News

Fermentalg provides first quarter update

26 Apr 2018

Fermentalg has provided an update on its business activity during the first quarter of 2018, including first quarter revenue of €232K.

Fermentalg has provided an update on its business activity during the first quarter of 2018.

During the first quarter, Fermentalg obtained Generally Recognized As Safe (GRAS) classification awarded by a panel of US experts for DHA ORIGINS 350, an oil with a natural DHA concentration of 350 mg/g, and DHA ORIGINS 550, said to be the first algal oil with a minimum natural DHA concentration of 550 mg/g. GRAS status allows DHA ORIGINS products to be sold in applications dedicated to human nutrition including baby food.

In addition to obtaining this administrative authorisation, Fermentalg signed a US distribution agreement with Stauber, a North American supplier of specialty ingredients.

These achievements will, the company said, reinforce the marketing framework already established in Europe via the Novel Food authorisation obtained for DHA ORIGINS 350, the registration of DHA ORIGINS 550 on the EU list and the signing of a distribution agreement with IMCD Group.

During the first quarter, several batches of DHA ORIGINS 350 and DHA ORIGINS 550 were manufactured and samples delivered to sales contacts in response to the interest expressed. As a result, the first invoices were issued to customers in France, in quantities that remain confidential. The commercial launch of DHA ORIGINS 550 is slated for May.

Meanwhile, Fermentalg is also working on growing its production capacity by sourcing a second supplier of DHA. Discussions are underway with a view to roll-out during the year.

Fermentalg has says it also made progress with regard to its partnership with DIC Corporation. Launched in October 2017, the partnership involves a three-year joint development programme concerning two products derived from Fermentalg technology.

During the first quarter, the partners finalised the choice of the second product which, alongside the phycocyanin (natural blue pigment) previously announced, will be jointly developed for the health and nutrition market. For strategic reasons, the two partners have decided to keep their choice of this second product confidential for the time being.

In support of its various programmes, Fermentalg said it pursues a proactive review, expansion and selection policy regarding its patent portfolio in order to harmonise its intellectual property policy with its overall strategy.

Accordingly, in 2017 the Company acquired a portfolio of five patent families that consolidated its positioning in the omega-3 segment. As at 31 March 2018, Fermentalg’s portfolio comprised 27 patent families, unchanged from 2017 year-end. 23 of these have already been published by the relevant patent offices.

First quarter revenue came to €232K, whereas no income was recorded in Q1 2017. Q1 2018 revenue mainly consisted of services invoiced and contributions to R&D projects.