On the Street: Redpoint in Agreement with IFF
June 30/Ewing, N.J./PRNewswire-FirstCall -- Redpoint Bio Corporation has entered into a license and commercialization agreement with International Flavors & Fragrances Inc. (IFF), covering the commercialization of RP44, Redpoint's all-natural sweetness enhancer.
Under terms of the agreement, IFF will have exclusive rights, for five years, to develop, manufacture and commercialize RP44 in virtually all food and beverage product categories. In return, Redpoint will receive an upfront payment of $0.5 million and will be eligible to receive up to $1.0 in milestone payments based on certain criteria regarding supply and regulatory approval. In addition, Redpoint will receive royalties based on the amount of RP44 purchased by IFF for use in products. IFF will assume responsibility for the regulatory process and for costs associated with prosecuting and maintaining Redpoint's intellectual property covering the sweetness enhancer.
Ray Salemme, Ph.D., chief executive officer of Redpoint, stated, "We are delighted to announce this license and commercialization agreement with IFF, a global leader in the food and beverage industry with deep sector knowledge and a global customer base. IFF represents an ideal partner for us, providing outstanding regulatory and product development capabilities. With IFF's support, we believe we can maximize the value of RP44 as an all-natural sweetness enhancer used to make better tasting and healthier foods and beverages. We are confident in their ability to have it introduced into the marketplace as quickly, broadly and efficiently as possible."
"Reducing the amount of sugar in food and beverage products is a high priority for consumers, our customers, and therefore, for IFF. While we estimate that it will take approximately one year for product commercialization in the U.S. and additional time globally, we believe that Redpoint's all-natural sweetness enhancer adds a valuable tool to our arsenal of sugar-reduction solutions," said Mark Dewis, vice president, R&D – Flavors for IFF. "We are pleased with the sensory validation we've seen on this product and look forward to a successful partnership with Redpoint."
From the July 6, 2010, Prepared Foods E-dition