I-Tech (ITECH) ABGSC Investor Days summary

Company overview and market context

• Provides an active ingredient for anti-fouling ship coatings, addressing hard fouling like barnacles and tube worms.

• Operates with an asset-light model, focusing on R&D, marketing, and sales, while outsourcing production.

• Targets the maritime shipping industry, which is responsible for 3% of global CO2 emissions and faces regulatory pressure to reduce emissions.

• Addresses three main challenges: CO2 emissions, spread of invasive species, and chemical emissions to water.

• Market opportunity estimated at $300–$500 million, with 90% of sales in Asia, especially Northeast Asia.

Product innovation and differentiation

• Selektope, the main product, is based on Medetomidine, a pharmaceutical sedative that repels barnacles by making them hyperactive.

• Requires only 0.1–0.15% concentration in coatings, compared to 40–50% for traditional copper-based biocides.

• Proven effectiveness with over 2,500 ships treated, showing clear reduction in barnacle attachment.

• Product is sold to six of the nine largest paint companies, with a growing and diversifying customer base.

• Intellectual property and formulation know-how provide competitive protection.

Regulatory and competitive landscape

• Faces regulatory challenges in Europe due to biocide classification and concerns over endocrine disruption.

• Temporary license to operate in Europe until 2025; public consultation saw strong industry support for continued approval.

• 90% of sales are in Asia, so potential EU market loss would have limited short-term impact.

• Main competitors are copper-based biocides and Econea; some biocide-free coatings exist but are less effective.

• Ongoing R&D to improve product efficiency and expand into new market segments, such as dry dockings and complementary actives.