Skin test company looking at long-term strategy

The Wetherby-based company told shareholders that the options include signing up long-term strategic partners and could include a takeover of the company.

Chairman Tom Bannatyne said: “The process remains ongoing, but the board is confident of a positive outcome in due course. The board will continue to keep shareholders updated on progress.”

The group said the contracts it won earlier this month have strengthened the company’s hand.

Evocutis won 10 new contracts worth a total of £280,000.

It said all the contracts are with well-known global consumer healthcare companies and will be delivered over a two to six-month period.

The contracts cover a variety of areas including the use of Evocutis’s patented LabSkin product, which emulates living skin tissue and can be used in research and product testing.

The contract values range from £9,000 for early exploratory research to £88,000 for larger scale product development analysis, and include early direct sales of LabSkin.

Evocutis said the new contracts mean the company is on course to meet management expectations.

Products to be tested include consumer health, cosmetics, and pharmaceuticals in the US, the UK and Europe.

LabSkin is made up of both dermal and epidermal layers. Studies have shown that its behaviour is closer to that of normal human skin than any other models.

Gwyn Humphreys, chief executive of Evocutis, said: “I am delighted that the uptake of LabSkin is increasing and that our clients – all of which are household names – are seeing a clear benefit over alternative skin models available either commercially or in-house.

“This is very positive in terms of future uptake of LabSkin and we are particularly pleased to see that our clients are using it successfully in their own laboratories.

“This validates our strategy of selling the product directly, as well as continuing to provide a full service offering to clients who require it.”

Evocutis said the contracts will boost its search for a strategic partner.