Zymeworks Reports 2019 First Quarter Financial Results
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VANCOUVER, British Columbia–(BUSINESS WIRE)–Zymeworks Inc. (NYSE/TSX: ZYME), a clinical-stage biopharmaceutical
company developing multifunctional therapeutics, today reported
financial results for the first quarter ended March 31, 2019.
“We are pleased to have advanced both of our lead assets to the next
stages of clinical development; recently commencing a Phase 2 study for
ZW25 and starting enrollment in the Phase 1 clinical trial for our
antibody-drug conjugate, ZW49,” said Ali Tehrani, Ph.D., Zymeworks’
President & CEO. “Accordingly, we have also expanded our leadership
team, adding experienced executives with critical competencies needed to
facilitate the development and approval of our clinical-stage assets. We
believe we are now well-positioned to deliver on our ambitious clinical
goals throughout 2019 and beyond.”
First Quarter 2019 Business Highlights and Recent Developments
-
Phase 2 Clinical Trial Begins for ZW25 in First-Line
HER2-Expressing Metastatic Gastroesophageal Cancers
The Phase
2 trial is evaluating ZW25 in combination with standard of care (SOC)
chemotherapy for the first-line treatment of HER2-positive metastatic
gastroesophageal cancers. This trial is intended to support a
potential first-line registrational trial and could position ZW25 as a
new SOC.
-
Phase 1 ZW49 Clinical Study Open and Enrolling Patients
Enrollment
is underway in the United States for the Phase 1 clinical trial
of ZW49, Zymeworks’ novel bispecific HER2-targeted antibody-drug
conjugate. The objectives of this study are to evaluate safety and
early anti-tumor activity as well as establish a recommended dose for
future clinical trials.
-
Three Experienced Development Executives Added to Management Team
Zymeworks
expanded its leadership team and added key functional expertise to
support the development of its maturing clinical pipeline. The newly
created positions include Neil Josephson, M.D., Vice President,
Clinical Research; Bruce Hart, Ph.D., Vice President, Regulatory
Affairs; and Mark Hollywood, Senior Vice President, Technical and
Manufacturing Operations.
-
Eli Lilly and Daiichi Sankyo Programs Advance Toward Clinical
Testing
Zymeworks’ partner, Eli Lilly, filed an
Investigational New Drug Application for its second Azymetric
program, triggering a US$8.0 million payment to Zymeworks. In
addition, Daiichi Sankyo recently exercised its option for a
commercial license to an immuno-oncology bispecific built using
Zymeworks’ Azymetric and EFECT platforms. Zymeworks will receive a
US$3.5 million payment.
Financial Results for the Quarter Ended March 31, 2019
Revenue for the three months ended March 31, 2019 was $11.9 million as
compared to $0.04 million in the same period of 2018. Revenue for 2019
includes an $8.0 million development milestone payment upon Lilly’s
submission of an investigational new drug application, $3.5 million of
recognized deferred revenue from our licensing and collaboration
agreement with BeiGene, as well as $0.4 million in other research
support payments. Revenue for the same period in 2018 was $0.04 million,
consisting of research support payments.
For the three months ended March 31, 2019, research and development
expenses were $17.5 million as compared to $13.1 million in the first
three months of the prior year. The change was primarily due to an
increase in clinical trial activity and associated drug manufacturing
costs for ZW25, as well as an increase in other research and discovery
activities as compared to the same period in 2018. Research and
development expenses also included non-cash stock-based compensation
expense of $1.1 million from equity classified equity awards and $0.4
million expense related to the non-cash mark-to-market revaluation of
certain historical liability classified equity awards.
For the three months ended March 31, 2019, general and administrative
expenses were $9.0 million as compared to $7.1 million in the first
quarter of 2018. The change was primarily due to an increase in employee
compensation expenses from increased head count in 2019 over 2018,
including non-cash stock-based compensation, as well as other increases
in professional fees associated with year-over-year corporate growth.
General and administrative expenses included non-cash stock-based
compensation expense of $1.5 million from equity classified equity
awards and $1.3 million expense related to the non-cash mark-to-market
revaluation of certain historical liability classified equity awards.
The net loss for the three months ended March 31, 2019, was
$13.6 million as compared to $21.2 million in the same period of 2018.
