EnWave Secures Milestone Joint Development Agreement with GEA Lyophil to Advance REV Processing in Pharmaceutical Sector
While some new agreements that EnWave Corporation (CA:ENW – $1.60 & US:NWVCF – $1.23 & GER:E4U – €1.09) has achieved in recent years were arranged remarkably quickly, others require years of work to bring to fruition. The process is worthwhile nonetheless, as each new agreement contributes longer term growth potential.
The evolution has been underway for several years to adapt EnWave’s revolutionary Radiant Energy Vacuum (REV) technology to enable rapid freeze-drying applications for the pharmaceutical sector. Ideally, PharmaREV machines are suited for rapid dehydration of live and active organisms. The process is faster and operates at lower cost than other available technologies. This promise for increased efficiency prompted Merck to install a 9kW REV machine at its facility in Pennsylvania in September 2018.
Prior to that deal, EnWave had also signed a marketing initiative in July, with GEA Lyophil GmbH. Based in Germany, GEA is considered among the leaders in the design and manufacturing of freeze-drying units for biotech and pharmaceutical companies. The arrangement was therefore strategic to participate in the upstream side of the business, directly with a trusted supplier of the machinery.
This week, EnWave reported the alliance has advanced to a Joint Development Agreement (JDA) with GEA, and the signing of a technology license deal. This collaboration is expected to accelerate the development of REV technology for pharmaceutical applications.
Pathway to Enhance Technology Development
Meanwhile, the relationship with GEA provides additional benefits. The JDA enables EnWave to focus on other initiatives while R&D work advances for PharmaREV. Another appealing aspect to this relationship is that GEA contributes proprietary intellectual property. As a specialist in manufacturing processing equipment to the pharmaceutical sector, GEA is the ideal partner to advance this application for REV technology.
The deal effectively reduces commitment of time and money by EnWave in order to complete development for the PharmaREV process. By securing the leadership advantage with a global supplier and manufacturer, EnWave is leveraging the expertise and technology of its partner to achieve the final development. And the arrangement is even more attractive given that GEA is bearing the development costs.
The cooperation between GEA and EnWave may enable Merck in the future to conduct clinical trials for several vaccines. The objective to secure commercial production of a pharmaceutical application for Merck creates opportunities for EnWave and could lead to a breakthrough in the lucrative pharmaceutical space.
Commercial Agreement in Colombia
In other news, EnWave signed a royalty-bearing commercial license with Pacifico Snacks S.A.S, which is a woman-owned and operated business that produces natural snacks for specialty food retailers. The company specializes in private-label production of high-quality, desirable, and innovative plantain and cassava chips that delight its consumers and impact the bottom line of major retailers.
Thanks to the agreement, Pacifico Snacks has the exclusive right to produce certain types of mango, pineapple and banana products within Colombia. This new offering will further enhance Pacifico’s reputation as a leading private-label supplier to major North American grocers.
Pacifico Snacks immediately purchased a 10kW commercial Radiant Energy Vacuum machine to initiate commercial production in Colombia. Moreover, Pacifico must pay a royalty to EnWave on all production and must order additional REV machines in order to maintain its exclusive rights.
This License is the first signed by EnWave in Colombia and the 38th worldwide.
The incredible growth and successful commercialization for REV technology has been assisted by the strategy to build alliances with leading companies in each sector. Once a respected, high-profile player in any sector has embraced REV technology and established a partnership, it often inspires other companies in that sector to follow suit. GEA is established as global supplier of specialized machinery for the pharmaceutical and food industries.
It should also be noted that as a respected and trusted supplier in this sector, the implied validation of EnWave and REV technology is once again demonstrated. When the most advanced technology is required and strict quality control is demanded for an entire sector, it is a statement of confidence that the established manufacturer of this high-end equipment has chosen to partner with EnWave.
This new partnership deal is a milestone for the Company. It will advance development of proprietary technology that can open another sector for future sales growth. The steady accomplishment to achieve new applications for REV processing, and secure new partnership opportunities, has contributed to establish EnWave as one of the fastest growing technology companies in Canada.
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