Annual Report & Accounts 2014 - CEO Report and Operational Review
TYRATECH • ANNUAL REPORT 2014 • PAGE 3
CEO Rep o r t a n d O p e rat i o n a l Rev i ew
B r u n o J a c t e l ,
C h i e f E x e c u t i v e O f f i c e r
Dear Shareholders,
The past year has been a milestone year for our company as we
introduced into the market our first consumer products and started
to implement our business model of managing the entire product
cycle, from discovery-to-development-to-commercialisation.
TyraTech is at the forefront of an evolving marketplace where
customers are demanding new alternatives to chemical
pesticides. Families want to protect their children and pets against
insects and parasites with non-toxic solutions, eat food that is not
contaminated with pesticide residues, and enjoy an environment
that is not polluted. Our vision is to use green technology to meet
this market demand; "putting nature to work" to control insects
and parasites and, ultimately, enhance the health and wellbeing
of humans, animals and the planet. I believe that TyraTech
has technology powerful and broad enough to bring to fruition
innovative insect and parasite control products that are effective
and safe for multiple applications in personal care, animal health,
home, garden and agriculture. I also believe in the power of our
innovation, in the skills of our collaborators, and in the strength of
our external partnerships to bring to the market a series of products
that will make a difference.
What did we achieve in 2014 and early 2015?
We focused our efforts to successfully launch Vamousse, our
flagship head lice product
Second only to the common cold, pediculosis, or head lice
infestation, remains the most frequent health issue facing children
aged 3 to 11. More than 12 million children are affected in the
USA every year and it is a global problem. In addition, the most
common pesticides used to treat this parasite are becoming less
effective due to increased head lice resistance.
Vamousse Lice Treatment is scientifically proven to kill 100% of lice
and eggs, even those that have developed resistance against
the most common pyrethroid products, in a single 15-minute
treatment. Vamousse Lice Treatment comes in a convenient
mousse formulation, is non-toxic, pesticide-free, and safe to use on
children two years of age and older. Vamousse Lice Protection is a
shampoo gentle enough for daily use and specifically developed
to help the consumer protect against an infestation following a
potential exposure to head lice or following treatment to prevent
re-infestation.
In 2014, TyraTech successfully launched Vamousse Lice Treatment
in the USA with a nationwide listing with Walmart. In the second
half of 2014, both Vamousse Lice Treatment and Vamousse Lice
Protection Shampoo were introduced in the UK with major retailers
including Boots, Superdrug, Tesco and Sainsbury's. We supported
the launch with a strong marketing campaign. Our objective was
to achieve broad market penetration with major distributors in
both the USA and the UK. This was further accomplished in early
2015 when we expanded our shelf presence in the USA with CVS
and Walgreens, the two biggest pharmacy chains in the USA and
added Vamousse Protective Shampoo at Walmart nationwide.
We also strengthened our market presence in the UK by adding
distribution of the Vamousse suite of products with Lloyds,
Rowlands, Day Lewis and a host of independent pharmacies. The
deployment of our products in these new distribution channels
positions us well to address the market demand occurring in the
high head lice season, which coincides with the traditional back
to school period.
The success of Vamousse drove our financial results in 2014
In 2014, the Company generated $2.8 million in product sales
(FY2013: $0.0 million) and total gross revenue of $4.9 million (2013:
$1.4 million). These numbers reflected only a partial year of product
sales, primarily through our relationship with Walmart. This success
led Walmart to take a second product, the Protection Shampoo,
for 2015, and led CVS and Walgreens to accept the Treatment
product with shipments beginning early 2015.
The net loss of the Company for 2014 was $5.1 million (2013: $4.9
million), mainly driven by the launch of Vamousse in the UK in the
second half of the year and the decision of the major pharmacy
chains in the USA to go for a full launch of Vamousse in 2015,
instead of a partial-year launch at the end of 2014. Cash and cash
equivalents were $2.2 million at year end (2013: $0.9 million). We
expect Vamousse to still drive most of our sales in 2015, benefiting
