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The Company's commercial products contain a special, proprietary strain of Lactobacillus fermentum, trademarked PCC®.
These products are listed on the Australian Register of Therapeutic Goods. proTract® is a family of products which were available exclusively through Australian pharmacies as OTC products.
Negotiations are underway for new distribution opportunities.
• proTract® for Intestinal Health.
• proTract® IBS - for relief of symptoms of medically diagnosed Irritable Bowel Syndrome.
• proTract® for Atopic Dermatitis for infants and children.
The Company also produces a practitioner-only product, Progastrim®, sold to Australian naturopaths, to help stabilise and maintain an optimal intestinal flora , and which has been shown in clinical studies to assist in the management of gastrointestinal disturbances, including diarrhoea.
MARKET POTENTIAL
The Company's probiotic products address significant markets. Firstly, they are relevant to the rapidly growing Wellness Industry - projected to become the next trillion dollar industry by 2010, fuelled by an aging population seeking products to maintain health and well being. There is evidence that the Company's proprietary probiotic PCC® maintains intestinal health by inhibiting harmful micro-organisms, restoring a healthy balance of friendly bacteria, and boosting the immune system.
In addition, PCC® relieves symptoms of gastrointestinal disorders which are triggered by underlying pathogenic organisms. Thus the products are applicable to the gastrointestinal therapeutic market, which was estimated at USD$26-28 billion in 1999, second only to the cardiovascular market (Scrips Report, 2000). The U.S. market for OTC gastrointestinal products was projected to reach $3.9 Billion by 2006, according to a 2001 study by Kalorama Information.
Probiotics market
Probiotics as food ingredients or dietary supplements have significant markets:
The global market for probiotic products is USD$5.8 billion (Health Strategy Consulting, 2003).
The total US probiotics market was forecast to grow to USD $400M by 2010. (Frost & Sullivan, 2003).
Nutrition Business Journal projects a saturation market value of approximately $1.2 billion for probiotic supplements in the US.
Probiotic and functional dairy is the leading sector in the functional foods market of Japan, Finland, Switzerland and Belgium (Euromonitor, 2000).
Irritable Bowel Syndrome (IBS) Market
IBS is a common and significant disorder:
Up to 20% of the adult population in Australia and the US suffer from symptoms of IBS (bloating, intermittent episodes of diarrhoea and/or constipation, abdominal pain). It is commonly diagnosed based on a set of clinical criteria called the Rome Criteria.
IBS accounts for 2.4-3.5 million physician visits and 2.2 million medical prescriptions in the US annually.
The number of diagnosed cases of IBS was forecast to reach 19.4 million in 2000 (Decision Resources, 2001).
The economic impact of IBS is estimated at $25 billion annually through direct costs of health care use and indirect costs of absenteeism from work (American Gastro Association).
Forecast sales for IBS therapies in development (cilanestron, renzapride and tergaserod) are expected to be at least USD$250 million per agent (Decision Resources, 2001).
The IBS market, which only recently has seen the advent of IBS-specific therapies, is forecast to grow at an average rate of 31% over the next five years, according to a report from PharmaBusiness Daily in 2003.
Atopic Dermatitis Market
Atopic dermatitis is a chronic inflammatory condition characterized by dry, itchy skin.
The incidence of atopic dermatitis has risen dramatically in the last 30 years.
Atopic dermatitis affects 25% of the world’s population, including 10% to 30% of all infants and children. 3
Atopic dermatitis actively affects 7% to 17% of schoolchildren.
It is estimated that in any one year, 2.2% of the Western world’s population suffers from atopic dermatitis.
Approximately 80% of paediatric cases develop by 1 year, and 95% of all cases are apparent by 5 years.
Atopic dermatitis is believed to have more financial and emotional impact on families than diabetes (Su et al, 1997). The direct costs to the family include medications, dressings, diet, naturopathy, and average $A818 for moderate and $A1,255 for severe atopic dermatitis. In addition there is a significant emotional burden involved in applying creams, wrapping the infant in bandages to stop itching and scratching, and seeing the infant appearing distressed.
There is considerable dissatisfaction with current treatments.
Thus Probiomics Ltd's products address significant markets with largely unmet needs.
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