Comvita Creates Skincare Buzz
Paengaroa-based company Comvita has used its Manuka honey expertise to develop a natural skincare range.

Huni aims to increase sales from existing Comvita customers and attract new customers to the brand.

The UMF® 20+ Manuka honey used in the Huni skincare range was supplied by Comvita beekeepers in New Zealand’s North Island.

UMF® (Unique Manuka Factor) is a scientific measure of the antibacterial levels found in active Manuka honey. This type of honey was chosen because it is the purest, most sustainable type of active honey available and is known for its moisturising properties.

“We wanted to offer women a natural skincare range that utilises the strong natural benefits of UMF® Manuka honey to minimise the first visible signs of aging,” said Comvita general manager skincare Leigh Kite.

Huni is not just good for your skin, but good for the environment too. The natural ingredients we use are from sustainable sources and free from parabens, sodium lauryl sulphate detergents and genetically-modified plant materials.

View the new Huni Range.

ENDS

News Release
16 October 2007

Comvita confirmed today that its partner in the US, Derma Sciences, has successfully launched its new range of Honey based wound dressings. Derma Sciences launched the Medihoney® brand, under a global brand co-operation agreement with license owner Comvita.

The dressings were launched at the Clinical Symposium on Advances in Skin and Wound Care (CSASWC) based in Nashville, Tennessee. According to Derma Sciences Vice President of Marketing Barry Wolfenson the dressings were received very positively at the symposium, with strong interest from Woundcare specialists. Mr Wolfenson also added “Derma Sciences was very satisfied with the response from distributors placing orders in the lead-up to the show, and attendee response was very positive. We are excited about the future market opportunities this launch creates for our company.”

After advising the NZX on the 23rd of July this year that FDA clearance had been obtained for the honey-based wound dressings, Comvita CEO Brett Hewlett was impressed with the speed at which US partner Derma Sciences has been able to bring the product to market, less than 2 months after receiving market approval. Comvita has a 14 per cent stake (10 per cent fully diluted) in publicly owned Derma Sciences (code DSCI), a marketer of advanced wound care products. “This is a significant moment in Comvita’s development says Hewlett, and is the end result of years of hard work. It also paves the way for a global platform of new products based on medical honey to be launched under the Medihoney® brand .”

Much data has been published on the use of medical grade Leptospermum honey (Manuka Honey) as a topical antimicrobial, including its activity against methicillin-resistant Staphylococcus aureus (MRSA). Results from a large-scale randomized controlled study conducted at Sligo Hospital in Ireland, were presented at the symposium by Georgina Gethin. The study demonstrated improved healing and infection control rates - including reductions in MRSA - along with effective debridement of necrotic tissue. This study will be published in late 2007.

In another clinical study Robert G. Frykberg DPM, MP Chief of Podiatric Medicine and Surgery at the Carl T. Hayden Veterans Affairs Medical Center in Phoenix, presented a case series of Medihoney dressing in several patients with diabetic ulcers. Results were positive wound healing outcomes, and bioburden control even against such drug resistant pathogens as MRSA. In addition to authoring numerous scientific manuscripts, Dr. Frykberg has edited two of the most widely circulated textbooks on the subject of Diabetic Foot Care. The importance of podiatry to the woundcare market is significant with leg ulcers and diabetic foot ulcers making up a significant percentage of the total market for advanced wound care. There are at least 16 million people with diabetes in the United States. Fifteen percent of all patients with diabetes may be expected to develop foot ulcers during their lifetimes. Persons with diabetes have an increased risk of developing infections which are reported to have a treatment cost of US 17,000 to 18,000 dollars per ulcer and are a major cause of lower-limb amputation.

Major news outlets in the US have told the story of Medihoney products being used in Iraq by US military personnel. KFYR TV News series refers to it as a “Sweet Medical Breakthrough” while the LA Times called it a “Cheap fix in a War zone.” US Military personnel have been using Medihoney® to treat a range of burns incurred amongst Iraqi children in a children’s burn clinic. The treatment has been an outstanding success according to clinicians, and this has been widely reported in the United States.

