Zumbani Project Business Proposal - DRAFT - GC0108

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Commercialisation of Herbicure Zumbane Products

Table of Contents
Preamble................................................................................................................................................................. 2
Project Summary................................................................................................................................................. 2
Product range, uses and benefits.................................................................................................................2
Background........................................................................................................................................................... 3
Objectives of the Project and implementation plan............................................................................4
Project Description............................................................................................................................................ 5
Industry and Market Dynamics.................................................................................................................... 6
The global herbal market............................................................................................................................6
The local and regional markets................................................................................................................7
Herbicure’s target market............................................................................................................................... 7
Market strategy.................................................................................................................................................... 7
Financials............................................................................................................................................................. 10

Preamble
Midlands State University intends to form and support a start-up business focused on
producing novel Lippia javanica (Zumbane) products. Along with the vaccines and other
anti-viral therapy options, these include a rub, nasal spray, bug repellent, and inhaler
that will act as adjuvant treatment for Covid-19-related and other upper respiratory

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infections (URIs). It will also sell Zumbane essential oil extract, which can be used as an
ingredient in cosmetics and other products. The new business will be registered and run
under the name 'Herbicure.' Zumbane and other ingredients were used in various
formulations in the products. The products are on technology readiness level 7 because
they have already been manufactured and registrations with the Traditional Medicines
Association are in the works. The next stage of the project entails performing stability
tests, assessing toxicity, and determining the composition of microbial and heavy metals
as required by MCAZ.

Project Summary

Name of company Herbicure


Ownership/Shareholding Co-owned by the originators and the
University (Commercialisation policy)
Nature of Business Herbal medicines and cosmetics
Employment creation and 13 jobs created in the company.
enterprise development
Environmental and health Formulations include natural ingredients with minimal
considerations side effects
Key Stakeholders Pharmacies, patients affected by URIs, government,
hospitals and clinics

Product range, uses and benefits


Herbicure created three safe and convenient herbal products: a rub, nasal spray, and
inhaler that will be used as adjuvant treatment for Covid-19-related and other URIs, in
addition to the vaccines and other anti-viral therapy options. We also have an essential
oil extract that can be used as an ingredient in cosmetics and other products, as well as a
bug repellent that is especially effective against mosquito bites. The product value
proposition of Herbicure is based on the belief that the general public should be
provided with organic alternatives such as herbal products delivered through a process
that they can trust and are familiar with. Table 1 lists the products, as well as their
applications and benefits.

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Table 1: Herbicure’s product catalogue and value proposition

Background
Global incidence of upper respiratory infections (URIs) reached17.2 billion in 2019 and
accounted for 42-83% of all cases from the study Global Burden of Diseases, Injuries,
and Risk Factors between 1990 and 2019 1. The global outbreak of Covid-19 worsened
the statistics with at least 90% of the global population acquiring the infection at least
once and a global mortality of 14.9 million between 2020 and 2021 2. The Covid 19
associated mortality was at 5469 in Zimbabwe as of 4 May 2022 3. Although herbal
remedies such as the use of Lippia javanica (Burm.f.) Spreng. (Zumbani/Umsuzwane)
have been reported to significant alleviate URI symptoms, the lack of research,
documentation and registration of phytomedicines from such plants have delayed their
validation by regulatory organizations such as the World Health Organization (WHO).
This motivated this research on Lippia javanica and the development/manufacturing of
L. javanica rub, nasal spray and inhaler to be used as a complementary drug to
combat severe Covid-19 and other respiratory symptoms. This is also in response to the
statement by the Africa Union Centre for Disease Control and Prevention (CDC) on
herbal remedies, that research on efficacy and safeness of herbal supplements for
Covid-19 treatment be done, along with registration of medicinal outcomes.
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chrome-extension://dagcmkpagjlhakfdhnbomgmjdpkdklff/enhanced-reader.html?openApp&pdf=https%3A%2F%2Fwww.thelancet.com
%2Fpdfs%2Fjournals%2Feclinm%2FPIIS2589-5370(21)00266-2.pdf
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https://www.who.int/news/item/05-05-2022-14.9-million-excess-deaths-were-associated-with-the-covid-19-pandemic-in-2020-and-
2021
3
https://covid19.who.int/region/afro/country/zw; Accessed 6 May 2022

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Additionally, we used the distinct properties of Lippia javanica4 to make a novel bug
and insect repellent in the form of a jelly formulation. This formulation particularly
joins the fight against malaria, which affects 250 million people and kills about 2million
annually5.

