aXichem AB (publ), that develops and markets natural analogue industrial chemicals, announces that the company has entered into a production collaboration with the Swedish unit of an established, major manufacturer of chemical substances. The collaboration concerns the manufacture of aXichem's raw material phenylcapsaicin. With the new production collaboration further capacity is secured to support the planned demand for aXichem's product in the area of ​​poultry feed, estimated to take off in connection with a Feed Additive approval from the European Food Safety Authority (EFSA) and the corresponding approval in Brazil.

“Together with our distributor Chr.Olesen, we are now working on the preparatory launch of aXiphen in Europe and Brazil. We have ongoing dialogue with several producers of poultry feed, and interest in the product continues to be high. aXichem therefore assesses that sales of approximately SEK 60–80 million are possible during the first 12–18 months after market approval in the EU and in Brazil,” says Torsten Helsing, CEO of aXichem.

According to a new report, "Europe Poultry Feed Market - Growth, Trends, Covid-19 impact and forecast 2023 - 2028", published by Morder Intelligence and based on data from, among others, the European Feed Manufacturers Federation (FEFAC), the poultry feed market in Europe is valued to approximately 30 billion Euros. The market is estimated to show an annual growth of around 4%.

About phenylcapsaicin and aXiphen
The health benefits of chili, with its active ingredient capsaicin have been known for centuries. aXichem’s proprietary molecule, phenylcapsaicin, combines the naturally occurring phenyl group with capsaicin, bridged by a triple bond. The result is an innovative natural analogue capsaicin with high purity, where the pungency is greatly reduced.
Studies have proven the effectiveness of aXiphen^® as an ingredient in poultry feed.

A study on on-floor salmonella prevalence, following the inclusion of 15 ppm phenylcapsaicin in a regular starter diet, was carried out in a full-scale commercial broiler production trial under farming conditions. The study comprised 18 broiler farms with 57 broiler chicken houses and 1 659 540 broiler chickens. The study concluded that under the conditions of the study, the inclusion of 15 ppm phenylcapsaicin in broiler chicken feed statistically significantly reduced both the number of farms and the number of houses with salmonella-positive floor boot swabs. The European model for production efficiency, EPEF, showed that breeding efficiency increased by 14% compared to traditional feeding.

This information is such that aXichem AB is obliged to publish in accordance with the EU Market Abuse Regulation. The information was submitted, through the care of the contact person below, for publication on 7 February 2023, at 08:30 AM CET.