This was primarily due to increased revenue, interest income and 2018
warrant valuation expense, which was not relevant for 2019, that offset
an increase in research and development expenses associated with our
lead therapeutic candidates and other programs as well as general and
administrative expenses.
Zymeworks expects research and development expenditures to increase over
time in line with the advancement and expansion of the Company’s
clinical development of its product candidates, as well as its ongoing
preclinical research activities. Additionally, Zymeworks anticipates
continuing to receive revenue from its existing and future strategic
partnerships, including technology access fees and milestone-based
payments. However, Zymeworks’ ability to receive these payments is
dependent upon either Zymeworks or its collaborators successfully
completing specified research and development activities.
As of March 31, 2019, Zymeworks had $180.3 million in cash and cash
equivalents and short-term investments.
About Zymeworks Inc.
Zymeworks is a clinical-stage biopharmaceutical company dedicated to the
development of next-generation multifunctional biotherapeutics. The
Company’s suite of therapeutic platforms and its fully integrated drug
development engine enable precise engineering of highly differentiated
product candidates. Zymeworks’ lead clinical candidate, ZW25, is a novel
Azymetric
bispecific antibody currently in Phase 2 clinical
development. The Company’s second clinical candidate, ZW49, is a
bispecific antibody-drug conjugate currently in Phase 1 clinical
development and combines the unique design and antibody framework of
ZW25 with Zymeworks’ proprietary ZymeLink cytotoxic payload. Zymeworks
is also advancing a deep preclinical pipeline in immuno-oncology and
other therapeutic areas. In addition, its therapeutic platforms are
being leveraged through multiple strategic partnerships with eight
global biopharmaceutical companies. For more information, visit www.zymeworks.com.
Cautionary Note Regarding Zymeworks’ Forward-Looking Statements
This press release includes “forward-looking statements” within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995 and
“forward-looking information” within the meaning of Canadian securities
laws, or collectively, forward-looking statements. Forward-looking
statements in this news release include, but are not limited to,
statements that relate to potential payments and/or royalties payable to
Zymeworks under its corporate agreements, the speed and outcome of drug
development plans, ZW25’s ability to be approved and become a
standard-of-care treatment for certain types of cancer, Zymeworks’
potential global growth, and other information that is not historical
information. When used herein, words and phrases such as “enable”,
“will”, “may”, “expect”, “anticipate”, “eligible to”, and similar
expressions are intended to identify forward-looking statements. In
addition, any statements or information that refer to expectations,
beliefs, plans, projections, objectives, performance or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking. All forward-looking
statements are based upon Zymeworks’ current expectations and various
assumptions. Zymeworks believes there is a reasonable basis for its
expectations and beliefs, but they are inherently uncertain. Zymeworks
may not realize its expectations, and its beliefs may not prove correct.
Actual results could differ materially from those described or implied
by such forward-looking statements as a result of various factors,
including, without limitation, market conditions and the factors
described under “Risk Factors” in Zymeworks’ Quarterly Report on Form
10-Q for its quarter ended March 31, 2019 (a copy of which may be
obtained at www.sec.gov and www.sedar.com).
Consequently, forward-looking statements should be regarded solely as
Zymeworks’ current plans, estimates and beliefs. Investors should not
place undue reliance on forward-looking statements. Zymeworks cannot
guarantee future results, events, levels of activity, performance or
achievements. Zymeworks does not undertake and specifically declines any
obligation to update, republish, or revise any forward-looking
statements to reflect new information, future events or circumstances or
to reflect the occurrences of unanticipated events, except as may be
required by law.
ZYMEWORKS INC.
Condensed Interim Consolidated Statements
of Loss
(Expressed in thousands of U.S. dollars except share
and per share data)
| Three Months Ended March 31, | |||||
| 2019 | 2018 | ||||
| (unaudited) | (unaudited) | ||||
| Revenue | |||||
| Research and developmental collaborations | $ 11,925 | $ 40 | |||
| Operating expenses | |||||
| Research and development | 17,475 | 13,085 | |||
| General and administrative | 9,003 | 7,066 | |||
| Total operating expenses | 26,478 | 20,151 | |||
| Loss from operations | (14,553) | (20,111) | |||
| Other income (expense), net | 1,105 | (1,158) | |||
| Loss before income taxes | (13,448) | (21,269) | |||
| Income tax (expense) recovery, net | (193) | 65 | |||
| Net loss | $ (13,641) | $ (21,204) | |||
| Net loss per common share: | |||||
| Basic | $ (0.43) | $ (0.83) | |||
| Diluted | $ (0.43) | $ (0.83) | |||
| Weighted-average common shares outstanding: | |||||
| Basic | 32,020,437 | 25,459,150 | |||
| Diluted | 32,020,437 | 25,459,150 | |||
ZYMEWORKS INC.
