Works. All right. Thank you everyone for coming. My name's Nathan Givoni. I'm CEO and co-founder of Gelteq. I'm just getting instructions on putting the mic closer, that's fine. Thank you for coming and hearing about Gelteq. We're advancing the science of oral drug and nutrient delivery for humans and animals. As a background, I'm a trained dietician and scientist. I was one of the co-founders, and the idea for this business came from a lot of our private practice work in seeing the compliance for people with their medications. We've evolved that dramatically over the last 12 months to be able to widen its use and applications, and I'll take you through some of those highlights as we go today. That's just the most expansive page we've had, I'll click over.
In regards to Gelteq and where do we sit and what is Gelteq? For those that haven't actually ever heard about us, we've created Gelteq technology, which is a platform, a proprietary platform, that allows it to be easier for companies to look at the absorption as well as also the solubility and the precise dosing of products. We've created our own technology that allows it to be easier for pharmaceutical companies to not lose out on drug candidates that are struggling to actually get to market. When a pharmaceutical company has developed and spent a lot of money putting together an actual API, an active pharmaceutical ingredient, the challenge for that is how do you actually put that into an actual dose, whether it's a pill, a capsule.
There's a lot of issues that come from how those actual tablets are created, and a lot of the APIs that struggle with that. What we've done is create a technology that allows it to be easier for them and solve a lot of their challenges. We hold a lot of patent families around the application of the technology. I wanted to touch on some of the highlights that we've had for the first half of this year. We've completed our palatability trials, which is the taste test trial within a dog population. This was done with Kemin Industries. It was done on a very large scale for dogs to test the actual palatability of the products. I'll go through the results as we go along, it was created incredibly successfully and also showed that we were able to mask bitter ingredients.
Most APIs have a very large bitter taste to them when they're actually taken away from just being in a pill. Being able to mask that flavor is a really critical element to being able to dose not only humans, but also animals. Our first human trial is planned and ready to execute on. We've set it all up and it will start next quarter. We've completed a preclinical diabetes study as well, widening the application of the types of drugs that we're actually able to work with, and those results will come out in the next few weeks. We've also done a veterinary clinical trial, and again, similar to the preclinical diabetes study, this is something that will come out results over the next few weeks once the clinical trial house has supplied them to us.
We've created a center of excellence in China, that is to tap into the growing amount of out-licensing that's happening within China and also tap into the speed that we're able to actually execute on getting all of these developed drugs and also products out to market. We've commercially manufactured and are in the process of delivering product to an East Asian client that's within the nutritional space. We've also got, and recently closed, an AUD 3.5 Million debt financing, that will help just continue to fund the company and continue to expand our commercialization. In regards to our team, our scientific team is led by Dr. Paul Wynne. He's got over 40 years experience in the pharmaceutical sector. Our team is made up of pharmaceutical scientists. That's the basis for what we've got.
We've also got some food technologists as well that work on the flavoring side of things. As an Australian-based company, a lot of people in this side of the world think we're just a very long way away, and we don't really have anything apart from being convicts and a lot of dangerous animals. We do actually have very good pharmaceutical scientists, and Monash University is ranked number two in the world. That's where all of our pharmaceutical scientists come from. It's where Dr. Wynne also ran an innovation center as well, and we've had them verify tests and also go through the methodologies to continue to expand on what we've got.
I touched on a little earlier, when a drug company or where the researchers are beginning to actually create a new active compound, there's a lot of work that goes into choosing the disease and then figuring out how that works. The next stage is how do you take that active ingredient and get it into a product that can actually be used by the consumers? The biggest struggle becomes the solubility of those ingredients or the actual, whether they're sticky or oil soluble as well. Those challenges mean it's really hard to actually formulate and it also impacts heavily on whether the actual drug is going to be absorbed by the body and is going to be effective.
