Avivagen’s Unique Opportunity

Investor Information (VIV)  (cached 15 min)
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Avivagen’s discovery of the β-carotene-oxygen copolymer compounds, in combination with their associated flavour-imparting breakdown compounds, together with their role in providing benefits not related to β-carotene being a source of vitamin A, unlocks access to an overlooked but important aspect of β-carotene biology. Commercially the copolymer compounds are readily produced in high concentration, reliably and consistently, by full oxidation of pure β-carotene (OxBC) conducted according to FAMI-QS standards (European Feed Additives and Premixtures Quality System). The presence of the β-carotene copolymer compounds in OxBC formulated OxC-beta™ products makes them unlike any other animal health products.  Avivagen, as the discoverer of the β-carotene copolymer compounds, is the sole provider of this first-in-class technology that unequivocally and safely helps support and maintain immune function and, thereby, the overall health of animals.

OxC-beta: Improving Health by Enhancing Immune Defences

The OxC-beta™ product lines provide major, global opportunities to help support promotion and maintenance of animal and human immune function.

In livestock, clear, consistent benefits, complementary to and beyond that of vitamin A, have been obtained with just very small amounts of OxBC contained in OxC-beta™ Livestock added to feed (e.g., mg per kg, or parts-per-million), The benefits are seen across multiple animal species under various conditions in different countries. This broad-ranging observation suggests that OxBC is meeting an unfilled dietary need. This need may once have been met with traditional diets containing β-carotene-rich forage materials but now their absence in most modern livestock feeds eliminates the possible presence of oxidized β-carotene compounds.

In dogs the OxBC in Vivamune Health Chews and Dr Tobias All-in-One Dog Chews 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 following points support the safety of this class of compound:

• The natural occurrence and dietary consumption for millennia of the β-carotene copolymer and their breakdown compounds in β-carotene-containing foods and animal feed forages;

• The absence of adverse effects in the use of OxC-beta products in:
   o Livestock trials and in canine supplements;
   o Targeted animal safety studies

By helping to support and maintain immune function the OxC-beta™ Livestock premix product presents a major opportunity to become a compelling non-antibiotic 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 mode 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 helps maintain health and productivity across species with overall  performance comparable to antibiotics used for this purpose.

OxC-beta™ Livestock as a non-antibiotic alternative supports 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. The product 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 (i.e., mg per kg feed), , and, furthermore, has superior handling characteristics.

OxC-beta™ Livestock 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 manufactured at commercial scale to FAMI-QS standards and is currently available for sale in the United States, Philippines, Taiwan, New Zealand, Thailand, Australia and Malaysia

Companion Animals 

OxC-beta products have demonstrated broad utility in providing benefits, particularly to canine companion animals. Avivagen markets Vivamune™ Health Chews to pet owners in retail settings and veterinary clinics, whereas, Dr Tobias All-in-One Dog chews are marketed to online customers primarily through Amazon.com and also DrTobias.com.

The Dr Tobias All-in-One Dog chews, taken in a once-daily chewable format, support 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 launching Dr Tobias All-in-One Dog Chews in the U.S., Avivagen entered into a joint venture agreement with Mimi’s Rock Corp., an online dietary supplement and wellness company which operates the Dr Tobias, All Natural Advice and Maritime Naturals brands. Mimi’s Rock Corp. has rapid growth plans as it continues to expand into global markets, including Dr Tobias All-in-One Dog Chews.

“We’ve been working closely with the Avivagen team to launch the first Dr Tobias branded product into the companion pet market in the United States. With an ever-expanding companion pet market, we believe that our existing Dr Tobias customers will embrace the opportunity to provide the same high standards in supplements and vitamins to their dogs,” said Dave Kohler, CEO of Mimi’s Rock Corp.

“We’re very excited to bring our high quality supplement for companion animals to this important and growing $10 billion per year market,” says Kym Anthony, Chief Executive Officer, Avivagen Inc. “We believe the combination of Avivagen’s OxC-betaTM technology with Mimi’s Rock’s expertise in online sales and customer service is a win-win scenario for both enterprises, and look forward to building upon this partnership.”

 

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
 
 

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
David Bautz Zack’s Small Cap Research (312) 265-9474

 

 

Financial Reports

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

 

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.