Selected Condensed Consolidated Balance
Sheet Data
(Expressed in thousands of U.S. dollars)
|
March 31, |
December 31,
2018 |
||||
| Cash, cash equivalents and short-term investments | $ 180,308 | $ 200,164 | |||
| Working capital | 162,174 | 174,383 | |||
| Total assets | 238,279 | 244,363 | |||
| Accumulated deficit | (158,913) | (145,272) | |||
| Total shareholders’ equity | 170,007 | 180,490 | |||
NON-GAAP FINANCIAL MEASURES
In addition to reporting financial information in accordance with U.S.
generally accepted accounting principles (“GAAP”) in this press release,
Zymeworks is also reporting normalized expenses and normalized loss per
share, which are non-GAAP financial measures. Normalized expenses and
normalized loss per share are not defined by GAAP and should not be
considered as alternatives to net loss, net loss per share or any other
indicator of Zymeworks’ performance required to be reported under GAAP.
In addition, Zymeworks’ definitions of normalized expenses and
normalized loss per share may not be comparable to similarly titled
non-GAAP measures presented by other companies. Investors and others are
encouraged to review Zymeworks’ financial information in its entirety
and not rely on a single financial measure. As defined by Zymeworks,
normalized expenses represent total research and development expenses
and general and administrative expenses adjusted for non-cash
stock-based compensation expenses for equity and liability classified
equity instruments.
Normalized expenses are a non-GAAP measure that Zymeworks believes is
useful because it excludes those items that Zymeworks believes are not
representative of Zymeworks’ operating expenses.
GAAP to Non-GAAP Reconciliations
(Expressed in thousands
of U.S. dollars except share and per share data)
(unaudited)
|
Three Months Ended
March 31, |
||||||||
| 2019 | 2018 | |||||||
| Research and development expenses | $ 17,475 | $ 13,085 | ||||||
| Stock based compensation for equity classified instruments | (1,127 | ) | (416 | ) | ||||
| Stock based compensation for liability classified instruments | (420 | ) | (776 | ) | ||||
| Normalized research and development expenses (Non-GAAP basis) | 15,928 | 11,893 | ||||||
| General and administrative expenses | 9,003 | 7,066 | ||||||
| Stock based compensation for equity classified instruments | (1,490 | ) | (591 | ) | ||||
| Stock based compensation for liability classified instruments | (1,326 | ) | (1,676 | ) | ||||
| Normalized general and administrative expenses (Non-GAAP basis) | $ 6,187 | $ 4,799 | ||||||
|
Three Months Ended March 31, |
||||||||
| 2019 | 2018 | |||||||
| Net loss per common share – Basic | $ (0.43 | ) | $ (0.83 | ) | ||||
| Stock based compensation for equity classified instruments | 0.08 | 0.04 | ||||||
| Stock based compensation for liability classified instruments | 0.05 | 0.10 | ||||||
| Normalized net loss per common share – Basic (Non-GAAP basis) | (0.30 | ) | (0.69 | ) | ||||
| Net loss per common share – Diluted | (0.43 | ) | (0.83 | ) | ||||
| Stock based compensation for equity classified instruments | 0.08 | 0.04 | ||||||
| Stock based compensation for liability classified instruments | 0.05 | 0.10 | ||||||
| Normalized net loss per common share – Diluted (Non-GAAP basis) | $ (0.30 | ) | $ (0.69 | ) | ||||
Contacts
Zymeworks Inc.
Investor Inquiries:
Ryan Dercho, Ph.D.
