generic competition, and environmental concerns have created a market opportunity for environmentally-friendly, safe and effective pesticides.
Skin Cancer Market - The global melanoma therapeutics market was valued at US$800M in 2011 and is expected to reach US$2.6B in 2019 with a CAGR of 16.6%. There is a market opportunity for a novel topical skin cancer treatment that is an effective adjunctive therapy or replacement for surgical excision of primary melanoma or other skin cancer.
Cosmaceutical / Skin Lightening – The current global market is valued at just under US$10B with 71% from Japan, 26% from Asia and a little over 2% from the rest of the world. One third of the world’s population use a product on a regular basis. There is a massive unmet need for a highly effective product that is non toxic (preferably organic) and does not use bleaching agents like hydroquinone or mercury as used in current market leading products.
Wound Healing and Anti-Scarring – The global market for wound healing and anti-scarring is estimated at US$18B and US$8B respectively and there is opportunity for new formulations with superior efficacies.
STRATEGY & DISTRIBUTION: Cocky Smart’s business model is to leverage its discovery platform to develop effective product solutions for pests, animal health and human health, and commercialize products through mid to late-stage licensing deals with international partners.
EXIT STRATEGY: The Company intends to leverage various technologies to the highest commercial point of value through either early to mid-stage co-development, licensing or acquisition or possible IPO.