Phylogica wins cosmetics deal for peptides

Phylogica (ASX:PYC) is continuing its push into the cosmetics market with a deal to license a phylomer peptide with skin repair potential to US-based luxury beauty product company Le Métier de Beauté.

Le Métier de Beauté will use Phylogica's PYC35 peptide in a range of anti-aging creams. The deal covers the US, UK and Hong Kong markets, with the creams due to be initially commercialised in the US.

Phylogica will be entitled to a royalty on all sales of Le Métier cosmetic products including PYC35. As the licensing agreement is non-exclusive, Phylogica is free to seek more cosmetic industry licensees for the peptide.

PYC35 is derived from the genome of Pyrococcus horikoshii, a micro-organism inhabiting undersea volcanic vents.

According to Phylogica CEO Dr Paul Watt, it is the ability of the organisms to withstand the extreme pressures and temperatures of its habitat that gives PYC35 its skin repair potential.

“It is intriguing that a peptide derived from that organism’s genome has potential in repairing burn injuries and preventing long-term skin damage such as scars,” he said.

PYC35 has shown skin-repair activity in preclinical models of dermal wounds, UV radiation damage and severe skin burns. This gives the peptide cosmetic applications in repairing skin following sunburn or long-term UV exposure.

Watt said that while Phylogica's long-term focus remains its core drug discovery programs, “this cosmetics deal opens up a new market opportunity and could generate meaningful near-term revenue for Phylogica.”

Phylogica is currently involved in a collaboration with Pfizer to develop peptide based vaccines from the phylomer platform, and has been racking up milestone payments from the up to US$134.5 million ($128.6 million) deal.

Watt said Phylogica expects to announce new drug discovery alliances “in the coming months.”

Phylogica (ASX:PYC) shares climbed to a high of $0.035 after the deal was announced on Wednesday. As of 3:30pm, the shares were trading 16% higher at $0.029.