Last checked at 1 Jun 2010 07:00
1 June 2010
Provexis PLC
Alliance Agreement
Long-term Alliance Agreement with DSM Nutritional Products
Provexis plc ("Provexis" or the "Company"), the life-science business that discovers, develops and licenses scientifically-proven functional food, medical food and dietary supplement technologies, announces that it has entered into a long-term Alliance Agreement ("Alliance") with DSM Nutritional Products ("DSM" and together with Provexis, the "partners") to commercialise its lead Fruitflow® heart-health technology.
Fruitflow® is a scientifically-proven and patented anti-thrombotic extract for use in functional foods and dietary supplements. In December 2009 it was granted the 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 andwill see the partners collaborate to develop Fruitflow® in all major global markets, through an effective commercialisation of current formats and pioneering new and significant applications. Strategy, co-ordination, organisation 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 commercialisation.
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 as announced 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 maximise 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, VP 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."
DSM, as part of the wider Royal DSM N.V. group, is classified as a related party of the Company for the purposes of the AIM Rules for Companies (the "AIM Rules"). Accordingly, the Alliance Agreement will be classified as a related party transaction for the purpose of Rule 13 of the AIM Rules. The directors of Provexis (the "Directors"), having consulted with Evolution Securities Limited ("Evolution Securities"), the Company's nominated adviser, consider that the terms of the Alliance are fair and reasonable insofar as Provexis's shareholders are concerned. In providing advice to the Directors, Evolution Securities has taken into account the Directors' commercial assessments.
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For further information please contact:
Stephen Moon, Chief Executive
Provexis plc Tel: 01753 752290
Sam Plumptre/Bobbie Hilliam Tel: 020 7071 4317
Evolution Securities
Haggie Financial LLP: Tel: 020 7417 8989
Nicholas Nelson/Alex Parry nicholas.nelson@haggie.co.uk
Notes to Editors
About Fruitflow®
Provexis' development of Fruitflow®, a water-soluble tomato concentrate, is a breakthrough in anti-thrombotic food technology. In human trials, consumption of the Fruitflow® extract has been proven to reduce platelet aggregation in 97% of subjects. The effect takes place within three hours of consumption and lasts for up to eighteen hours, making it ideal for daily dosage in functional foods or dietary supplements. Provexis has developed a syrup format for use in food & beverages and a concentrated powder format for tablets and capsules.
Fruitflow® syrup is GRAS (Generally Regarded as Safe) by the US FDA and is not regarded as a Novel Food in the EU, clearing it for wide use in foods, beverages and supplements. In May 2009, the Fruitflow® technology was the first to be substantiated by the European Food Safety Authority ("EFSA") under the new Article 13(5) for proprietary and emerging science. In December 2009 the European Commission authorised the health claim "Helps maintain normal platelet aggregation, which contributes to healthy blood flow", which was the first wording to be authorised under Article 13(5).
The technology has been granted patents in the EU, US, Australia, Canada and Mexico, with Japan pending. Further patents have been filed for the bioactive components of Fruitflow and for other developmental areas such as deep vein thrombosis and triglyceride lowering.
About Provexis plc
AIM-listed Provexis is focused on the discovery, development and licensing of technologies for the functional food, dietary supplement and medical food sectors.
The company was originally spun out of the Rowett Institute (now part of the University of Aberdeen) in 1999 to commercialise their tomato extract discovery using venture capital funding. Provexis Limited was reversed into Nutrinnovator in 2005 and its major investors are DSM Venturing and Rising Stars Growth Fund (part of Enterprise Ventures).
The company has additional biotechnology developments, including a joint venture with the University of Liverpool to develop an extract of plantain which aids the treatment of inflammatory bowel disease.
About Royal DSM N.V.
Royal DSM N.V. creates solutions that nourish, protect and improve performance. Its end markets include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrical and electronics, life protection and housing. DSM manages its business with a focus on the triple bottom line of economic prosperity, environmental quality and social equity, which it pursues simultaneously and in parallel. DSM has annual net sales of about €8 billion and employs some 22,700 people worldwide. The company is headquartered in the Netherlands, with locations on five continents. DSM is listed on Euronext Amsterdam.
About DSM Nutritional Products
DSM Nutritional Products, a wholly-owned business unit of Royal DSM N.V., is the world's leading supplier of vitamins, carotenoids and other key nutrition & health ingredients to the feed, food, pharmaceutical and personal care industries. The business has sales of about €2.5 billion and a long tradition as a pioneer in the discovery of new products, new formulations and attractive applications for all industry segments.