Australia-based Bioxyne has secured a two-year distribution agreement in south-east Asia for its dairy formula products.
The Sydney-listed firm, which manufactures probiotic health products, branched out into dairy formula in December after gaining a direct sales licence in Malaysia in October, and now counts A2 Milk Co, Bellamy’s Australia, Wattle Health and Bubs Australia among its competitors.
ASVA International in Malaysia has been appointed as Bioxyne’s regional distributor for Thailand, the Philippines, Myanmar, Cambodia and Mauritius, according to a stock exchange announcement today (21 May). Under the agreement, ASVA will be excluded from selling competing products and has just taken its first order valued at US$200,000.
Under the terms of the agreement, Bioxyne has entered into a call option that gives the company the right to acquire a 70% interest in the business in each of those countries before 1 July 2021, based on an “agreed multiple of EBITDA”.
Using ingredients sourced in New Zealand and Australia, Bioxyne makes brands such as Mustang, a nutritional shake for men, BK18, a family breakfast replacement, and Myanmar, a colostrum and honey-based dairy formula. Its New Zealand subsidiary operates as Bioxyne International.
Valued at a market capitalization of AUD57.6m (US$43.3m) as of February, the company generated annual sales of AUD2m. Bioxyne, which was incorporated in 2000, is led by chief executive NH Chua, with Tony Ho as non-executive chairman and Guy Robertson as chief financial officer.
This initiative will give Bioxyne immediate access for its products to a number of growing markets in the Asian region through established direct sales channels. This will allow the company to focus on developing Malaysia, where it has a direct selling license, and to work on other key markets in Asia.
Bioxyne says its probiotic business is supported by a manufacturing and distribution agreement with Chr. Hansen in Denmark, a global leader in natural food additives and supplements products for the food, health, and pharmaceutical and agriculture industries.