Pharmaceutical demand: Australian vs Indian

Hi fellow HC-ers, I am a long time follower of various stocks, but this my first posting

As Treetruth has pointed out there appears to be substantial supply of Australian sandalwood to be harvested (+20,000ha) that could offer an attractive substitute for Indian sandalwood should demand from the pharmaceutical sector take off (noting WITIJ's feedback regards quality of Australian sandalwood oil and suitability).

Back in 2013 smalldiamond posted a link to an interesting presentation by Viroxis regards the development of FDA regulated pharmaceuticals using Indian Sandalwood oil:

http://business.utsa.edu/cite/files/spring13/ViroXis CITE Feb 9 13 F .pdf

This highlights the challenge of gaining FDA approval for a new drug, with Viroxis identifying TFC as the only supplier able to meet regulator requirements (see slides 24, 25). Viroxis started in 2006 and it is still undertaking testing, and given the time and expense taken it would appear the risk of another company looking to use Australian sandalwood oil as a substitute for Indian sandalwood oil for FDA approved drugs appears remote.

And then we move onto OTC (i.e. non-prescription, whereas Viroxis is developing drugs that require a prescription), which is Galdermas interest via the Santalis supply agreement. The obvious scenario for substitution is that Galderma is overwhelmed by consumer demand as it releases products, forcing a shift to Australian sandalwood as TFC won't be able to produce substantial harvests before 2020. But surely such a scenario would mean Galderma still buys every drop of Indian sandlwood oil at $US4500/kg?  Competitors might look at Australian sandalwood given Galderma's lock over supply (again taking on board Viroxis management comments regards TFC as the only viable supplier) but that would have no impact on Indian sandalwood pricing.

So if we assume these products under development by Viroxis and Galderma find acceptance in worldwide skin care markets then the issue of Australian sandalwood oil being substituted for Indian sandalwood oil appears of little concern?