BSF Enterprise (LSE:BSFA), the biotechnology company developing tissue engineering and bioactive materials, has agreed Heads of Terms granting SCHAKAU Managementberatung exclusive worldwide rights to commercialise its ETSYL peptide (palmitoyl pentapeptide-87) in cosmetics, skincare and luxury beauty.
In London, the small-cap share rose 13.9% to 1.15p.
Global exclusivity, full intellectual property retention and confidentiality terms are legally binding upon signature.
The initial term runs 10 years, conditional on SCHAKAU meeting agreed annual volume targets following a 12-month ramp-up period.
SCHAKAU has allocated roughly €300,000 to fund clinical claim substantiation, regulatory filings and brand launch costs, while covering all downstream compliance expenses including CPNP/SCPN filings and safety reports at its own cost.
BSF will supply the raw bioactive material under a dose-based volume schedule, generating manufacturing margins for its subsidiary 3D Bio-tissues, with initial supply revenues expected during the 12-month preparation phase.
Net licensing income from third-party brand deals will split 50:50 after compliance and patent costs, while BSF retains full ownership of the underlying patents and manufacturing know-how.
ETSYL was originally developed in-house to stimulate collagen synthesis in tissue scaffolding before BSF identified its potential as a high-margin cosmetics ingredient.
SCHAKAU plans to launch ETSYL as the core active in its luxury skincare brand HANDS OF GOD, alongside broader ingredient licensing to other cosmetic brands.
"This transaction validates our strategy of converting platform science into non-dilutive commercial cash flows," said Che Connon, chief executive of BSF Enterprise.
Nico Schakau, managing director of SCHAKAU, said the partnership aims to "turn exceptional science into a global icon."
News Intelligence what this means for the company
BSF Enterprise has licensed its ETSYL peptide to SCHAKAU Managementberatung for exclusive worldwide commercialisation in cosmetics and skincare, with SCHAKAU funding €300,000 in clinical substantiation and launch costs while BSF retains IP ownership and manufacturing margins. This converts a tissue-engineering platform ingredient into a non-dilutive revenue stream: BSF supplies raw material on a dose-based schedule (generating manufacturing margins for subsidiary 3D Bio-tissues), splits 50:50 on third-party brand licensing income after compliance costs, and avoids the capital and regulatory burden of direct cosmetics commercialisation.
The deal validates BSF's strategy of extracting multiple commercial routes from its platform science—ETSYL was originally developed for tissue scaffolding before being repurposed as a cosmetics active. Revenue timing remains contingent: supply revenues are expected during SCHAKAU's 12-month ramp-up, and the 10-year term is conditional on SCHAKAU meeting annual volume targets, so execution risk sits with the licensee.
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