aXichem AB (publ), that develops and markets natural analogue industrial compounds, has signed a Letter of Intent (LOI) with the Canadianbased company Iovate Health Sciences International Inc. (Iovate). The purpose of the LOI is to summarize the basic terms of an agreement regarding joint research, development and commercialization of a product for weight management, containing aXichem’s capsaicin analogue product, aXivite, as ingredient. The agreement also aims to provide Iovate with an exclusive license to sell the new product on the U.S. market.
Iovate is one of the world’s leading suppliers of products for weight management. Founded in 1995 and based in Oakville, Canada, Iovate is a dynamic, leading-edge nutritional company that delivers some of the highest quality, most innovative and effective active nutrition products in the world. With brand innovations like MuscleTech®, Six Star Pro Nutrition®, Purely Inspired® and Hydroxycut®, the company is committed to being the number one active nutrition and weight management supplement company in the world. Iovate distributes across all major channels of distribution, including food, drug, mass and club, health food stores and online, as well as in more than 130 countries worldwide. Iovate products are available nationwide in the US at GNC, the Vitamin Shoppe, Bodybuilding.com, Walmart, Target, Walgreen's, Sam's Club, Amazon.com and other fine retailers.
-I am very pleased with having entered into this LOI with Iovate and I look forward to collaborate with one of the world leaders in the area of nutrition and supplements – and not least in weight management products, an area where we expect aXivite to be an excellent fit. Under the signed LOI we will jointly develop and commercialize a product ingredient for weight management aimed for the U.S. market. The LOI is valid until 1 January 2021, but both parties are eager to get started and explore the potential that both of us see in aXivite, says Lucas Altepost, Vice President at aXichem.
-We are looking forward to collaborate with aXichem in bringing this new product ingredient to the market, with the goal to add another successful brand to our already strong portfolio and help people reach their weight loss goals. aXivite, being an analogue of capsaicin, has attributes that we feel provide it the potential to add significant value in our range of weight management products, says Raza Bashir, Vice President, Scientific Affairs, Innovation & Procurement at Iovate.
The U.S. market for weight management products amounted to about 66 billion USD in 2017 according ResearchAndMarkets.com. The global market for for weight management and weight control products is expected to reach over 442 billion USD year 2025, with a calculated average growth rate of about 8.2% for the period according to marketwatch.com.
This press release has been translated from Swedish. The Swedish text shall govern for all purposes and prevail in case of any discrepancy with the English version.