Lippia javanica (Burm.f.) Spreng. (Zumbani/Umsuzwane) of the Verbenaceae family,


is an erect woody perennial herb or shrub of up to 4.5m tall. It occurs naturally in
central, eastern, and southern Africa (Maroyi, 2017). The plant has strong aromatic
leaves which give off a lemon-like fragrance when crushed, hence the common name
lemon bush or fever tea. Lippia javanica has become very popular among Africans in
general and Zimbabweans in particular, who have been taking all possible steps to
protect themselves against Covid-19. Most people believe that the herb has health
benefits have been taking Lippia javanica herbal tea to protect themselves and to
manage the symptoms of URIs such as asthma, coughs, colds, influenza, pneumonia,
tuberculosis, and bronchitis as well as gastrointestinal problems. Some administer
the supposed medicinal properties of the plant through steaming (Bhebhe, 2015). In
Zimbabwe, Lippia javanica has been widely championed as a Covid-19 treatment
although no confirmed medical assurance has been issued by the government’s medical
experts.

Although Covid 19 vaccines have been formulated and used in many countries, there
have been mixed feelings within the Zimbabwean public regarding the acceptance of the
vaccine. This has led to most of the Zimbabwean communities resorting to some herbal
formulations. Alleged Covid-19 patients are said to have been healed after inhaling the
plant’s steam covered with a blanket, a process known as Kunatira in Shona. The World
Health Organization (WHO) warned individuals that steam inhalation therapy carries a
risk of burn injury6. Although studies (for example, Little et al., 2016)7, have shown that
steam therapy can help thin mucus as a supplemental course of action to give some
relief when grappling a cold or flu, there is need for safer methods of administering the
medicinal properties of Zumbani.

Objectives of the Project and implementation plan


The major goal for this last phase of the incubation of this project is to land the
products on the market. Table 2 details the specific objectives.

https://www.researchgate.net/publication/26757181_Lippia_javanica_Burm_F_Spreng_Its_general_constituents_and_bioactivity_on_mo
squitoes
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https://www.si.edu/spotlight/buginfo/diseases
6
www.who.int/docs/default-source/coronaviruse/clinical-management-of-novel-cov.pdf
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Little, L., Eidesen, P. B., Müller, E., Dickinson, K.J.M and Lord, J. M. 2016. Thermal time course for Pleurophyllum criniferum on Campbell
Island (2010-12-06). PANGAEA, https://doi.org/10.1594/PANGAEA.862004, accessed 15 February 2021.

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Table 2: Phase 2 objectives and implentation strategy

Objective Implementation details Remarks


To carry out final tests Independent subcontractor Even though Herbicure
and improvements on to carry out stability tests to currently meet the
product, packaging ascertain shelf life, evaluate requirements for the
and labels. toxicity and assess microbial traditional medicines
and heavy metals registration, it is anticipated
composition. that the products be
Herbicure to carry out compliant with the
recommended Medicines Control Authority
improvements. of Zimbabwe (MCAZ)
Amount requested: $3,500 specifications.

To obtain and install (Detailed equipment list in Currently using lab-scale


production equipment excel attachment) equipment with no capacity
Amount requested: $14,325 for commercial production

To conduct start-up Start-up period for 3 months This period will confirm the
sales in herbal during which we will results of preliminary trials
pharmacies, while produce and conduct sales and help with initial
registering with MCAZ over herbal pharmacy marketing of the products.
counters. We will also carry
surveys for all users to
evaluate the efficacy of our
various products.
Amount requested: $6,500

To launch the After successful registration After registration with


products officially and with MCAZ, we will have a MCAZ, the formulations will
disseminate results of launch day for the products, be marketed as medical
trials followed by dissemination of products
results through publications, All the requirements from
media and various marketing various platforms (e.g. labels
avenues information, registration as
Amount requested: $3,025 suppliers) will be followed.

Project Description
Researchers at MSU embarked on a research exercise to bridge the gap between claims
of medicinal effects of L. Javanica and its official acceptance (Phase 1). Subsequently, 3
safe and convenient herbal products were developed: a rub, nasal spray and inhaler that
will aid as adjuvant treatment to Covid-19 and other URIs, alongside the vaccines being
administered and other anti-viral therapy options. We also have an essential oil extract
that can be used as an ingredient in cosmetics etc. and a bug repellent to particularly
mitigate against mosquito bites. Herbicure’s product value proposition is based on our
belief that the general public should be provided with organic alternatives such as
herbal products delivered through a process that they can trust and familiarise with.

