The Huge Wool Market and FGF5(S), page-11

The matter of FGF5s as an inhibitor of FGF5, and its possible application to animals, arose in HC discussions in April 2015 when Kikkoman volunteered to manufacturer FGF5s for Cellmid free of charge. It has not been disclosed since whether their product is a significant factor in the active ingredient of the subsequently enhanced evolis brands, although the timing does fit.

One post explaining FGF5s functionality noted that Cellmid holds an exclusive licence with Kikkoman to use the FGF5s produced in its hair growth products. Another referred to a Japanese patent reporting excellent results for a related FGF5 inhibitor that was titled “Composition for inhibiting FGF-5, hair tonic and composition for external use on livestock”. The latter may have been Kikkoman’s main interest.

Considering that the evolis hair products require continuous daily application, with no result for months, the quantities required for effective external application to sheep herds would appear to be completely impractical. There might be a niche application involving smaller companion animals that could involve formulations similar to the evolis products, but it seems doubtful that the market size would warrant the required effort and expense.

The veterinary markets relating to animal health rather than animal grooming are massive and much higher margin, which is an obvious direction for eventual expansion involving the midkine technology. Currently the Zoetis diagnostic program is the Company’s only active involvement in this space.