Coraliotech, Biotechnology on the Up...

A start-up offspring of MonacoTech, Coraliotech produces and sells molecules derived from corals and their ecosystems that have numerous benefits for the skin (anti-oxidant, anti-ageing, protection against environmental toxins)... Now the next step for the dermatological company is to target the pharmaceutical market.

Corals have exceptional therapeutic potential, and Coraliotech intends to develop this. "They are subject to frequent physical changes (sea warming, solar radiation, etc.), chemical changes (pollution, oxidation, salinity, pH, etc.) and even biological changes (predators, bacteria, algal invasions, etc.). To combat all of these various types of stress, they have developed a whole arsenal of defensive, structural and regulatory molecules, enabling them to resist diverse threats and continue their development", explains Rachid Benchaouir, founder of the Monaco-based start-up.

In 2015, the medical biology researcher participated in the genetic sequencing of Mediterranean red coral at the Monaco Science Centre. The discovery of a molecule that could help protect the skin from ultraviolet rays or toxic chemical agents, as well as having anti-ageing properties for the skin, led him to set up his own business.

A database of 12,000 useful genetic sequences

Created at MonacoTech in 2017, Coraliotech is tackling the wellbeing and healthcare market, with its sights set on the pharmaceutical sector in the longer term. In recent years, Coraliotech, in which CSM has a stake of around 10%, has undergone a battery of tests (in particular to check that the molecules produced retain all their functions when mixed in a complex formula). Using a cloning technology that leaves living ecosystems untouched, Coraliotech uses DNA to produce identical molecules in bioreactors under artificial conditions. The start-up now has a catalogue of 1,500 molecular families. "Sometimes there are several genetic sequences per family, and we end up with a database of almost 12,000 usable corals, mangroves, macro-algae and micro-algae that are both natural and symbiotic (i.e. that live in corals)!”

Making the transition to production

Today, two products are on the market and four are being developed in the fields of anti-ageing creams, skin protection such as depigmentation, anti-wrinkle, and sun protection. The first customer is the Swiss cosmetics brand Margy, based in Monaco. “We've raised the funds to set up a 500 sq. metre laboratory in Fontvieille in September or October, which will enable us to move from R&D to production in the first quarter of 2026,” says a delighted Rachid Benchaouir, who is in the process of making the transition to production. "We also have a big contract with Grogenics, a company that uses washed-up seaweed (sargassum) to make compost for agroforestry, but realised that it was severely contaminated with heavy metals. The company commissioned us to find enzymes that could remove, or at least drastically reduce, the effect of heavy metals", explains the entrepreneur, who expects to increase his annual sales from €400,000 to €3 million by 2026. 

Initial contact with Emmanuel Macron

"Over a year, we should produce around ten kilos per product... One kilo of Coraliotech ingredients is used for one tonne of finished cosmetic product. It's a highly concentrated active ingredient" explains Rachid Benchaouir, who made the most of the Blue Economy & Finance Forum and Emmanuel Macron's State visit to launch some interesting avenues for development. "I spoke to the French President about implementing the technology invented in Monaco. These cultivation and sequencing laboratories could provide local jobs for researchers and technicians, and encourage an ethical and equal redistribution of the benefits of applied research." Is Coraliotech looking for subsidiaries or partnerships? The discussion is open. “Gulf countries affected by global warming could be potential candidates,” says Rachid Benchaouir, who is raising €4.5 million to open a laboratory for production, developing new molecules and taking on personnel.

For Coraliotech, the big challenge remains getting its pharmaceutical business off the ground. “Whether in the field of oncology (anticancer agents), microbiology (antibacterials and antivirals), dermatology (psoriasis, dermatitis, and skin irritations), osteology (bone regeneration) or inflammation, active coral ingredients are able to cover a very large number of pharmacological applications.” At the same time, Rachid Benchaouir will be pursuing coral research in a new laboratory - located in the port of Fontvieille - and is focussing on forging partnerships with researchers around the world.

By Milena Radoman - Monaco Economie