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An adequate profile of phyto-chemicals available in the herb were extracted and safe
compositions of the products were formulated, with accompanying guidelines for use
that will be printed on the administration notice, along with the ingredients. We carried
out preliminary trials with 40 volunteers with 87% registering significant responses to
our products. Effectively, our products are at technology readiness level (TRL) 6. They
have been tested for composition (microbial, heavy metals), toxicity & use (preliminary
tests) and are currently being registered with the Traditional Medicine Association as
required by Zimbabwean law for herbal remedies. However, to reach the market (Phase
2), we still have a number of activities and compliance measures to carry out.

Industry and Market Dynamics


The global herbal market
The World Health Organisation (WHO) indicates that between 75 and 80% of the
world’s population rely on herbal medicines to meet their primary health care needs 8.
Consumer patterns are shifting towards traditional medicines and herbs, which have
less side effects than purified drugs9. For instance, today, pharmacies in developed
countries sell plant derived drugs over the counter. The global herbal medicine market
size was USD 185.86 billion in 2020 and was projected to grow from USD 230.03 billion
in 2021 to USD 430.05 billion in 2028 at a growth rate of 11.32% during the 2021-2028
period10. Fig 1 shows the dominant markets as at 2019, as reflected by bubble sizes.
Africa probably has lower market growth rates as the herbs are inherently a part of
native tradition. However, a number of African governments, including Zimbabwe, are
realizing the value of indigenous knowledge system to the health economy and
investing in their valorization11.

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https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5442578/
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https://www.tradezimbabwe.com/newsrelease/time-to-harness-potential-in-traditional-medicine/
10
https://www.fortunebusinessinsights.com/herbal-medicine-market-106320
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https://www.tradezimbabwe.com/newsrelease/time-to-harness-potential-in-traditional-medicine/

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Figure 1: Regional Analysis by form i.e. liquid, powder or whole herb.

The local and regional markets


The International Trade Centre (ITC) said that the shift in consumers’ preference to
natural health products presents an export opportunity for least developed countries.
This calls for sustainable production of export grade herbal products. Even in
Zimbabwe, there has been a distinct demand for medicinal and aromatic plants, inspired
by increased marketing and supply of herb based health care formulations, cosmetics
and nutritional supplements. Most of these products are based on exotic herbal species
such as aloe vera, mint, basil and parsley. However, the recent experience with Covid 19
and native herbs such as Lippia javanica that received a global endorsement, along with
other renowned immune boosting species such as moringa and blackjack have made
traditional herbals more popular in the local market 12. Furthermore, there is increased
government and donor funding support for the production and marketing of such herb
formulations premised on indigenous knowledge.

Herbicure’s target market


The target market is primarily the local Zimbabwean population who succumb to any of
the mild to critical URI conditions. We however plan to also register the products for
export within the regional (Southern Africa) and also the global market.

Market strategy
We will initially enter the market by retailing our products to herbal outlets such as
Greenworld pharmacies. We plan on opening our own branches that will sell herbal
healthcare and cosmetics products. We will use testimonials from users to for further
advertizements of the herbals on various media platforms such as National television,
Central FM, Star FM, Zi FM, Sunday Mail and the Herald. We will also feature our
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https://www.tradezimbabwe.com/newsrelease/time-to-harness-potential-in-traditional-medicine/

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products on our MSU website, Facebook and innovation promoting websites such as
ELISA, who have already invited us to showcase them. After registration with MCAZ, we
will move into supermarkets, pharmacies and various shops. We also plan on carrying
out affiliate marketing, when our product brand has gained enough momentum. Since
we already have sanitizers and still water on the market, it will not be difficult for us to
register the supply of these other products, after MCAZ approves. By year 3 of
successful local herbal production and sales, we will obtain export licences targeting
markets in North & Latin America and Europe.

Implementation Plan
Table 3 furnishes more details on the work plan and timescales. We expect that the
pre-commercialization activities should take only 4 months (time to market), after
which our products will be sold as a traditional medicine in herbal pharmacies (M4) and
subsequently in the expanded market (M7). Zumbane fresh and dry plants will be
bought from subcontracted collectors at $0.50/kg . Entry into the expanded market will
require compliance with MCAZ and suppliers requirements by various platforms. We
have already received documentation on the required registration and compliance
protocols for complementary drugs.

