PeptiGelDesign Limited provides formulated ready-to-use and easy-to-handle hydrogels for culture dishes, multi-well plates, or cell culture inserts, used in research laboratories. PeptigelDesign believe the research services market is large and growing, estimating it to be worth c.$20bn on a global basis with the subsector of cell culture products and consumables worth c.$2.0bn. The Company’s hydrogels are considered an improvement to existing liquid-based cell culture products, the latter which generates revenues of c.$1.0bn. They are a better product in that they allow the substrate to remain in a 3-dimentional matrix, thus increasing yields and facilitating better research results.
The Company commenced marketing its hydrogels in September 2015 to research organisations and has secured 8 clients to date, who have opened or in the process of opening accounts and placing first orders. In terms of workgroups, these 8 clients represent 50+ potential customers with an estimated annual purchase requirement of over £500k per annum. The Company has also won a £50,000 award in the Czech Republic to provide hydrogels and services over a 30 month period commencing in January 2015.
The Company is also in advance negotiations for a UK (and potentially a global) distribution agreement with a major global distributor to sell and market its products. At the present time, such an agreement has yet to be signed.
The identified market for the Company’s hydrogel scaffolds is c.£1bn per annum with 17,000 potential research users delivering target revenues for the Company of £13.5m per annum in Year 6.