ADM deal gives Nutraceutix 'freedom to focus on OTC'
Nutraceutix president and CEO, David T. Howard, has said that his company's recent alliance with agrifood giant Archer Daniel Midlands (ADM) "validates the Nutraceutix CDT platform and gives the company freedom to concentrate on OTC partnerships."
The two companies announced on 29 March an exclusive licensing agreement for ADM to use Nutraceutix's patented Controlled Delivery Technology (CDT) to develop and market dietary supplements.
Howard explained that the alliance, which gives ADM exclusive rights to market its products using Nutraceutix's CDT technology to dietary supplement manufacturers the world over, means that Nutraceutix no longer needs to pursue other nutraceutical alliances.
"Our partnership with ADM allows us the freedom to now focus our resources on and pursue partnerships with OTC and pharmaceutical companies to incorporate CDT technology into products for their respective markets," he said.
The first product to be marketed by ADM is Novasoy Daily Dose, a product which contains natural-based soy isoflavones.
Howard claimed that the latest research from Frost & Sullivan (which highlights the currently booming isoflavone sales in the US - $470 million in 2001) was a positive sign for the product, although ADM had not yet provided estimates for market size or market share.
He added: "The ability of the CDT technology platform to improve the way soy isoflavones are available to the body, particularly when there are long periods between dosings, is an important advantage in this exploding market."
Nutraceutix will be working closely with ADM on its market roll-out plans for the introduction of Novasoy Daily Dose. The Novasoy brand is already well established in the US where it is incorporated into more than 50 nutritional supplements marketed to support a range of health benefits.
Howard also said that securing an early income stream was part of the refocused Nutraceutix business plan, "which calls for that revenue to help lower our burn rate as we pursue technology development and innovation with the OTC and pharmaceutical partnerships - the products from which can be very lucrative but which often take two to seven years to bring to fruition."
Nutraceutix has reportedly suffered dramatically from September 11, with reduced 4Q 2001 revenues. Howard claims that sales have increased steadily each month of the first quarter and expects March revenues to have returned to targeted levels.