(604) 678-1388
[email protected]
Tiffany Tolmie
(604) 678-1388
[email protected]
Media Inquiries:
Angela Bitting
(925) 202-6211
[email protected]
TORONTO and GLIL YAM, Israel, Oct. 2, 2024 /PRNewswire/ — IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC) (the “Company“, “IMCannabis“, or “IMC“), a leading medical cannabis company with operations in Israel and Germany, is pleased to announce that the preliminary sales results in Germany by its German subsidiary, Adjupharm GmbH (“IMC Germany“), for the third quarter of 2024 have significantly exceeded expectations, showing a remarkable 50% increase in revenue compared to the second quarter, where IMC Germany sold about CAD$ 3.5M. This outstanding growth demonstrates IMC Germany’s successful execution of its strategic initiatives and strong market demand for its products.
Since the partial legalization of cannabis in Germany came into effect in April 2024, the demand for cannabis products in pharmacies has increased significantly, emphasizing the importance of a robust, reliable supply chain.
“Since April 1st, one of our key objectives was to ensure a supply chain strong enough to meet the increase in demand. This preliminary 50% growth is testament, in part, to delivering on this objective,” said Oren Shuster, CEO of IMC. “We are thrilled with our Q3 performance, which not only surpassed our own targets but also highlights the dedication and hard work of our entire team.”
About IM Cannabis Corp.
IMC (Nasdaq: IMCC) (CSE: IMCC) is an international cannabis company that provides premium cannabis products to medical patients in Israel and Germany, two of the largest medical cannabis markets. The Company has focused its resources to achieve sustainable and profitable growth in its highest value markets, Israel and Germany. The Company leverages a transnational ecosystem powered by a unique data-driven approach and a globally sourced product supply chain. With an unwavering commitment to responsible growth and compliance with the strictest regulatory environments, the Company strives to amplify its commercial and brand power to become a global high-quality cannabis player.
The IMC ecosystem operates in Israel through its commercial relationship with Focus Medical Herbs Ltd., which imports and distributes cannabis to medical patients, leveraging years of proprietary data and patient insights. The Company also operates medical cannabis retail pharmacies, online platforms, distribution centers, and logistical hubs in Israel that enable the safe delivery and quality control of IMC products throughout the entire value chain. In Germany, the IMC ecosystem operates through Adjupharm GmbH, where it distributes cannabis to pharmacies for medical cannabis patients.
Disclaimer for Forward-Looking Statements
This press release contains forward-looking information or forward-looking statements under applicable Canadian and U.S. securities laws (collectively, “forward-looking statements”). All information that addresses activities or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “likely” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made. In the press release, such forward-looking statements include, but are not limited to, statements relating to statements relating to compliance with Nasdaq’s continued listing requirements, and timing and effect thereof; the potential outcome of the Licensing Agreement and the effect of collaboration with Carmel in the Israeli market and the potential exclusive launch of the BLKMKTTM brand this year in Germany.
The above lists of forward-looking statements and assumptions are not exhaustive. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated or implied by such forward-looking statements due to a number of factors and risks. These include: the failure of the Company to comply with applicable regulatory requirements in a highly regulated industry; unexpected changes in governmental policies and regulations in the jurisdictions in which the Company operates; the Company’s ability to continue to meet the listing requirements of the Canadian Securities Exchange and the NASDAQ Capital Market; any unexpected failure to maintain in good standing or renew its licenses; the ability of the Company and Focus Medical (collectively, the “Group”) to deliver on their sales commitments or growth objectives; the reliance of the Group on third-party supply agreements to provide sufficient quantities of medical cannabis to fulfil the Group’s obligations; the Group’s possible exposure to liability, the perceived level of risk related thereto, and the anticipated results of any litigation or other similar disputes or legal proceedings involving the Group; the impact of increasing competition; any lack of merger and acquisition opportunities; adverse market conditions; the inherent uncertainty of production quantities, qualities and cost estimates and the potential for unexpected costs and expenses; risks of product liability and other safety-related liability from the usage of the Group’s cannabis products; supply chain constraints; reliance on key personnel; the risk of defaulting on existing debt and war, conflict and civil unrest in Eastern Europe and the Middle East.
Any forward-looking statement included in this press release is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward-looking information is made. The Company does not undertake any obligation to update forward-looking statements except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
CAUTIONARY NOTE REGARDING FUTURE ORIENTED FINANCIAL INFORMATION
This press release may contain future oriented financial information (“FOFI”) within the meaning of Canadian securities legislation, about prospective results of operations, financial position or cash flows, based on assumptions about future economic conditions and courses of action, which FOFI is not presented in the format of a historical balance sheet, income statement or cash flow statement.
