LEXINGTON, KY– Allylix, a developer of fine chemicals, terpenes and production platforms for the flavor & fragrance, pharmaceutical, nutraceutical and agricultural markets, has secured a financing round of $3.35 million. Based in San Diego, CA, the company’s research and development labs are in Lexington.
The funding, which will be used to launch the first three of the company’s six initial products, was raised by investments from several well-known angel investment groups and venture capitalists, including the Tech Coast Angels, Life Science Angels, Blue Grass Angels, Pasadena Angels and Tate & Lyle Ventures, a $50 million venture capital fund backed by Tate & Lyle.
Allylix’s technology platform allows terpenes, a class of natural products that gives plants their characteristic flavors and fragrances, to be produced via fermentation in yeast. Allylix’s technology replaces the costly and laborious extraction of terpenes from plants and enables the cost effective production of flavors and fragrances for perfumes, personal care, food and household markets.
“Allylix has developed promising proprietary technology and a solid business model for its commercial terpene product line, which is what initially attracted us to the company,” says Stephen Block, lead investor for the Tech Coast Angels. “The market growth and revenue potential for Allylix’s products are enormous.
Allylix’s low-cost process reduces the costs of producing terpenes to as little as 10 percent of the conventionally high costs associated with traditional processes, thereby making these valuable compounds available to a wide variety of new market applications.”
Initially, Allylix will focus upon a class of terpenes called sesquiterpenes. Sesquiterpenes are part of the $1.9 billion aroma chemical segment of the flavor and fragrance market.
However, current prices for sesquiterpenes tend to be very high due to the limited supply of quality starting materials and the high cost of extraction and purification throughout the industry. Allylix has identified a number of sesquiterpene flavors and fragrances whose markets would expand substantially if there were a low cost alternative.
“With research and development nearing completion, we will use the substantial capital raised from these renowned angel investors and venture capitalists to launch our initial product line for the flavor and fragrance market,” said Carolyn Fritz, chief executive officer of Allylix.
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