Diversa Corporation announced that it has signed an agreement with Cargill Health and Food Technologies to discover and develop novel enzymes for the cost-effective production of a proprietary product. Under the terms of the agreement, Diversa will receive upfront payments and research funding and is entitled to receive milestone payments, license fees, and royalties on products that may be developed.

"Oil processing and nutrition products represent one of Diversa's strategic focus areas, and we are pleased to be partnering with Cargill on this opportunity," stated Jay M. Short, Ph.D., Diversa's president and chief executive officer. "We are targeting the development of a novel, differentiated product through the combination of our industry-leading enzyme product-development platforms with Cargill's bioprocessing and commercial expertise. We look forward to working with Cargill on this program and other areas of mutual interest."