The FOFI has been prepared by management to provide an outlook of the Company’s activities and results and has been prepared based on a number of assumptions including the assumptions discussed under the heading above entitled “Cautionary Note Regarding Future Oriented Financial Information” and assumptions with respect to the costs and expenditures to be incurred by the Company, capital expenditures and operating costs, taxation rates for the Company and general and administrative expenses. Management does not have, or may not have had at the relevant date, firm commitments for all of the costs, expenditures, prices or other financial assumptions which may have been used to prepare the FOFI or assurance that such operating results will be achieved and, accordingly, the complete financial effects of all of those costs, expenditures, prices and operating results are not, or may not have been at the relevant date of the FOFI, objectively determinable.
Importantly, the FOFI contained in this press release and the documents incorporated by reference herein, are, or may be, based upon certain additional assumptions that management believes to be reasonable based on the information currently available to management, including those assumptions discussed under the heading “Disclaimer for Forward-Looking Statements” and assumptions about: (i) the future pricing for the Company’s products, (ii) the future market demand and trends within the jurisdictions in which the Company may from time to time conduct the Company’s business, and (iii) the Company continued ability to maintain its capital to fund its ongoing business development and future growth.
The FOFI or financial outlook contained in this press release do not purport to present the Company’s financial condition in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and there can be no assurance that the assumptions made in preparing the FOFI will prove accurate. The actual results of operations of the Company and the resulting financial results will likely vary from the amounts set forth in the analysis presented in any such document, and such variation may be material (including due to the occurrence of unforeseen events occurring subsequent to the preparation of the FOFI). The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments as at the applicable date. However, because this information is highly subjective and subject to numerous risks including the risks discussed under the heading above entitled “Cautionary Note Regarding Future Oriented Financial Information”, FOFI or financial outlook within this in this press release should not be relied on as necessarily indicative of future results.
Company Contact:
Anna Taranko, Director Investor & Public Relations
IM Cannabis Corp.
+49 157 80554338
[email protected]
Oren Shuster, CEO
IM Cannabis Corp.
[email protected]
Logo – https://mma.prnewswire.com/media/1742228/IM_Cannabis_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/imc-germany-announces-outstanding-preliminary-q3-2024-performance-with-50-growth-over-q2-302265523.html
Gedeon
Gedeon Richter presents analysis on cannabis usage among patients with schizophrenia: a new medical solution to a severe issue might be available
A novel psychiatric scale developed by colleagues of Gedeon Richter Plc. in collaboration with academia was also presented at the 37th ECNP conference
BUDAPEST, Hungary, Sept. 25, 2024 /PRNewswire/ — During the 37th Annual Meeting of the European College of Neuropsychopharmacology (ECNP), held between 21-24 September 2024, new analyses of cariprazine studies were presented by Gedeon Richter Plc. First of all, cariprazine seems to be an effective treatment option for patients with schizophrenia and comorbid cannabis use disorder, according to one of the five posters presented at the congress. Furthermore, during an industry sponsored session, a new transdiagnostic scale for quantifying and visualizing symptom severity of patients with different psychiatric conditions was also presented, that was developed by the medical team of Gedeon Richter Plc. and recognized professors.
Schizophrenia often co-occurs with cannabis use disorder however, available antipsychotic treatments frequently fail to address both disorders. In a scientific poster showcased by Gedeon Richter at ECNP in Milan, cariprazine was presented to be a potentially effective treatment option for patients with first-episode schizophrenia and comorbid cannabis use disorder according to the results of a 6-month observational study. Four other scientific posters were also presented at the congress by Gedeon Richter about the role of cariprazine in the treatment of schizophrenia such as the efficacy of cariprazine in patients who develop akathisia as a side effect or the impact of functioning on the risk of relapse in patients treated with cariprazine vs placebo. Cariprazine is a 3rd generation antipsychotic medication with a unique receptor profile and proven efficacy in schizophrenia, including negative symptoms.
