The Jenex Corporation

At Jenex, we believe everyone is entitled to clear, healthy skin. Skin that’s free from cold sores, acne and wrinkles. Our goal is to provide consumers with professional quality dermatological products that help attain a healthy and youthful appearance, without having to resort to costly invasive procedures.

Overview

 

The Jenex Corporation is a public company trading on the TSX Venture Exchange (TSX-V: JEN) and Frankfurt Stock Exchange (TSX-V: JNX) that holds the patents, trademarks and regulatory approvals for its thermal therapy technology.

Jenex is focused on helping people attain a healthful and youthful appearance. Our core philosophy is that clear and healthy skin should not be a privilege for only those who can afford costly procedures and treatments. Our breakthrough proprietary thermal therapy technology uses heat and light energy to deliver effective, non-invasive and pain free skin care that was previously available only through professional treatments.

With over $6.5 million invested in intellectual property and research and development, our product line addresses various conditions and improvements including cold sores, acne, and facial wrinkles. We currently have several products under development ranging from reformulations of existing products to new products which utilize our unique light and thermal therapy technology.

We plan to build the business by executing a four part growth strategy- redesigning and promoting existing brands (Intercept CS), developing new products- acne and wrinkle care which use our proven proprietary technology, entering into strategic collaborations, and acquiring complimentary products and businesses. We will be focusing on the $21 billion “cosmeceutical “industry which not only beautifies but prevents/treats skincare conditions and concerns.

 

Background

Founded in 2000, the company gained recognition through its cold sore prevention system, Intercept CS; the only approved product specifically for the prevention of cold sores. The company secured patents in Europe, United States, Canada and Australia to protect the technology.  In 2006, the company launched Intercept Cs with Shoppers Drug Mart/Pharmaprix, Canada’s largest retail drugstore chain. In addition to Intercept CS, Jenex also owns patents for its Therapik™ device, designed to relieve pain and itching associated with insect bites and stings. Therapik is approved in Canada and the United States as a Class II medical device and has CE approval for Europe. It is currently sold through a number of retailers across Canada, the United States and Europe including the Mountain Equipment Co-Op, Walmart, and Lee Valley Tools.

Market

 

The skincare market is undergoing rapid growth fueled by an aging population, advances in skin care, and the convergence of pharmaceutical and cosmetics products - “cosmeceuticals”. Like cosmetics, cosmeceuticals are topically applied, but they contain ingredients that influence the biological function of the skin. Dermatological research suggests that the bioactive ingredients used in cosmeceuticals have benefits beyond the traditional cosmetics and thus provide protection, prevention and regeneration that

surpass traditional cosmetics.  Cosmeceuticals are presently the fastest-growing segment of the natural personal care industry.

According to CosmeticDesign.com, the Packaged Facts Report states that the overall skincare market is expected to increase by leaps and bounds in the future. The company states that it will reach $115.5 billion by 2010, with anti-aging products continuing to act as industry leader with an annual growth rate of 11.3%, which is among the highest growth grates for the skincare industry as a whole.

Today, as the demand increases for effective skin care treatments, consumers will continue to educate themselves in the selection of products and alternatives to expensive procedures offering similar results. Botox, facial lasers and many surgical procedures are expensive options that will be used with less frequency. Products that help people feel better and provide actual skin repair from the comfort of their home will become the focus of the anti-aging skincare industry.

Jenex occupies a unique market position. Its products tap into this new approach to skin care, combining clinically proven and scientifically endorsed technology with a cost-effective and efficient delivery method to treat a variety of skin conditions, offering an alternative to invasive procedures.

Market Summary

According to various studies, the global skin care market is predicted to be worth anywhere from $44.8¹ billion to $115 billion² by 2010, driven by an aging population, growing consumer affluence and the increasing importance of the emerging markets. Although the US, Japan and Western European countries are currently the largest markets, the emerging markets are expected to lead future growth.

Anti-aging products will continue to act as an industry leader with an annual growth rate of 11.3% being expected by 2010- which is among the highest growth rates for the skincare industry as a whole. In 2007, 75% of skin care products sales were attributable to Europe, Asia-Pacific and the US, however future growth will be driven by the Asia-Pacific countries. China is the giant of the region and is predicted to account for 32 per cent of regional sales by 2010. Brazil is highlighted as the strong player in the Latin America region.

1.     Global Industry Analysts

2.     Packaged Facts Report

Demand for cosmeceuticals in the US will increase 7.4 percent annually through 2012, driven by an aging population seeking to maintain the appearance of youth. Injectables and skin care products will register the fastest growth. According to the American Society for Aesthetic Plastic Surgery, nearly 11.7 million cosmetic surgical and non-surgical procedures

were performed in the U.S in 2007, including approximately 9.6 million non-medical cosmetic procedures. In Canada, the skin care market represents $1.3 billion.

The total market for anti acne treatments is expected to reach over $3 billion by 2013, representing a patient population in the hundreds of millions.

Current medical research indicates that 20 to 40% of the population experience recurrent cold sore outbreaks.  In the Canadian market alone, that figure translates from 5 million to as many as 10 million people who suffer recurrent bouts of cold sores.  In the United States these estimates translate to between 40 million and 80 million recurrent cold sore sufferers.

Emerging Trends

Increasingly consumers are looking for products that serve multiple functions such as protection, prevention and regeneration. Tied in to this are two important emerging trends for natural products and the move towards increasingly sophisticated treatments that play on medical and scientific claims. Worldwide economic woes will ensure that consumers will educate themselves when choosing products and solutions. While sales for expensive procedures has continued to grow, products that help people feel better and provide actual skin repair from the comfort of their home will become the focus of the skincare industry, compared to expensive options like Botox, facial lasers and many surgical procedures. People want to see improvement in their skin, without a large expense.

Jenex is well-positioned to take advantage of these trends by offering safe, cost-effective products for a variety of skin conditions as an alternative to expensive, invasive procedures.

Breakthrough Technology

 

Our breakthrough technology uses a combination of heat and light therapies to prevent cold sores, treat acne and slow the aging process. It is non-invasive, all natural and can be administered by any individual in the comfort of their home.

Our Class 1 device combines three systems; red and infrared light which allows for deep penetration, a septic system that uses short wave light emission as an antiseptic to kill bacteria, and thermal heat. Each of these properties are moderately effective on their own, it is our unique combination that is the breakthrough of the 21st century as a tool for anti-aging, acne treatment and cold sore prevention.

Cold Sore and Anti Acne Prevention and Treatment

Red light and infrared combined with our septic system penetrates deep into the skin killing the bacteria that causes acne and the virally infected cells that cause cold sores. Our thermal heat conductivity further destroys the bacteria by a process called heat shock response which is a reaction bacteria have to heat whereby they transcript a number of their genes and activate heat-shock proteins. The heat shock proteins participate in the bacteria’s death by causing the bacteria to self-destruct resulting in the death of the lesions and return to he skin’s normal healthy state. To ensure the level of heat does not damage the skin, our device has advanced safety features that prevent burns and accidental retina damage from misuse of our device