Avivagen’s Unique Opportunity

Investor Information (VIV)  (cached 15 min)
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Avivagen’s discovery of the β-carotene-oxygen copolymer compound and its role in imparting non-vitamin A health benefits unlocks unprecedented access to an overlooked but important aspect of β-carotene biology. Commercially, the compound is readily produced in high concentration, reliably and consistently, by full oxidation of pure β-carotene conducted according to FAMI-QS standards (European Feed Additives and Premixtures Quality System). The presence of the β-carotene copolymer compound in OxC-beta™ products makes these unlike any other animal health products. Avivagen, as discoverer of the β-carotene copolymer compound, is the sole provider of this first-in-class product that unequivocally and safely delivers the non-vitamin A health benefits of β-carotene.

OxC-beta: Improving Health by Enhancing Immune Defences

 

 

The OxC-beta™ product lines now open up major, global opportunities in applications requiring the promotion and maintenance of animal and, eventually, human health.

In livestock, clear, consistent beneficial effects are obtained with just very small amounts of OxC-beta™ Livestock added to feed, indicating the product contributes a complementary, health-supporting function beyond that of vitamin A. That the benefits are seen across several species under various conditions speaks to the existence of an unfilled, apparent nutritional need that once may have been met with traditional diets containing β-carotene-rich forage materials that are no longer present in most modern livestock feeds.

In canines, for example, the Vivamune™ Health Chews supplement supports dogs’ skin, joints and gut health, helping to maintain healthy hip and joint function, promoting normal mobility, including in dogs with occasional stiffness.

The natural occurrence and long-term dietary consumption of the β-carotene copolymer compounds in β-carotene-containing foods and animal feed forages, as well as the absence of adverse effects in the use of OxC-beta products in livestock trials and in canine supplements, including targeted safety studies, all speak to the safety of this class of compound.

In addition to the generally useful health-promoting benefits of OxC-beta™ Livestock, the non-antibiotic nature of the product is a major opportunity for it to serve as a compelling alternative to the regular use of in-feed antibiotics.

Human Antibiotic Resistance Arising from Animal Feed Practices

Antibiotic resistance in humans is considered to be this century’s single greatest global health threat. An Oxford Journals’ Clinical Infectious Diseases article states “The ongoing explosion of antibiotic-resistant infections . . . could mean a literal return to the pre-antibiotic era for many types of infections”. Antibiotic resistance is already responsible for killing more than 700,000 people each year and the toll is projected to rise to 10 million by 2050.

Most recently, the UN committed to fighting ‘the biggest threat to modern medicine’: antibiotic resistance, with all 193 UN member states signing a declaration to fight drug-resistant superbugs.

The principal causes of antibiotic resistance include the common and widespread use of antibiotics in animal feeds to produce meat consumed by humans, as well as over-prescription by physicians for therapeutic treatment of human infections.

The quantity of antibiotics used in food animal production globally is at least as great as the amount used by humans. In some parts of the world antimicrobial use is far greater in animals than in humans; in the US, until recently at least, more than 70 percent of medically important antibiotics were used in animals. However, the use of medically important antibiotics for growth promotion in the U.S. is now subject to restrictions introduced January 1, 2017 and in Europe the non-medicinal use of antibiotics has been prohibited since 2006.

Nevertheless, antibiotic use in agriculture is expected to continue to grow due to increased economic growth, wealth and food consumption in the emerging world. Consumption of antibiotics by animals to produce meat products in the BRICS countries (the major emerging economies of Brazil, Russia, India, China and South Africa) alone, for example, is expected to double between 2010 and 2030.

Increased use of antibiotics drives increased drug resistance, as bacteria are exposed more often and for longer to the antibiotics used to treat them. The risks associated with the high use of antimicrobials are four-fold:

  1. Drug-resistant strains can be passed on through direct contact between humans and animals (notably farmers).
  2. Drug-resistant strains have the potential to be passed onto humans more generally through the food chain, i.e., when consumers prepare or eat the meat itself.
  3. Drug resistance genes can be passed between different bacteria.
  4. An indirect threat to human health arises from animal excretion. Resistant bacteria, as well as significant volumes of antibiotics, are excreted by animals, with most of the antibiotic unmetabolized. This releases resistant bacteria into the environment as well as causing the environment to be contaminated with antibiotics, providing further opportunities for exposure to bacteria and creating additional selective pressure for the development of drug resistance.

Much of the use of antibiotics in animals is not therapeutic. Instead, significant quantities are used either prophylactically in healthy animals, to stop the development of an infection within a flock or herd, or simply for growth promotion, to speed up the rate at which animals gain weight. Both uses are particularly prevalent in intensive agriculture, where animals are kept in confined conditions.

Alternatives to Antibiotics

A 2017 report from the PEW Charitable Trusts states that alternative products can play a significant role in allowing producers to reduce the use of antibiotics. Examples include bacteriophages, enzymes, phytochemicals, antimicrobial peptides, organic acids, probiotics, prebiotics, immune modulators and vaccines. However, the efficacy of alternative products tends to be variable across individual livestock operations and with the disease status of herds and is often affected by external factors such as weather or feed composition. More research is needed to understand exactly why efficacy is so variable and to ensure optimized use, but this is complicated by the fact that the mechanism of action (i.e., the molecular processes that generate the desired effect) for many alternative products is not well understood.

