Beauty is better with biotechnology. Arcaea’s announcement that it acquired Gadusol Laboratories, an Oregon State University spinout, is the latest proof that more companies are betting on biotech to solve a range of nagging issues that have plagued formulators for years. These issues include, but are not limited to, sourcing, sustainability, cost and efficacy. Executives at both companies note that biotechnology can reduce damage to the environment, cut down on water use, save on shipping costs and even improve traceability.

In the past few years Croda and Silab expanded their biotech capabilities to create skin care actives. And Unilever and Genomatica recently launched a $120 million biotech venture to develop palm oil alternatives. Now Boston-based Arcaea is harnessing Gadusol’s synthetic biology technology to produce the natural sun protective compounds found in marine life.

“Our mission at Arcaea is to make biotechnology the most desirable platform in the industry,” explained Arcaea CEO Jasmina Aganovic. As founder of Mother Dirt, Aganovic has long championed biotechnology’s benefits.

Arcaea was formed in 2021 and its investors include Givaudan, Chanel, Olaplex and Viking. Arcaea was incubated at Ginkgo Bioworks, a Boston-based, horizontal platform for cell programming. 

“When we looked at Gadusol, we recognized its superior technology platform,” recalled Aganovic. We saw how Gadusol can improve consumer experience and product efficacy. And that’s not just for UV filters.”

The admiration is mutual.

According to Gadusol Co-Founder and CEO Katie Pettinger, her team was impressed with Ginkgo Biowork’s mission which is enabling biotechnology applications across diverse markets, from food and agriculture to industrial chemicals to pharmaceuticals. That opened the door to deep conversations with Arcaea over several months, which ultimately led to the acquisition. The Gadusol team, led by Pettinger, will join Arcaea.

“Katie and I describe this acquisition as the culmination of a perfect storm,” recalled Aganovic. “We know that there is a critical need in the marketplace for environmentally-friendly UV filters.”

According to Pettinger, organic UV filters on the market have been shown to have harmful effects on marine environments. As a result, some local governments have issued bans on organic sunscreens. For example, a ban on “non-mineral sunscreen” goes into effect in Hawaii’s Maui County on October 1. More than two years ago, FDA published results of a study that concluded chemical sunscreens enter the bloodstream.

“As a result, there’s been a shift to mineral sunscreens,” noted Pettinger. “But they have formulation issues; they leave a white cast on skin.”

Using zinc oxide or titanium dioxide makes it virtually impossible to create transparent sunscreen formulas, she added.

The Benefits of Biotech

The benefits of Gadusol technology go beyond UV protection. Aganovic noted that industrial chemistry helped the beauty industry grow to a $500 billion business during the past century. 

“But it can’t sustain the next phase of growth; chemistry puts pressure on sustainability,” she insisted. “Biotechnology is more than utilitarian. It is a design tool that enables us to tap into the tree of life. That’s where we get excited.”

For example, Aganovic recalled how hyaluronic acid was once sourced from rooster combs and streptococci. Harvesting from rooster combs is complex and costly. Streptococci are difficult to genetically manipulate and require complex media for growth. Both sources have potential problems with unwanted by-products, such as allergens and toxins. These problems can be solved by producing the HA with safe bacilli that are expressing a recombinant HA synthase (HAS).

“Scientists started to understand they could manipulate hyaluronic acid and that created a proliferation of HA. We want to do the exact same thing for other materials,” explained Aganovic.

For example, Aganovic suggested that by manipulating keratin and other hair care proteins, researchers will be able to create materials and products that deliver specific product attributes.

Long Journey Ahead

It’s a promising, but arduous journey that will require significant investment. Pettinger said one of the things that made this partnership so attractive to Gadusol is the depth and breadth of Ginkgo Bioworks’ expertise.

“There are challenges of fermentation scaleup,” she said. “It is tough to find a partner who has a solution to commercialize this exciting molecule which has so much potential.”

Pettinger pointed out that university researchers don’t have the robotics and other technologies in place to complete a project and then match the industry’s high demand for sunscreen alternatives.

At the same time, biology represents a pretty large leap from chemistry, according to Aganovic.

“My experience at Mother Dirt taught me that,” recalled Aganovic. “I didn’t perceive it as being all that complex. Intellectually big companies get it, but not operationally. And evaluation is challenging.”

So is the shift in skill set. Aganovic pointed out that biotechnology is more than just fermentation. It is a suite of technologies, including DNA sequencing, synthesis and design. As a result, companies may not have access to the technology and infrastructure that’s needed to process this information.

Finally, there’s all the chatter about genetically-modified organisms (GMOs).

“GMO is top-of-mind with consumers,” noted Aganovic. “That influences the attitudes of company executives.”

As a result, Aganovic couldn’t provide a timetable as to when such biotech-based beauty formulas will reach consumers. But as she noted, change begins when companies deliver something of value to consumers.

“When we do that, things start to change. It won’t happen overnight. We view this as a beginning for an industry,” concluded Aganovic. “We start with the question, ‘What can biology do that chemistry cannot?’ When people recognize that, the biotech industry will thrive.”