On the Street: DSM in Alliance
June 1/London/London Stock Exchange Aggregated Regulatory News Service -- Provexis plc has entered into a long-term alliance agreement with DSM Nutritional Products to commercialize its lead Fruitflow heart-health technology.
According to a release, Fruitflow is "a scientifically proven and patented anti-thrombotic extract for use in functional foods and dietary supplements. In December 2009, it was grantedthe first, and currently the only, Article 13(5) health claim approval by the European Commission."
The alliance will give DSM exclusive global rights to Fruitflow and will see the partners collaborate to develop Fruitflow in all major global markets, through an effective commercialization of current formats and pioneering new and significant applications. Strategy, coordination, organization and implementation will be governed by an alliance board with representatives from both companies. The agreement is based on a long-term cooperation between the partners.
DSM will be responsible for: manufacturing; marketing; and selling via its global sales force. Provexis will be responsible for contributing scientific expertise necessary for successful commercialization.
Profits from the alliance will be shared by the parties on an agreed basis, linked to various performance milestones. All other commercial terms of the alliance remain confidential between the two parties.
The partners are currently developing a launch plan to market Fruitflow worldwide for application in both food and dietary supplement formats.
Stephen Moon, CEO of Provexis, commented, "We are delighted to announce this long-term alliance to commercialise Fruitflow in line with the time frame and terms set out in the letter of intent asannounced in February 2010. We believe the technical, marketing and selling expertise and resource of DSM in all major global markets will be a key factor in the success of our lead technology. The collaborative approach facilitated by the alliance structure will allow both Provexis and DSM to contribute their expertise in the most effective way in order to maximize the success of the alliance. This collaborative approach demonstrates the open approach to innovation by DSM, and we are very pleased to enter into a long-term partnership with a global leader in food, feed, pharmaceutical and personal care ingredients."
Will Black, vice president of New Nutritional Ingredients at DSM Nutritional Products, commented, "We are very excited about our relationship with Provexis and the opportunity surrounding Fruitflow. Fruitflow is a great fit with our Nutritional Ingredients strategy of having recognized, strong science-backed evidence that supports health benefit claims that are relevant to consumers. Coupled with DSM's global coverage of both the dietary supplement and innovative ingredients markets, we expect to bring promising new solutions to our customers through this alliance."
From the June 7, 2010, Prepared Foods E-dition