COLUMBIA, Md., June 13 /PRNewswire-FirstCall/ -- Martek Biosciences Corporation (NASDAQ:MATK) today announced that the company has signed a worldwide license agreement with Nestec Ltd. for Martek's technology relating to docosahexaenoic acid (DHA) and arachidonic acid (ARA) in infant formulas. The agreement provides for an initial cash payment, consisting of a license fee, inventory prepayment and ongoing royalties based on Nestle's sales of infant formula containing Martek's oils.
Martek manufactures oils that contain the long-chain polyunsaturated fatty acids, DHA and ARA, both of which are found in breast-milk. Some clinical studies have demonstrated benefits for those infants receiving DHA and ARA supplemented formula. Martek's proprietary blend of DHA and ARA is the only source of these nutrients that the FDA has cleared for use in U.S. infant formula, and is currently being sold by the Company's licensees in supplemented formulas in over 60 countries around the world.
"Martek is pleased to add Nestle as a licensee for Martek's technology," said Henry "Pete" Linsert, Jr., Chairman and CEO of Martek Biosciences Corporation. "With the inclusion of Nestle, Martek has all of the major international infant formula companies under license, providing infants everywhere better access to DHA and ARA supplemented formula."
Martek Biosciences Corporation develops, manufactures and sells products from microalgae. The Company's products include: (1) specialty, nutritional oils for infant formula that aid in the development of the eyes and central nervous system in newborns; (2) nutritional supplements and food ingredients that may play a beneficial role in promoting mental and cardiovascular health throughout life; and (3) new, powerful fluorescent markers for diagnostics, rapid miniaturized screening, and gene and protein detection.
This press release contains forward-looking statements regarding the commercialization of Martek's products. Such statements involve risks and uncertainties that could cause future actual results to differ due to a variety of risk factors, including without limitation those factors set forth in Martek's filings with the Securities and Exchange Commission.