There's over 40%-60% of marketed drugs are poorly soluble, out of the new drugs that are coming through, over nearly 90% of them are actually also poorly soluble, which means it's really hard to actually be able to get within the body and get the absorption there, because if it's not soluble, the body can't actually absorb the active ingredient and it won't be as effective. Most pharmaceutical companies are spending a lot of money, so many billions of dollars, AUD 4 billion-AUD 7 billion there, on actually trying to work on technologies that can really improve the absorption, and improve the solubility of those drugs. In regards to the patent cliff, a lot of people within the life science space will be well aware of the patent cliff that's happening at the moment.
That's when a 90% revenue drop essentially happens when a drug comes off patent and biosimilars or generics come onto the market. Having a different platform, having a different way to present those active ingredients also becomes something that can expand on their existing patent life cycle. In regards to the consumers, obviously, they're the ones that we're going to create the products for. Just because you create a drug, it's got to be able to be something that people are actually going to take. Over 40% of people struggle with existing technologies like pills and capsules and struggling to swallow them, which obviously leads to a lot worse outcomes, but also to doctors prescribing other medications that are going to be easier for them to actually be able to execute on.
Gelteq technology was designed to be able to work with drugs and active ingredients that are difficult to absorb by the body, that have poor solubility, where you've got a struggle on the actual dosing size as well, and then they're not necessarily able to be dosed consistently. I'm going to try and play a video from Dr Wynne, so bear with me while I see if this actually works.
I'm Dr Paul Wynne. I've been an applied chemistry professional for 40 years, with most of that time spent working with drug metabolism, delivery, and analysis. Gelteq works with a proprietary blend of gelling and thickening agents. The gels have a water content that mirrors the body, and so we set up an environment for rapid and reproducible absorption. These characteristics alone can redefine how we think about an oral dose in both the pharma and the supplement spaces. The natural soluble fiber that underpins the gels is non-calorific, but has the benefit of aiding healthy motility while delivering active substances. The gel is also a natural mucoadhesive. It sets up a boundary layer that provides more favorable contact time and chemistry for absorption at the intestine surface.
We also take the view that if we can stabilize emulsified drugs so that they can be better absorbed while using less of the harsh emulsifiers that impact the microbiome, that this is a holistic step towards better treatment.
That was just more to give you a little bit more understanding on some of the more intricate science itself on the actual gel base. In regards to our solution, we really sit at the intersection of the three major areas from a pharmaceutical company's needs, which is the drug solubility, the product differentiation, and patent life cycle, as well as the improved patient compliance. Rather than look at us as creating a new category, we're actually really addressing the needs of these pharmaceutical companies. When we look at our technology and some of the trial results that we've got, this was a trial done with a water-soluble drug where we could actually show an improved absorption.
Not only did we have a higher peak there, which shows a much faster release, so up here, which is the Gelteq gel with the water-soluble drug, compared to a reference drug. This is already a drug on market with the FDA approval. We also showed a greater area under the curve, which is the improvement of the actual drug's absorption. This whole area underneath gives us a higher percentage of absorption, which means the body will absorb a greater level of that drug, but also absorb it faster and quicker as well. In regards to that, we had a 40% improved bioavailability, improved absorption of that drug within the body itself, and then also a much faster one as well.
Now, we've repeated that style of study with an oil-based drug as well, and the difference between those two is that the oil drugs themselves are something that is much more difficult for the body to absorb. It takes a while for the body to be able to create and break down the oil globules that work within the body, and the idea is that we're able to actually disperse that before it goes into the body, which makes it easier, less bile salts to be able to break it down. When we did that, the difference is we have a much more rapid absorption of that oil base, which means the body's getting much more of that drug as well, so it becomes a more effective drug itself.
