aXichem and Iovate sign supply and research agreement for the nutrition market in the U.S and Canada, regarding development of new products containing aXivite

aXichem AB (publ) (“aXichem”), that develops and markets analogue industrial compounds, has signed a supply and research agreement with the leading, innovative active sports nutrition company Iovate Health Sciences International Inc. (“Iovate”). Under the terms of the agreement, aXichem and Iovate will collaborate in the areas of research, development and commercialization of products containing aXichem’s capsaicin analogue product, aXivite. aXivite may be used under different brands in the Iovate portfolio. aXichem estimates a wholesale value of this agreement with Iovate to amount to about 5 million USD distributed over the next three years.

“I am more than pleased that we have moved our collaboration with Iovate to the next level and entered into this exciting new supply and research agreement. Iovate is one of the world leaders in the area of nutrition and supplements. Putting aXivite’s excellent characteristics and qualities to work in the hands Iovate’s innovative team has so far proven to be a great experience. I am convinced that we will soon see the commercial results of this highly professional R&D work,” says Lucas Altepost, Vice President and Director of Sales and Marketing at aXichem.

“I am delighted to be able to continue this fruitful collaboration with aXichem. aXivite, being an analogue of capsaicin, has attributes with a potential to add great value in our range of weight management and sport nutrition products,” says Raza Bashir, Vice President, Scientific Affairs, Innovation & Procurement at Iovate.  

In June 2021, aXichem reported about the results of a randomized, double-blind, clinical trial of male and female subjects carried out at a research center in Ohio, USA, on aXichem’s phenylcapsaicin product aXivite. The trial proved that a low dose of aXivite has a significant effect in a decrease in % of body fat. Promising results were also shown in important blood bio-markers related to general gut health. The study was conducted to outline efficacy on the effects of phenylcapsaicin on weight loss and body composition.

According to marketresearch.com, the value of the U.S. weight loss market grew by about 24% to $72.6 billion in 2021, after having decreased during the pandemic in 2020. The market is forecast to grow 3.6% this year, to $75 billion.

About Iovate Health Science International Inc.

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.

This information is such that aXichem AB (publ) is obliged to publish in accordance with the EU Market Abuse Regulation. The information was submitted, through the care of the contact person, for publication on June 16, 2022, at 11:30 AM CEST.

Torsten Helsing, CEO, aXichem, Ph+46 70 686 33 55. Email: torsten.helsing@axichem.se

aXichem’s business idea is to develop, patent and market natural analogue industrial compounds. The Company primarily works with phenyl capsaicin a structural analogue of capsaicin with a wide range of applications, such as feed additives, nutrition and supplements, marine anti-fouling products and certain pharmaceutical areas. aXichem’s shares are listed on NASDAQ First North Growth Market under AXIC A. Certified Adviser: Redeye AB Certifiedadviser@redeye.se +46 (0)8 121 576 90. Read more about the company at www.axichem.se