Lacking biomarkers in psychiatry calls for valid and reliable assessments of psychopathology across mental disorders that are easy to use, bridge research and clinical care, and that can capture clinician and patient perspectives. Recognizing this problem, the Gedeon Richter medical team together with experienced psychiatric professors developed a scale to handle this challenge. Using this new transdiagnostic scale called the Transdiagnostic Global Impression – Psychopathology (TGI-P) scale could help CNS professionals and psychologists to quickly assess and visualize symptoms in several psychiatric conditions. During an industry sponsored session, the details and the usability of the tool were shown to the audience.
About Richter and About Cariprazine
Ottawa, Sept. 20, 2024 (GLOBE NEWSWIRE) — The global bioplastic packaging market size was valued at USD 17.99 billion in 2023 and is predicted to increase from USD 21.09 billion in 2024 to USD 87.98 billion by 2033, a study published by Towards Packaging a sister firm of Precedence Statistics.
Key Takeaways: Leading Factors of the Bioplastic Packaging Market
- Use of renewable resources due to growing sustainable demand is the major factor that drives the market.
- Eco-friendly alternatives perceive growth in North America due to growing environmental concerns.
- Food and beverage industry is the dominating sector in the market due to the increasing consumption of packed food.
- Limited infrastructure for bioplastic processing is an unceasing challenge for the market.
Download Statistical Data: https://www.towardspackaging.com/download-statistics/5215
Bioplastic Packaging Market: At a Glance
The bioplastic packaging market revolves around adoption renewable packaging which can be used multiple times and which is an alternative to the fossil fuel-derived plastics. Along with this, resource depletion, reduction of carbon footprint and material waste are the leading objectives of the market. The demand for sustainable packaging solution and the increasing plastic waste has increased the demand of the market.
The bio-degradable feature attributes to the reusable function of bioplastic packaging. The consumer demand for sustainable packaging has also increased the demand of the bioplastic packaging, given the reason it provides resistance and prevents denting as well. The bioplastic material tends to degrade easily which also reduces landfill waste.
Regional Insights
Europe thrives with its vision of sustainable packaging demand
Europe is the dominating region in bioplastic packaging market. The sustainability focus of Europeans has sustained the environment and the alternative packaging solutions have increased the popularity of eco-friendly packaging. The European vision of preserving sustainability is also about turning packaging materials into recyclable or reusable material by 2030 and this has increased exploration of alternative materials, design strategies and mostly importantly waste management system.
Get the latest insights on packaging industry segmentation with our Annual Membership: https://www.towardspackaging.com/get-an-annual-membership
Europe targets to reduce unnecessary packaging by 10% in 2035 and by 15% in 2040. The demand for bioplastic as an alternative increase as Europe has strict regulations against plastic usage which aims to reduce the utilization of single use-plastic to prevent environmental hazards, especially, in marine environment and human health. In addition, European Union also aims at promoting circular economy and innovative sustainable packaging solutions with specific targets which are 77% separate collection target for plastic bottles by 2025 and will be increased to 90% by 2029. Furthermore, 25% of recycled plastic will be incorporated in PET beverage bottles from 2025 and will be increased by 30% in all plastic beverage bottles from 2030.
- In January 2024, European retailers were relived to watch the inflation slow down as it had decreased the consumer rate by 0.1%. Despite the increasing rates and fleeting number of consumers, shopkeepers were committed to the sustainable drive. The UK consumer survey stated that 62% believed that high prices are pulling them back from being sustainable and 52% said that sustainable alternatives should have affordable prices.
North America is a steady region for the bioplastic packaging market due to its sustainable packaging demand which is also the growing consumer requirement. The impact of conventional plastic adds to the ocean litter hazard and as an alternative to reduce carbon print, sustainable solutions are being adopted. Although the American consumers worry more about convenience, price and quality given the increased purchasing rates and the tax-paying lifestyle, 40% of consumers pay more attention to the provided sustainable packaging.
The use of compostable packaging allows circular economy in the US and the companies are innovating new alternatives to support the sustainable drive and to increase their profit margin. According to U.S Environmental Protection Agency, reuse of plastic materials circulates the economy and reduces environmental impact if the material is in constant use instead of manufacturing new one. According to PEW’s research, reuse of plastics can accomplish 30% of reduction, substitution efforts by 17%, improved innovations in recycling by 20% and proper management at end-of-life can achieve a 23% reduction of plastic pollution in the environment.
