December 17, 2019


Avivagen signs memorandum of understanding with distribution agent in Asia-Pacific



Avivagen Inc. has entered into a memorandum of understanding with INPHILCO, Inc. setting out the terms under which the parties propose that INPHILCO will become a new, key distribution partner for OxC-betaTM Livestock in the rapidly growing Philippines market.


The new agreement will see INPHILCO sell Avivagen's OxC-beta™ Livestock non-antibiotic feed additive for swine and poultry to large integrated feed producers as a part of INPHILCO'S premix offerings and also as a standalone product and to commercial farms across the country.


This memorandum of understanding is a step toward negotiating a binding definitive agreement between Avivagen and INPHILCO, which the parties expect to negotiate and sign within the next 60 days.


"Avivagen has made exceptional inroads in the Philippines in 2019, and we are very excited to work with INPHILCO to bring OxC-betaTM Livestock to an even greater proportion of the rapidly growing marketplace in 2020 and beyond," said Kym Anthony, CEO of Avivagen.


"INPHILCO'S deep rooted relationships with both large integrated feed producers and commercial farms, along with its well-earned reputation for high quality feed premixes, provides an opportunity for OxC-betaTM Livestock use for both swine and poultry to grow in the Philippines over the coming years."


Along with working on the definitive distribution agreement with INPHILCO, Avivagen is also working to finalise rights to sell OxC-betaTM Livestock directly to Universal Robina Corporation, one of the Philippines' largest integrated livestock producers and branded consumer food and beverage producer based in Quezon City.


Universal Robina's Agro-Industrial and Commodity Food Groups (URC AIG) is a leading producer of pork and poultry in the Philippines. URC AIG is currently testing OxC-betaTM Livestock in its integrated-feed for use in its internal swine production operations.


Avivagen will also continue to work closely with established Philippines distribution partner UNAHCO to include OxC-betaTM Livestock in locally-produced premixes for both swine and poultry. UNAHCO has been a sizable distributor of OxC-betaTM Livestock in the Philippines and has been an important part of establishing the viability of the non-antibiotic feed additive in the country. UNAHCO will continue to use OxC-betaTM Livestock in its feed products, along with selling in premix form to larger customers across the Philippines.


"UNAHCO, INPHILCO and Universal Robina represent three of the most established and important players in the Philippines feed production and sales ecosystem. When signed, these important new agreements with Inphilco and Universal Robina will help OxC-betaTM Livestock reach an even greater segment of the Philippine feed market," Anthony added.


Avivagen expects growth within the Asia-Pacific market to accelerate in 2020 and beyond as new applications of OxC-betaTM are being utilised by a growing number of local partners, and as it pursues additional regulatory approvals in new jurisdictions. Avivagen recently secured approval for OxC-betaTM Livestock for specific applications in Taiwan, Mexico, Malaysia and the United States.


OxC-beta™ Livestock has the potential to eliminate the use of antibiotics as growth promoters in livestock feed, a problem requiring an urgent solution and which represents a multi hundred million dollar market opportunity worldwide. Once a definitive agreement is signed between INPHILCO and Avivagen, INPHILCO will be able to purchase OxC-betaTM directly from Avivagen, and will hold the exclusive rights to sell the product to large integrated feed producers as an ingredient in its premixes and in its standalone form.


The Philippines is a growing and important feed market, with an estimated annual feed production of 19 million tonnes for 2019, a substantial increase from 11.75 million tonnes in 2016. Swine and broiler poultry are the most important commercial livestock species in the country, for which the Philippines produces roughly the same amount of both pork and broiler poultry as Canada.


- Avivagen

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