RE Cap19 Feb 2014 16:47
MIDAS SHARE TIPS: Get a flying start if you're itching to share in £430m head lice market with TyraTech
By JOANNE HART, FINANCIAL MAIL ON SUNDAY
PUBLISHED: 22:01, 8 February 2014 | UPDATED: 10:36, 10 February 2014
Target: Vamousse is safer than rival products and will be sold by Walmart, says boss Alan Reade, left
Irritating and unpleasant, head lice infestations are also difficult to eliminate. In the 1970s, about 5 per cent of children suffered from head lice during their school life. Today, more than 30 per cent are affected.
TyraTech has a revolutionary new treatment that kills all lice and their eggs. Pesticide-free, TyraTech’s Vamousse products use oils from plants and
vegetables. The US firm’s shares are just 61⁄2p but should rise significantly as the Vamousse range is rolled out and other ground-breaking products come to market.
Last month, TyraTech chairman Alan Reade revealed that giant US supermarket chain Walmart will start stocking Vamousse head lice treatment and preventative shampoo from the start of April.
The products are already on sale at about 2,500 independent pharmacies in the US but talks are being held with groups that represent thousands more.
In the UK too, Reade and his chief executive, Bruno Jactel, are negotiating with several top retailers and deals should be announced within weeks.
The global head lice market is worth more than £430 million a year and TyraTech should capture a significant percentage of it over the next five years. Lice have developed a resistance to many treatments, which can also have side effects, such as scalp irritation and headaches. As a natural product, Vamousse is safer and it has been approved by the US Food and Drug Administration, one of the toughest pharmaceutical watchdogs.
But head lice treatment is just one weapon in TyraTech’s armoury. The firm has also developed natural insect repellents for humans and animals, a market worth almost £1.5 billion a year globally.
Most insect repellents for people rely on a compound known as DEET, which was developed about 60 years ago. Some repellents contain just 5 per cent of DEET and are relatively ineffective. These days, however, stronger products are on the market, containing up to 50 per cent.
These do stave off insects, but can have unpleasant side effects – they are not supposed to be used on children, they do not work well with sun-block and they can even melt plastic, such as watch straps.
TyraTech’s repellent has none of these issues and Jactel is in talks with Amazon and other large retailers about putting it on the shelves and online. The company has also secured a partner – Swiss drugs giant Novartis – to distribute its animal insect repellent.
Insects are a big problem on farms, especially if animals are kept in barns. Spraying chemical-based insecticide in such spaces can harm the livestock, affect