If there’s anything you’d like to ask, feel free to get in touch with us @ [email protected]
- In November 2023, Knox County, a startup had announced the of AgroRenew LLC and had also planned to build $83 million processing facility which was designed to convert food waste into eco-friendly bioplastics. The company had expected to establish itself in early 2024 and had aimed to produce 150,000 tons of bioplastic annually.
Asia-Pacific is the fastest growing region in bioplastic packaging market with its large population as a contributor and its rapidly increasing industrial sector. The packed food consumption and the boom of e-commerce also gave preference to sustainable packaging due to strict regulations and subsidies provided to promote the compostable packaging. According to Department of Biotechnology, Ministry of Science & Technology, Government of India, the usage of single-use plastic (SUPs) was intended to stop by December 2022. The policy of Government of India (GOI) was changed to promote the development of biodegradable plastic products instead of single-use plastic.
The method used for testing substances should be able to demonstrate biodegradability as per national and international standards and should also be interim approved and receive provisional certification of biodegradability. China having a large industrial production had signed the Paris agreement to reduce carbon footprint and oil dependency as well.
Although the National Development and Reform Commission and Ministry of Ecology and Environment had plans to reduce plastic garbage, the limited infrastructure for recycling and manufacturing biodegradable plastic came as a challenge. The Chinese Government had implemented ban on plastic recycled and prohibition of non-biodegradable single-use plastic.
- In February 2024, Balrampur Chini Mills Limited (BCML), which is a leading integrated sugar mill Kolkata-based company had announced a project with integration of ₹2,000 crore and it was going be the first industrial bioplastic plant in India. The company also stated that it had well-aligned sustainable goals to combat the climate change.
Driver
Government regulations drive the bioplastic packaging market
The major driving factor is the environmental regulations due to increasing plastic waste production which is a problem for the eco-system. The growing concern for climate change, increasing plastic pollution and landfill waste has led to the utilization of bioplastic packaging which is reliable and bio-degradable. The government policies promote the use of biodegradable and bioplastic packaging as it reduces the use of plastic and also its generation.
The government initiatives will increase sales, improve brand perception and also contribute to cost-savings. According to the Consumer Brands Association, FMCG manufacturers have adopted 100% recycled packaging by 2030.
Restraint
Limited infrastructure and higher costs of materials hinder the market growth
The leading challenges which hinder the growth of bioplastic packaging market is high material costs and limited infrastructure. The manufacturing process and raw materials can affect the production of biodegradable packaging. The limited infrastructure also poses as a challenge for the manufacturing and recycling processes.
Opportunity
Integration of Artificial Intelligence
The technological advancement offers new trends which are development of raw materials like algae, mushroom mycelium, and agricultural waste which poses as an emerging alternative. The major factor which technology can contribute is in biodegradability which will enhance the decomposing process of plastic and it also offers upcoming features like the antimicrobial properties which are significant for medical applications, use of UV resistance for outdoor use, and improved barrier properties for food packaging. Collaboration among leading industries can create more innovate and ground-breaking effective solutions for the bioplastic packaging market.
Top Companies Leading the Bioplastic Packaging Market
- Amcor plc
- Novamont S.p.A
- NatureWorks, LLC
- Coveris
- Sealed Air
- Alpha Packaging
- Constantia Flexibles Group GmbH
- Mondi plc
- Truegreen
- Transcontinental Inc.
- ALPLA
- Envigreen
- Nature’s Bio Plastic
- Raepak Ltd.
- Tipa-corp Ltd.
- Treemera GmbH
- Element Packaging Ltd
- Alpagro Packaging
Recent Development
| Company | Balrampur Sugar Mills Firm |
| Headquarters | Uttar Pradesh, India |
| Recent Development | In June 2024, the Uttar Pradesh Government had announced to build a bioplastic park in the Lakhimpur Kheri district which aimed at increasing local economy. The bioplastic park was designed to promotes the usage of bioplastic plastics. |
| Company | Praj Industries |
| Headquarters | Maharashtra |
| Recent Development | In February 2024, Praj Industries had announced that its pilot plant for polylactic acid (PLA) will be completed by April 2024. The company will develop renewable chemicals which is a part of R&D push. The Union Budget had also contemplated a policy for bio-manufacturing and bio foundry. |
Segmental Insights
By Type
The flexible segment is the dominating segment in the bioplastic packaging market. It is dominating due to its properties which are conserving resources and contributing to the sustainability. The flexible segment provides convenience, strong protection and reduces wastage of food and can also resist denting and breakage. Apart from this, it also increases shelf life of the products and the packaging is in demand due to its features like multi-layer construction and eco-friendly packaging solution. Lightness, safety and resistance are the factors which increase the demand of bioplastic packaging.
