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n e w h a v e n b i z . c o m | S e p t e m b e r 2 0 2 1 | n e w h a v e n B I Z 19 T e c h 2 5 Specialty chemical firm P2 Science developing green cosmetics, fragrances A h, New Haven, famed for Yale University and bioscience startups. But wait. Could New Haven also become a center of the cosmetics and fragrance industries, potentially an American Paris? Even the man leading business development at P2 Science thinks that's a stretch, but the elements are indisputably coming into place. P2 is a specialty chemical firm with its roots in Yale's Center for Green Chemistry and Engineering. Paul Anastas, who heads the center, and Patrick Foley, among the green chemistry center's first graduates, are the co-founders. e name — P2 — reflects their shared first initials. eir shared vision is a line of green, sustainable chemicals that can match the performance of high-end cosmetics, fragrances and polymer coatings that today are manufactured using petrochemicals in a toxic, potentially explosive batch process known as ozonolysis. Scientists at P2, working with Belgian engineering firm Desmet Bellestra, have patented a continuous-flow technology in which the reaction time is measured in minutes rather than hours and risks are sharply reduced. In 2018, P2 opened a new manufacturing plant in Naugatuck, where it is using vegetable oil to create the building blocks of cosmetics and fragrances as well as a variety of industrial polymers. Its specialty acids have applications that run from skin care to crop care. Alongside its cosmetics aspirations, P2 has a deal with food-processing giant Archer-Midland- Daniels. Early investors included Elm Street Ventures and Connecticut Innovations. But a handful of venture firms have been joined by industry heavyweights BASF and Chanel in later rounds of funding. Ryan Cheng, P2's vice president of business development, points to the firm's Citropol line of renewable liquid polymers derived from forest products. While not consumer-facing products, Citropol is a collection of ingredients that are alternatives to silicones now used in beauty products. e Naugatuck plant is turning out large volumes that are being marketed to companies making the consumer products. Cheng cites the global interest in green, sustainable products as the wind at P2's back. Consumers want green products, he said, and there's a chance the European Union may ban the use of silicones in cosmetics and other products. Cheng declined to discuss the firm's revenue but said P2 and its 26 employees are focused on expanding product lines. He said the idea of P2 going into production with its own line of beauty products is a long shot — it would require further plant expansion. However the option "remains on the table." P2 is looking for New Haven area nonprofits to join the firm's One Tree Planted initiative. e concept is straight forward: For every kilogram of Citropol product sold, P2 will sponsor the planting of a tree. e expectation is that the program will plant hundreds of thousands of trees worldwide and P2 is looking for partners in reforesting local areas. In announcing the program in Aug. 2020, Cheng said, "When customers use Citropol, they are making high-performing end products that adhere to clean beauty standards, and now they are directly supporting global reforestation." One Tree Planted estimates that a single tree will absorb one ton of carbon dioxide over 40 years aer it is planted. n Precipio Diagnostics seeks a better, more accurate way to diagnose cancer I lan Danieli, CEO of Precipio Diagnostics, shakes his head as he speaks of an incon- venient truth: Up to one in five blood-re- lated cancer diagnoses are incorrect. His company puts the economic cost of these errors and the resulting off-target treatment at $750 billion. But the human cost is beyond calculation. He points the finger at the existing meth- odology that stresses cost efficiency over accuracy and draws an analogy to an auto repair shop. A motorist who complains of a noisy muffler sets in motion a more limited diagnostic service than a motorist who simply says something is wrong. Today, when a doctor orders a biopsy, he or she tells the lab what form of cancer is suspected. e lab pathologist then looks for that cancer and returns a report. ere's a better way, Danieli says. If a doctor sends the biopsy to Precipio, the initial process involves a deeper dive into the patient's medical history and previous tests, essentially a review of the indicators that inform the doctor's basis for suspecting a particular form of cancer. e sample is then reviewed for a wider range of possible diagnoses and the results are reviewed by cancer-specific experts at academic institutions. e result is never going to be 100% accurate but Precipio says it expects to top 95% accuracy. ere are a lot of moving pieces here — including several proprietary Precipio products — but improvement starts with the people, Danieli says, pointing to the network of more than 100 subject experts at respected universities. ere is a staff of 35 working in the New Haven headquarters and clinical lab. A separate team of 10 does product research and development in Omaha; 15 others work remotely. On the business side, Precipio is facing a steep uphill climb in a field dominated by a few large labs. Danieli points to the firm's Smart Path program — a free second opinion — as one approach to winning over patients, doctors and insurers. While diagnostics is where Precipio is building a reputation, its future as a business is being built on products — from the HemeScreen Physician Office Lab program, an anemia panel test and reagents — sold on a business-to-business basis to doctors and labs. Precipio is publicly traded with a market capitalization of about $70 million. In the second quarter, it posted $2.3 million in revenue, a 65% gain year-over-year and up 29% from the first quarter. In a June statement announcing the ter- mination of an equity line of credit arrange- ment with Lincoln Park Capital, Danieli said: "We are now in a position where we have significantly extended our runway, and we anticipate that we will have the ability and the resources to rapidly grow the com- pany without further capital raises to fund ongoing operations in the next 24 months." One area where Danieli acknowledges Precipio needs to improve is in its engagement with New Haven's bioscience ecosystem. He sees innovative approaches all around that could complement Precipio's business. And the company may soon be in acquisition mode. n A look inside P2 Science's specialty-chemicals warehouse in Woodbridge. By Norm Bell At a glance Company: P2 Science Industry: Specialty chemicals Top Executive: Neil Burns, CEO HQ: 4 Research Drive, Woodbridge No. of Employees: 26 Company Website: https://www.P2.com Phone Number: 855-CITROPRO Neil Burns, CEO Ilan Danieli, CEO At a glance Company: Precipio Diagnostics Industry: Bioscience Top Executive: Ilan Danieli, CEO HQ: 4 Science Park, Fourth Floor, New Haven, CT 06511 No. of Employees: 60 Company Website: https:// www.precipiodx.com Phone Number: 203-787-7888 By Norm Bell

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