Neoceuticals aims for China breakthrough

Dr Andrew Brodrick told the Yorkshire Post the plan was to double the North Yorkshire-based company’s turnover within three years. It is estimated to reach just under £1m by the end of December. He said he hopes pre-tax profits will exceed last year’s £250,000.

Neoceuticals develops paediatric, specialist nutritional and niche products for the healthcare market, primarily in the UK.

The company has its sights firmly set on the Chinese market in relation to its NeoKay Vitamin K capsules. Neoceuticals gained UK approval earlier this year for the launch of the product, which is used to prevent bleeding in newborn babies due to a deficiency in Vitamin K. Around 15m babies are born in China each year, compared to 750,000 in the UK, and the incidence of Vitamin K deficiency in newborns is nearly four times greater than in the UK.

Professor Hui Fen Zhang, who heads up the paediatric department at the University Hospital, Hebei, was introduced to Neoceuticals through Dr Martin Shearer, honorary consultant scientist at Guy’s & St Thomas’ Hospital, one of the world’s leading experts in Vitamin K.

The incidence of Vitamin K deficiency in China is high “for potentially ethnic/genetic reasons and dietary reasons”, said Dr Brodrick, who added: “They eat an awful lot of rice and not much green veg.”

He explained: “We have an agreement in principle for them to develop our product over in China. We are not sure at this stage whether they will want to manufacture locally or take our UK product in as an import.”

The target is to be supplying China with the product within 12-18 months.

Neoceuticals previously struck a £1m export deal into Russia and the Commonwealth of Independent States (CIS), to supply its NeoKay capsule.

It has also signed an agreement with Lyomark Pharma in Germany that gives them worldwide rights to NeoKay. Lyomark has trading partners in 200 countries and this offers the fastest route to a global market for NeoKay.

However, the agreement is non exclusive allowing Neoceuticals to also establish its own network of agents. Lyomark is looking to fast track a German licence for NeoKay, based on the IP and data that it submitted to successfully obtain its UK licence. German approval is expected within 6-12 months.

Meanwhile, the company has also developed a supplement for cancer patients that is currently being assessed for UK approval.

Dr Brodrick said: “We are in the process of licensing a second product which is in the area of oncology, and Lyomark also has products in that area of medicine.

“So it makes good co-marketing sense for them and us to collaborate as their sales/detailing team can simply add our product to that range.”

He added: “I think the major growth of the company will be in the overseas market with our Vitamin K and with the new product [aimed at cancer patients] because that has a much wider audience.”

Every aspect of the business is contracted out. Asked whether there are plans to take on staff, Dr Brodrick said: “That may well be a decision taken after my day.” He said he expects the company will be sold within three to five years.

Creating companies

SERIAL entrepreneur Andrew Brodrick was an NHS pharmacist before establishing his first company.

He founded Bio-Medical Services Limited in 1982 and then BMS Laboratories Limited in 1988. He sold BMS Laboratories to Dr Reddy’s in 2002, before starting medical devices company, CD Medical, in 2004. It was later sold. He founded Neoceuticals in 2006, and his friend Dr Rod Adams bought half the shares in the company a year later.

They invested jointly about £250,000 in the business. They are both shareholders, along with their family members.