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Table 3: Work plan for Phase 2 of Herbicure

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11M12
WP1 Product testing and improvement
Task 1.1 Subcontract tests on critical parameters (Table 2)
Task 1.2 Subcontract design of product labels and finalize on packaging
WP2 Purchase and installation of equipment
Task 2.1 Procure and assemble required machinery
Task 2.2 Conduct production tests and optimize on operating parameters & ergonomics.
Task 2.3 Produce at least 500 samples for herbal market
WP3 Regulatory compliance & market entry
Task 3.1 Set up sales platforms with herbal pharmacies (open 2 outlets for medicines & cosmetics)
Task 3.2 Carry out follow up surveys on customers to assess efficacy
Task 3.3 Complete registration with MCAZ and inspection of production facilities
WP4 Market expansion
Task 4.1 Product launch into wider market (mid month) with various stakeholders
Task 4.2 Marketing and Dissemination of results from herbal sale platforms in WP3
Task 4.3 Manufacture at least 1000 bottles of each product ahead expansion into pharmacies & supermakets
Notes:
*Equipment purchase orders to be made at beginning of Gannt period (soon after funding).
*Sales effectively start in M4 in herbal pharmacies, but in M7 for the expanded market

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Financials
The funding budget is detailed in table 4, while table 5 projects the expected cash flows
in terms of profits

Table 4: Project funding budget


ITEM QTY UNIT COST (USD) TOTAL COST
(USD)
Operational cots 3000
SUBTOTAL 3000

A. EQUIPMENT
Essential oil distiller (100litre) electricity powered 2 4000 8000
Water distiller (20 litres per hour) 1 500 500
Microbial incubator (70litre) 1 1200 1200
Hot water bath (60 litre) 1 600 600
Analytical balance 2 400 800
Mixing bowl with dispenser (10 litre) glass 4 60 240
Electric homogeniser 4 30 120
Testing and MCAZ registration 5 300 1500
SUB TOTAL 12960

B. RAW MATERIALS AND CONSUMABLES


ITEM QTY UNIT PRICE TOTAL PRICE
White soft paraffi n (kg) 100 10 1000
Symbiosolv essential oil solubilizer (l) 10 20 200
Dead sea salt (kg) 2 20 40
Eucalyptus oil (l) 2 20 40
Peppermint oil (l) 2 25 50
ethanol (l) 20 15 300
Pine oil (l) 2 23 46
Inhaler packaging containers 1100 0,3 300
Rub plastic containers (10mls) 1100 0,1 100
Essential oil packaging amber bottles (10ml) 1100 0,1 100
Bug repellant containers (10
Nasal spray amber bottles (30ml) 1100 0,15 150
Mcconkey (500g) 1 220 220
Mueller Hinton (500g) 1 250 250
Laboratory tissue (rolls) 6 30 180
Methylated spirit (l) 10 10 100
Test tubes 100 0,1 10
Spatula 10 0,1 1
Measuring cylinders 5ml 3 0,5 1,5
Measuring cylinders 250ml 3 2,5 7,5
Measuring cylinders 1000ml 3 5,75 17,25
Measuring cylinders 2000ml 3 9 27
Cotton wool (Kg) 10 3 30
Bunsen burner 5 5 25
Petri dishes (box) 5 220 1100
Latex gloves (box) 10 10 100
Essential oil amber collection bottles (2.5l) 10 7 70
Labels for each product (1000) 6 100 600
Construction of drying shed (3x3mx4m) with 5 mesh shelves
1 on either side, shelves to be
3000
30 cm in height
3000
and 1 metre deep
Liquid soap (l) 20 15 300
SUB TOTAL 8365,25
TOTAL FUNDING 24325,25

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According to preliminary costings done, the zumbane rub, nasal spray, inhaler and bug
will be sold at $2 each with an average profit of 30% above the production costs
(~$1.50 per 100g or 100ml). The Lippia javanica oil will be sold at $1.23 per 100ml. The
projected sales and profits are presented in Table 5.
.
Table 5: Projected sales and profits
Y1 Y2 Y3 Y4 Y5

Rub, inhaler, spray & repellant sales 8000 12000 16000 18000 20000
Profits $ 4 000,00 $ 6 000,00 $ 8 000,00 $ 9 000,00 $ 10 000,00
L. javanica oil 2000 3000 5000 6000 6000
Profits $ 570,00 $ 855,00 $ 1 425,00 $ 1 710,00 $ 1 710,00
Total $ 4 570,00 $ 6 855,00 $ 9 425,00 $ 10 710,00 $ 11 710,00

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