In that first hour, we had a 300% improved absorption of an oil-soluble drug and over 20% improved overall absorption of that drug. What that's doing is meaning more of that is getting absorbed by the body, so it's more effective as a drug going through there, and also shows that as more of the oil-based soluble ingredients need to be put into something, there's an effective way for them to actually get absorbed. We can display a product in various different forms. We can have it in pouches, we can have it as a syringe, we can have it where powders go into a gel separately, and also things like gummies as well. It doesn't have to be just one set. We've got all different ways that we can display it. As Paul touched on, our gel base itself is non-nutritive.
There's no energy content to it. As a base, it is very neutral. It's allergen-free. It's also able to be kosher, halal, and work across all different religious denominations as well. There's nothing to it. It's a soluble fiber that passes through the body as a waste product. The ingredients that go into them, whether it's the drugs or nutritional ingredients, they're the ones that create whatever impact it is to what they're needing. Whether there's energy that goes in for that or whether there's just the drug itself. We're not dependent, unlike most sort of pharmaceutical companies, on one single molecule. We're able to work across a large range of pharmaceutical ingredients and give ourselves many more opportunities to work across both human, animal, as well as just general consumer health products.
That makes it easier for us to be able to execute as well as going across the different opportunities that we've got. When we look at this as a company, we've got a wide range of existing APIs that we're actually working with and have been putting through different trial bases to be able to showcase our platform's ability to work with various drug classes. Each of those different drug classes gives us a way to demonstrate the capabilities to larger pharmaceutical companies, as well as utilize it with different nutraceutical companies. We choose our APIs based on the market needs, the demographic that need them, and also the size of the market that they go into.
These are ones that as we develop and expand on, they'll be ones that we can license out to pharmaceutical companies to be able to work on, and advance them through those trials. We've got clinical, preclinical, and a wide range of different options, both for humans and animals. I'm going to just take you through a few of our different candidates and where they're at at the moment. One of ours from a veterinary candidate, which is an antiparasitic. We've already had a suitability petition with the FDA approved, which allows us to go down the fast track pathway for bioequivalence there. We've done the development of the product. We've done palatability studies, and I'll go through those results shortly. As well as we've already put their clinical trial in place.
On the back of those results, we'll analyze them, and if we need an additional trial, we'll be able to do that. Our plan is to target a submission later this year with the FDA to have a pharmaceutical antiparasitic on market that we can again license out to larger pharmaceutical companies. In regards to palatability trials and these results are something that really showcased how our actual technology can be adopted. Here we've got three different gels, and each of those had different ingredients that went through them. Also these ones here are the existing premium kibble that Kemin Industries chooses. They're one of the number one flavor houses around the world to be able to flavor and put palatants out.
What we did was we put down two bowls, or they did, through their trial group, which is two different bowls of kibble, one with gel on top, one without. Reasonably simple as a concept. Put both of them in front of the wide consumer worth of dogs, where they're allowed to choose and consume whatever they like. Over 95% of the dogs chose the gel-based ones first. That just showcases the smell and the texture that comes from it. Then on top of that, they weighed the bowls at the end of that as well, which showed how much of each bowl was consumed as it went through by the end of the trial. These are the results for each of them as to how much percentage of each of the bowls were consumed of Gelteq's one versus the standard premium kibble that was used.
Results that Kemin have never seen ever before in any of their trials to have over 95% consumed just of ours compared to that based on weight. From the point of view of the adoption of the animals, and it's not just one, it was, I think each of these groups had over 20 dogs in each one. To be able to showcase that across there and include ingredients that are not pleasant to animals was a really impressive trial result to showcase that this really allows us to take this product and adapt it into the market. Separately, we've also got a human-based one. We've already done the development for that product. We've already done preclinical trials to showcase the absorption. We've got the human trial underway, and the plan would be to target a late 2026 or early 2027 submission there.
Our goal is to target from this one, the antihistamine drug market, which continues to grow, and is already worth over AUD 300 billion as well. Something that we're trying to put out there, and this is obviously a market that works heavily with children, but also adults that take that medication daily. Most of our products, we're trying to have ones that are ones that people take daily so that something that can be easier for them to consume. The next opportunity and one that we're working through at the moment is really the opportunity where people are at most pharmaceutical companies and generally the consumer are wanting ways to go around the idea of injectables, and be able to take it into the oral space.
