We've signed Heads of Terms with SCHAKAU Managementberatung GmbH, giving them worldwide exclusive rights to commercialise ETSYL®, our proprietary bioactive peptide, across cosmetics, skincare and luxury beauty. This turns something we originally developed for our tissue engineering work into a second commercial route for the business.

The exclusivity, our full intellectual property ownership, and confidentiality are legally binding now that terms are signed. The full 10-year exclusive term depends on SCHAKAU hitting agreed annual volume targets after an initial 12-month ramp-up, so this isn't locked in for a decade regardless of performance.

The structure is capital-light for us. SCHAKAU is funding an estimated €300,000 towards clinical testing, regulatory compliance and brand launch, and carries the cost and responsibility for all downstream consumer product filings. In return, we expect to earn manufacturing supply revenue as we supply the raw bioactive material, with initial revenues expected during the 12-month product preparation phase ahead of retail launch. On top of that, we'll take 50% of net licensing income from any third-party brand deals SCHAKAU strikes, after compliance and patent costs are deducted. Throughout, we keep 100% ownership of the underlying patents and technology.

SCHAKAU plans to launch ETSYL® as the core ingredient in its luxury skincare brand, HANDS OF GOD, alongside wider licensing to other cosmetic brands.

As with any early-stage partnership, the commercial outcome depends on execution, and the longer-term exclusive term is conditional on targets being met.

If you have questions about this announcement, we'd encourage you to raise them through our investor hub.