11 July 2024

Incanthera plc

("Incanthera" the "Company")

Commercial Order Update

Second Production Order Confirmed

Incanthera plc (AQSE:INC), the company specially focused on innovative technologies in dermatology and oncology, is pleased to announce that the second production order for 250,000 units has been confirmed as the next step in our commercial deal with Marionnaud AG, part of the Watsons Group.

On 3 June 2024, in a Commercial Update to the market, Incanthera advised that, following meetings in Switzerland with Marionnaud and A.S. Watson, our first production order ("Launch Order") for Incanthera's luxury skincare brand range, Skin + CELL, had risen from 50,000 units to 100,000 units in anticipation of higher demand, yielding expected Increased first order revenues of c. £4 million.

It was also indicated that the second production order would be larger, at an estimated 250,000 units, to fulfil the European launch demand.

As a result of continuing discussions with Marionnaud and A.S. Watson, the Company is pleased to confirm that the second production order for 250,000 has now been placed by Skin and Cell AG to Frike Cosmetic A.G. in Switzerland for supply to Marionnaud to meet the anticipated demand for further European roll out and the start of the planned Asian roll out.

The second production order, scheduled for delivery in the current financial year (ending 31 March 2025),  brings  total placed orders to over 350,000 units of its products with Frike Cosmetics in Switzerland for supply to Marionnaud and other members of the AS Watson Group, supporting management's projected revenues for this year to exceed £10 million and for Incanthera to achieve profitability

Incanthera's Launch Order of 100,000 units is currently in production with our manufacturing licensing supplier, Frike Cosmetic A.G. for delivery to Marionnaud in preparation for launch in September.

Incanthera's manufacturing deal with Frike Cosmetic A.G., as announced in conjunction with the commercial deal in December 2023, ensures they hold responsibility for the full manufactured product of Skin + CELL, which includes bottles, receipt of raw materials, i.e. formulation to fill bottles, packaging and printing of our final Skin + CELL branded product.

This is overseen by Incanthera's Swiss subsidiary, Skin + CELL A.G., responsible for the worldwide distribution of Skin + CELL's range of five luxury skincare products (Face, Hand, Body, Serum and Eye Cream) which is to be launched in September 2024, through c. 60 of Marionnaud's highest traffic stores, in Switzerland and Austria.

Skin + CELL A.G. is also currently focused on preparation of pre-launch in-store education and pre-marketing schedules, demonstrating the essential infrastructure and manufacturing operational synergies with Marionnaud as the teams work together.

The Company is delighted in the ongoing commitment and enthusiasm of Marionnaud for Skin + CELL's unique science-based skincare and their demonstrable confidence of the anticipated demand for our Skin + CELL range to their European customer base and the wider A.S. Watson Group.

Incanthera retains the right to commercial discussions for potential licensing deals with other organisations in all other global territories outside those in which Marionnaud and AS Watson will have geographical exclusivity to Skin + CELL.

Commenting, Chairman, Tim McCarthy, said:

"It is fantastic to bring this further positive update to the market.

This clearly evidences the confidence and anticipation with which Incanthera, and its Swiss subsidiary, Skin + CELL A.G. is managing the production order cycle, in close coordination with Marionnaud, as the teams work collaboratively towards the launch and roll out of Skin + CELL in Europe.

The essential infrastructure and framework that the team established for the Commercial deal announcement in December 2023 is now in full operation as we ramp up the production orders and prepare for launch.

The resulting revenues generated to Incanthera will allow us to further bolster our inventory capacity and ongoing commercial operational model, thereby driving revenue growth and, in turn, increasing the value of our company and the capacity for returns to shareholders."

This announcement contains inside information for the purposes of the UK Market Abuse Regulation.

The Directors of Incanthera accept responsibility for this announcement.

For further information please contact:

Notes to Editors

About Incanthera plc

Incanthera is a specialist company focused on innovative technologies in dermatology and oncology. It seeks to identify and develop innovative solutions to current clinical, commercially relevant unmet needs, utilising new technology from leading specialists and academic institutions as well as its in-house development team.

The Company originated from the Institute of Cancer Therapeutics ("ICT") at the University of Bradford.  Incanthera's strategy is to develop each candidate in its portfolio from initial acquisition or discovery to securing its future through commercially valuable partnerships at the earliest opportunity in its development pathway.

For more information on the Company please visit: www.incanthera.com

@incantheraplc

About Skin + CELL

Skin + CELL is Incanthera's luxury skincare brand utilising our ground-breaking formulation and delivery expertise, to bring scientifically proven formulations to cosmetics. Skin + CELL's unique formulations, enriched with targeted bioactive B3 (an activated form of niacinamide) are delivered directly into the skin's cells to optimise and protect cellular health, energy and protective capabilities.

Incanthera's skincare technology harnesses unique delivery pathways through recently patented formulations designed by our in-house experts who have previously formulated skincare for some of the world's leading skincare and pharmaceutical companies. These formulations fortify otherwise depleted physiological pathways to improve the skin's performance, ability to self-repair and to address previously unmet cosmetic conditions in skin health.

•     Skin + CELL's unique formulations, currently enriched with targeted bioactive B3 (an activated form of niacinamide) but anticipating further bioactive ingredient formulations are delivered directly into the skin's cells to optimise cellular health, energy and protective capabilities.

•     Independent studies have shown Incanthera's technology is uniquely effective in delivering Bioactive B3 into the skin, energising the living cells of the skin to maintain natural health and protection against adverse environmental challenges and maintaining even skin tones.

•     Skin + CELL's complementary range of products are based on advanced, clinically designed, formulation concentrates which combine leading edge pharmaceutical enhancement technology with selected prestige cosmetic ingredients to give an effective product which gives a silky emollience in use and leaves the skin visibly radiant, energised and protected.

Skin + CELL's luxury skincare current range extends across face, body, hand, face serum and eye cream, and will also include SPF concentrations and further bioactive derivatives of vitamins in the future.

About Marionnaud

Marionnaud is the largest luxury perfumery and cosmetics chain in Europe with over 1,220 stores and a 27% market share in France.  Marionnaud is managed by the AS Watson Group based in Hong Kong, the world's largest international health and beauty retailer.

https://www.marionnaud.com

About A.S. Watson

The A.S. Watson Group is the world's largest international health and beauty retailer, with 16,100 stores in 28 markets, primarily in Asia and Europe. A member of CK Hutchison Holdings, A.S. Watson operates the world's largest portfolio of retail formats, retail brands and has the largest geographical presence including a significant online retail presence.

http://www.aswatson.com/

https://youtu.be/IZ6TolZi4Go 

Forward looking statement disclaimer

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions shareholders and prospective shareholder holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.