Allylix has developed proprietary technology that allows it to produce a group of natural products called terpenes at low cost. In nature, terpenes are produced by plants in minute quantities to serve a number of different functions. Some are flavors and fragrances, while others are anti-fungal and anti-viral and still others are insect repellents. Because of this, terpenes have significant commercial value to the flavor and fragrance, insect repellent and pharmaceutical industries. Despite their significant commercial value, historically terpenes have been under exploited because they are too costly to produce with existing technology. Allylix's proprietary technology platform allows it to cost effectively produce a broad range of terpenes and thereby exploit their significant commercial value. 

Allylix controls a large and far reaching set of intellectual property including 25 issued patents and multiple US and foreign applications. This intellectual property provides freedom to operate and includes claims covering structure-based composition of matter, methods, proprietary enzymes and resulting products. It also includes trade secrets that cover host strains, expression systems and manufacturing processes. 

Initially, the Company 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. Current prices for sesquiterpenes are high due to the limited supply of quality starting materials and the high cost of extraction and purification. These high prices have limited the use of sesquiterpenes to just a few high end applications. Allylix has identified a number of sesquiterpene flavors and fragrances whose markets would expand substantially if there were a low cost alternative. 

Allylix has defined an initial pipeline of nine products. The Company will have its first three products on the market in mid-2009.