For us to be able to stabilize those oral ingredients, whether they're peptides, whether they're complex biologics, is something we're working through at the moment to be able to showcase where that system goes. The fact that we've got a lot of our trials already underway, our development team's got the ability to be able to work on these as we're going through. We're working through the formulations. Obviously, from our point of view, we're targeting the compliance, the ease of use, and we feel like this is something that will expand over the next few months where we're able to start showcasing where we're at and how we're actually able to deliver that as an option to pharmaceutical companies.
In regards to our center of excellence, we're targeting that on the basis that over AUD 60 billion in Q1 alone this year was actually out licensed from China itself from a technology point of view. It's become the hub for pharmaceutical companies to take on the developed IP and be able to take it into development. We've got our own center of excellence, our own lab, our own scientists that are working there that we instruct and oversee from Australia, and they continue to work through. The point of that is simply to scale and to get to market more products quicker, which is always a struggle when your team is smaller in Australia. In regards to where we're at, we've really evolved from just being a development company where we're developing a technology.
We're starting to actually execute and show that we're a platform that's ready to start actually being adopted and being taken up. We've already validated it with Monash University. We've got products ordered and manufactured and being delivered, and we've also got the clinical validation as well that we're working through and continue to expand on. How do we monetize all of this? We've got multiple avenues of it. Being the technology base, we can work across multiple areas. We've got research and development fees, which works with most pharmaceutical companies to be able to start the development on their novel compound and be able to work through it. We also have manufacturing revenue, where we manufacture those products for them.
Royalty and licensing revenues, which is the bigger area for us to be able to expand on and be able to take products to market that way. In regards to our milestones and what we feel are sort of catalysts that are really going to set us up over the next few months itself, we've got the human clinical trial that's beginning next quarter. We've got our veterinary clinical trial results expected in July, and then an application later this year to the FDA. We've got results for the preclinical diabetes trial, which sets us up to work through both human and animal side of things there next month. Products are being delivered to a commercial client already, that'll actually start the revenue cycle and allow us to keep funding the company as well.
We've got the last tranche of the funding that we secured to be approved by shareholders tomorrow night, we've obviously got additional IP that continues to be filed and continues to be accepted within all the different regions around the world. Given I got the sign, I've sort of sped up a little bit. I open to questions. Drugs that are not already in market. We're not creating the drugs. We'll work with people that have either already created in their research labs or they're already approved FDA drugs. It depends which one. We're not creating the drug itself. Do I have any other questions? Yep. Yeah. We wouldn't sell. It'd be a royalty-based model. Each product going out based on using the technology through the delivery of that, we'd have a royalty through that side of it.
There's normally an R&D fee up front, there's a manufacturing amount, and a royalty that goes to each of them. We're able to continue the life cycle of every developed product to be able to monetize it each way through the life of the product. It just depends. Every product's got a shelf life. We're no different to standard sort of drug shelf life. It can last a year, two years, depending on however long the person wants that to be used. We just put it on stability, and we've shown we've got two years shelf life without much of an issue. No, it's okay. We've already got manufacturing lines that we've already created with manufacturers, so contract manufacturing setup. We do essentially have that set up already. I've already got the one-minute sign. I think it's last question.
That one there. Yeah. There's two parts to that one. One is it gets you an additional IP, which allows you to have additional cycles to be able to protect with that dosage form. On top of that, if you've got improved bioavailability, the idea of any generics coming in is going to be very low because if there's a better way to deliver it, doctors will prescribe the better way to do it. It actually helps prevent a lot of those generics coming in. There's two parts to that one. Thank you everyone. If you've got extra questions, you can come to the booth at any time.