Avivagen’s Unique OxC-beta™ Product

The Avivagen Non-Antibiotic Solution

Avivagen’s OxC-beta™ Livestock is a commercially-available, non-antibiotic, economically competitive product that maintains health and productivity across species with performance comparable to antibiotics used for this purpose.

OxC-beta™ Livestock as a non-antibiotic replacement promotes health in livestock with productivity results comparable to those obtained with antibiotics. The OxC-beta™ product has demonstrated efficacy in numerous field trials in various species and under widely varying conditions. OxC-beta has no direct antibacterial effects, so the risk of creating antibiotic-resistant pathogens does not exist.

Importantly, unlike other alternative products, OxC-beta™ Livestock is efficacious across multiple species, performs reliably and consistently at low parts-per-million levels in feed, and, furthermore, has superior handling characteristics.

OxC-beta is being commercialized worldwide in jurisdictions such as Asia that, as first-followers of Europe’s 2006 ban on antibiotics in livestock feed, have anticipated the rapidly-evolving regulatory environment in North and South America and the rest of the world for the replacement of in-feed antibiotics.

The Feed Additive Market

The global animal feed additives market was valued at US$22.6 billion in 2017 and is projected to reach US$28.2 billion by 2022 at a CAGR of 4.5% from 2017. Globally some 32,000 feed mills produce approximately 1,000,000,000 tons of feed with the great majority of that volume manufactured by a small number of organizations that integrate milling of feed production with the raising of the animals. Avivagen’s OxC-beta™ product is competitively priced to be economically advantageous to livestock producers.

OxC-beta™ Livestock is approved for sale in the Philippines, Thailand and Taiwan and is manufactured at commercial scale to FAMI-QS standards. The product is being sold in the Philippines by UNAHCO, a leading producer of pig and poultry feed in that country.

Companion Animals – Vivamune™ Health Chews

OxC-beta™ products have demonstrated broad utility in providing health benefits, particularly to canine companion animals.

The Vivamune™ Health Chews supplement, taken in a once-daily chewable format, supports dogs’ skin, joints and gut health, helping to maintain healthy hip and joint function, promoting normal mobility, and supporting dogs with occasional stiffness. The product also promotes healthy skin and soothes skin-related issues associated with seasonal allergies.

In recently relaunching Vivamune™ Health Chews in the U.S., Avivagen entered into a marketing agreement with Cesar Millan, world-renowned dog behaviorist, best-selling author, and star of Nat Geo WILD’s Dog Whisperer with Cesar Millan and Dog Nation. The marketing agreement supports the promotion of Vivamune™ Health Chews supplement for companion animals.

In endorsing the product, Cesar Millan commented: “My focus has always been on products that really work for dogs. I have a team of veterinarians and doctors that I work with to help evaluate products. Everyone was impressed with Vivamune™ Health Chews. It’s shown remarkable results with our pack already and I’m excited to help this innovative Canadian company share their product with more people”.

Cesar further commented: “It’s unlike anything we’ve seen available for dogs before: a nature-inspired, scientifically-proven solution that helps to promote health from within the dog’s own immune system. It makes sense: start by ensuring a healthy immune system and end up with a healthier dog overall. In the training world we know: it’s all about supporting a healthy foundation.”

Investor Information

  • Scientifically-established alternative to in-feed, non-medicinal use of antibiotics in livestock and aquaculture
  • Near-term, growing revenues
  • Numerous milestones for success

Investor Letter of Transmittal

Download our Letter of Transmittal forms for investors.

Analysts

Avivagen is followed by the analysts listed below. Please note that any opinions, estimates or forecasts regarding Avivagen performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of Avivagen or its management. By reference to the information below, Avivagen does not imply its endorsement of or concurrence with any information, conclusions or recommendations as a result of analyst coverage.

Name Phone
Doug Cooper Beacon Securities Limited (416) 643-3863

 

Financial Reports

Please note that Avivagen’s fiscal year ends October 31st. For
additional financial and corporate documents, please visit SEDAR
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Corporate Collaborators

Avivagen offers its commercial partners scientifically backed, evidence-based products which are in high demand from multiple channels including veterinarians, farmers and producers, pet owners and retailers.

Avivagen maintains the highest manufacturing standards and is a proud member of the NASC, a self-regulating body, which protects and enhances the integrity of the animal health product industry.

Avivagen is actively collaborating with companies in Canada, the United States, Korea, Viet Nam, and Thailand, and we are seeking more relationships internationally.

Interested in becoming a collaborator?

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Forward-Looking Statements

This website includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with the business of Avivagen Inc. and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions “can”, “potentially”, “would”, anticipate”, “believe”, “estimate”, and similar expressions.

The forward-looking statements reflect the current expectations of Avivagen Inc. regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Avivagen assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.