This follows a further exciting publication in the US market about Medihoney. The current issue of the US Journal “Wounds” has published a feature article on a study using Medihoney last month. Wounds journal reported that “research results thus far are extremely encouraging, and demonstrate that honey is effective against a broad range of microorganisms, including multi drug resistant strains. This in-vitro study complements the work of others and focuses on the impact that a standardized honey can have on multi drug resistant bacteria that are regularly found in wounds and are responsible for increased morbidity.”
ENDS

News Release
29 August 2007

Comvita announced today (29 August) that it has entered into an agreement to purchase the assets (including shares, real estate and intellectual property) and business of Olive Products Australia Pty Limited (OPA). The base purchase price is A$20.0 million (plus A$0.7 million working capital) with up to A$6 million in additional earnout provided certain growth targets are met in two years. Of the total A$26 million, A$5.2 million will be in the form of Comvita shares. The purchase is subject to shareholder approval, final due diligence and finance.

OPA is a vertically integrated business founded by Australian Natural Health enthusiast, Ray Archer. The acquisition includes a super-intensive 500,000 olive tree grove of scientifically selected olive leaf varieties on a 400 acre plantation. These trees have been carefully chosen by the Archers over many years of research to maximise the production of their therapeutically active compounds.

OPA is a superb business say’s Comvita's CEO Brett Hewlett. “The company has shown compound annual growth of more than 50% over the past 5 years and is very profitable. The acquisition was made through a non-contestable process. The Archers felt that Comvita was the right party to take the business forward and grow it internationally using Comvita’s access to key markets throughout Asia and Europe”.

Comvita’s strategy has been very consistent states Hewlett. "We have focused our acquisitions on building our leadership position in woundcare, securing distribution strength in Europe and Asia and now OPA is a major step to obtaining diversification in our supply base, a stated strategic goal for Comvita. Comvita has established a stable and highly scalable platform to support strong growth over the coming years. We have made a number of acquisitions in a relatively short space of time. However, they are the culmination of nearly two years of work by the Executive team and the Board, and match the strategy we laid out when we set about taking Comvita to the next level."

We believe the acquisition of OPA is in the best interests of Comvita and should bring significant benefits to the business for the following reasons;

1. Olive leaf extract will form the basis of a significant ingredient platform for Comvita and is complimentary to Comvita’s existing product range. The products have exciting potential and are aligned with Comvita’s current health solution categories. It creates diversification of Comvita’s supply base with a unique raw material. This is in line with Comvita’s planned strategic move to reduce dependency on ‘bee’ based products.

2. The acquisition enables Comvita to utilise its established brand and distribution channels in the key markets of UK, Hong Kong, New Zealand and Australia, to grow the sales and profitability of OPA – currently the existing business is predominantly domestically focused. OPA’s business operation is sustainable and importantly, scalable to meet Comvita’s growth expectations.

3. This acquisition is earnings accretive for all shareholders inclusive of the additional equity raised. Pro-forma net profit projections for the combined business shows strong growth.

Fresh olive leaf is one of the most exciting natural products to emerge over the past few years according to Comvita Technical General Manager, Dr Ralph Schlothauer. “There is a lot of interest in one of the key active compounds, Oleuropein. OPA has taken the production of extract a step further with a focus on producing a wider range of actives directly from fresh leaf. In Australia the Therapeutic Goods Administration has approved a heart health claim. Furthermore, a number of anecdotal reports from consumers indicate they are getting relief for joint pain and arthritis after they have taken OPA's products. This has now been backed up by a 90 patient clinical study recently completed in the United States showing positive effects on osteoarthritis and rheumatoid arthritis(1)”.

Traditionally olive leaf extracts are known to also have potential antimicrobial and antiviral properties and are becoming popular as cough and cold remedies.

(1) Source: Nutrition Research (Elsevier)
August 2007, Volume 27, Issue 8, Pages 470-477
"Olive extract supplement decreases pain and improves daily activities in adults with osteoarthritis and decreases plasma homocysteine in those with rheumatoid arthritis"
Authors: C.M. Bitler, K. Matt, M. Irving, G. Hook, J. Yusen, F. Eagar, K. Kirschner, B. Walker and R. Crea