83.9 F
San Fernando
Friday, Mar 29, 2024

Tehran Looks Good for Cosmetic Skin Company

Regenerative skin product developer Avita Medical Ltd. is moving into the Middle East as the company prepares to open a dedicated clinic for its treatments in Iran’s capital city of Tehran. In the beginning of the year, the United Nations lifted sanctions against Iran in exchange for limitations on its nuclear program. As a result, companies like Avita are breaking into this untapped market. The country has more than 75 million people with about 16 million who undergo cosmetic procedures every year, making it the second-largest aesthetics market in the Middle East — after Saudi Arabia — and the 10th largest in the world. “It’s just one of those places where the cosmetics industry has taken hold, similar to South Korea and Thailand,” said Avita Chief Executive Adam Kelliher. “It is a very sophisticated, developed society in these key areas we’re involved in.” U.K.-based Avita, which has its U.S. headquarters in Northridge, specializes in treatments for wounds, burns and skin defects. Its Iran clinic will initially focus on treating patients for repigmentation and scar reconstruction using its regenerative product line, which includes its lead patented technology ReCell as well as its pigmentation device ReNovaCell. To seamlessly integrate into the market, Avita has partnered with Iranian company Teb Sanaat Lotus, which will distribute Avita products through its subsidiary Zikad International Aesthetics Supplier. Zikad already has an established sales force as well as four aesthetics clinics, including its ReNovaCell clinic, which will act as a training center for doctors. An opening date for the clinic isn’t set, but Kelliher said it should open in the short term. “We are still undergoing final registration and are working to comply with Iranian protocols,” he said. Nicole Sahin, chief executive of Cambridge, Mass.-based Globalization Partners, a business development firm that helps U.S. companies expand overseas, said Iran is an important market to tap into as there is a large middle class. However, she said there are still regulatory hurdles to overcome, especially for U.S. companies. “(Avita) has a leg up because it is U.K. headquartered, making it easier to access the market,” she said. “American businesses are still quite hesitant … because the political situation is in flux. The sanctions are lifted today, but who knows what it will be like in a year or two.” Avita is also moving into other countries – including the United States. Its products have regulatory approval in some European and Asian markets but not here. The company has completed its U.S. Food and Drug Administration trial, and the participating patients are currently in a safety observation period. After that, Avita will submit an application for premarket approval, and Kelliher hopes for approval by the end of 2017.

Featured Articles

Related Articles