Agreement Provides Upfront Funding, Milestone Payments and Royalties
CALGARY, Alberta, Dec. 17 -- SemBioSys Genetics Inc., a Canadian biotechnology company, announced today that it has executed a development agreement with Martek Biosciences Corporation (NASDAQ:MATK) to co-develop value-added specialty oil products with potential pharmaceutical and nutraceutical applications. Under the terms of the multi-year agreement, SemBioSys will use its Safflower biotechnology capabilities to develop plant- based DHA products for Martek in return for up to US$10MM in research payments and milestone payments as well as undisclosed royalties on new product sales.
"Martek had the opportunity to work with many other plant biotechnology companies. The fact that they selected SemBioSys as a partner is tremendous validation of our proprietary technology and development capabilities," said Andrew Baum, president and CEO of SemBioSys. "We are pleased to have been chosen by Martek as a strategic partner and look forward to this exciting collaboration."
"Martek looks forward to working with SemBioSys to lower the costs of DHA production through the use of plants," stated Henry "Pete" Linsert, Jr., chairman and chief executive officer of Martek.
SemBioSys has developed a variety of proprietary genetic engineering technologies for recombinant protein production and metabolic engineering of oilseeds including Safflower. These technologies are ideally suited to the production of high-value lipids in oilseeds. The Company has a fully integrated capacity to develop such products from gene through to pilot-scale manufacturing in the shortest possible time.
About SemBioSys Genetics Inc. (www.sembiosys.com)
Calgary, Alberta-based SemBioSys Genetics Inc. is a privately held biotechnology company focused on the development of high-value protein and oilbody-based products using its proprietary oilbody-based technology-the Stratosome(TM) Biologics System. Spun out of the University of Calgary in 1996, the company's investors include Bay City Capital, Dow AgroSciences Canada, Inc., Ventures West Management Inc., BDC Venture Capital, University Technologies International Inc., RBC Capital Partners and Maurice Moloney Ph.D. scientific founder and chief scientific officer. In addition to these investors, SemBioSys has received repayable contributions of CAD$5.5MM from Technology Partnerships Canada, an agency of Industry Canada, and CAD$4.9MM from AVAC Ltd.
About Martek Biosciences Corporation (www.martekbio.com)
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.
Stratosome is a trademark of SemBioSys Genetics Inc.