The rigid segment is the fastest growing segment in the bioplastic packaging market. It will dominate the market due to its properties which are providing protection, resistance and preserving product quality. The rigid segment offers a durable and reliable packaging which makes it preferred among the consumers. Customization and exceptional product protection are the essential features of the rigid segment.
By Application Type
The food and beverage segment are the dominating segment in the bioplastic packaging market. The segment dominates due extended shelf life provided to the food products and long-lasting convenience and visibility. The bioplastic packaging depends upon the type of packaging it provides which provides string barrier against external elements like oxygen, moisture and prevents food spoilage as well. Th global consumption of containers like boxes, bags, jars and pouches has increased the bioplastic packaging demand in food sector.
The consumer and goods segment are the fastest growing segment in the bioplastic films packaging market. The segment dominates due to sealed packaging and robust protection by bioplastic packaging.
More Insights of Towards Packaging
- The global end-of-line packaging market size is estimated to reach USD 9.50 billion by 2033, up from USD 6.14 billion in 2023, at a compound annual growth rate (CAGR) of 4.60% from 2024 to 2033.
- The global surgical instruments packaging market size reached US$ 24.8 billion in 2023 and is projected to hit around US$ 49.1 billion by 2034, expanding at a CAGR of 6.55% during the forecast period from 2024 to 2033.
- The global cannabis packaging market size reached USD 2.32 billion in 2023 and is projected to hit around USD 22.10 billion by 2034, expanding at a CAGR of 22.74% during the forecast period from 2024 to 2034.
- The global clinical trial packaging market size reached USD 2.95 billion in 2023 and is projected to hit around USD 9.12 billion by 2034, expanding at a CAGR of 10.80% during the forecast period from 2024 to 2033.
- The global panel level packaging market size is estimated to reach USD 11.13 billion by 2033, up from USD 0.43 billion in 2023, at a compound annual growth rate (CAGR) of 38.60% from 2024 to 2033.
- The global hazardous goods packaging market size reached US$ 11.50 billion in 2023 and is projected to hit around US$ 21.38 billion by 2034, expanding at a CAGR of 5.80% during the forecast period from 2024 to 2033.
- The global rigid tray market size reached US$ 11.65 billion in 2024 and is projected to hit around US$ 14.72 billion by 2034, expanding at a CAGR of 2.37% during the forecast period from 2024 to 2034.
- The global cider packaging market size is estimated to reach USD 7.05 billion by 2033, up from USD 4.08 billion in 2023, at a compound annual growth rate (CAGR) of 5.77% from 2024 to 2033.
- The global boxboard packaging market size is estimated to reach USD 117.61 billion by 2033, up from USD 65.73 billion in 2023, at a compound annual growth rate (CAGR) of 6.12% from 2024 to 2033.
- The global corrugated plastic tray market size reached US$ 665.47 million in 2023 and is projected to hit around US$ 1190.73 million by 2034, expanding at a CAGR of 5.14% during the forecast period from 2024 to 2034.
Bioplastic Packaging Market Segment
By Material
- Biodegradable
- Polylactic Acid
- Starch Blends
- Polybutylene Adipate Terephthalate (PBAT)
- Polybutylene Succinate (PBS)
- Others
- Non-biodegradable
- Bio Polyethylene
- Bio Polyethylene Terephthalate
- Bio Polyamide
- Others
By Type
- Flexible
- Rigid
By Application
- Food & Beverages
- Consumer Goods
- Cosmetic & Personal Care
- Pharmaceuticals
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Sweden
- Denmark
- Norway
- Asia Pacific
- China
- Japan
- India
- South Korea
- Thailand
- Latin America
- Brazil
- Mexico
- Argentina
- Middle East and Africa (MEA)
- South Africa
- UAE
- Saudi Arabia
- Kuwait
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