Development of capsule

12 Sep 2005 07:03

Stanelco PLC12 September 2005 12 September 2005 Stanelco plc ("Stanelco" or the "Company") Hard-shell Capsule Development Stanelco, the RF (radio frequency) applications group, is pleased to announcethe successful development of an edible, starch-based hardshell capsule foredible applications including dietary supplements and pharmaceutical uses. Stanelco and its partner on this project, Carclo plc, have been working togetherfor over 5 years with the objective of producing an economically viablealternative to two-piece hard-shell capsules made from gelatine. CarcloTechnical Plastics has now successfully manufactured capsules using a newpolymer blend developed by Stanelco's subsidiary Adept Polymers Limited workingin conjunction with the recently acquired Biotec Holding GmbH group. Work is ongoing to bring this new hard-shell capsule technology to market andStanelco and Carclo are now seeking to work with third parties to optimiseformulations, ensure regulatory approval (for human and animal consumption) anddevelop the route to market, this process is expected to take a reasonable timeto achieve. A "prospectus" is currently being prepared for the attention ofserious third parties. Both the starch-based material and the manufacturingprocess offer the prospect of lower unit costs of production than for gelatinecapsules. Starch-based hard-shell capsules also offer greater resilience tohumidity and heat than gelatine and facilitate easy filling - since they arenon-static. From knowledge of the market, the Company believes that gelatine, an animalderived material, is becoming less favoured as a material in which to delivernutritional supplements and pharmaceuticals to both humans and animals. Gelatinecapsule shells are currently made using a dip moulding process followed by aslow drying process, which injection moulded starch-based alternatives do notrequire. They are ready for filling immediately following manufacture. The onlysignificant alternative to gelatine currently on the market is HPMC(hydroxypropyl methyl cellulose), a synthetic material with a significantlyhigher cost base than gelatine. We believe that the world market for hardcapsules in significantly larger than that for soft capsules with many billionsof hard capsules produced annually. Stanelco's subsidiary, Aquasol Limited, filed for patent protection in relationto this new hardshell capsule in 1999. The patent, which is jointly owned withCarclo plc, is proceeding to grant in various territories. The design of thecapsule also offers tamper evident and novel dissolution features as well as thepossibility of multi-compartments. Ian Balchin, CEO of Stanelco said: "This breakthrough has resulted from acombination of Stanelco's expertise in formulating and blending starch basedmaterials together with Carclo's expertise in precision injection moulding ofsoluble polymers and the design and development expertise of both organisations.Stanelco's acquisition of Biotec is enabling the manufacture of materials withsignificantly lower cost potential than conventional solutions. We look forwardto the prospect of achieving regulatory approval and to entering the widermarket for replacing both gelatine and HPMC with our new products." Ends For further information please contact: Stanelco plc Ian Balchin, Chief ExecutiveStanelco PLCTel: +44 (0)2380 867100Tel: +33 (0)153 65 23 00 Jonathon Brill/Billy CleggFinancial DynamicsTel: +44 (0)20 7831 3113 About Stanelco plc The Stanelco Group of companies (the "Group") has brought together expertise inRF technology, RF applications and biodegradable material sciences to create arevolutionary range of packaging technologies. Stanelco's philosophy is thatnew products and processes must offer solutions and applications which: • Give higher added value, • are greener, more environmentally sustainable than those they replace, and • have protectable intellectual property rights. Stanelco will develop the products and processes to a demonstration stage andthen work with partners in order to reach the markets; and under thesecircumstances Stanelco will usually seek to license its technology. Stanelcoinvests considerable time and resources in ensuring its technologies areprotected via layers of patents wherever possible. In this way Stanelco believesit can minimise commercial risk and preserve the highest value for shareholders.The products offering the prospect of near term revenue generation are beinggiven priority over the Group's resources. Stanelco was founded in 1953 and is a world leader in the development of radiofrequency technologies for processing polymers for edible and packagingapplications and the design and manufacture of optical fibre technology,induction heating and dielectric welding equipment. Stanelco's currentdevelopments include GREENSEAL Food tray lidding technology, STARPOL (starch /pva blended material), FrogPack high impact low cost packaging format,CradleWrap range of biodegradable air cushion packaging, Soluble tape, 100%water-soluble films and adhesives, Biodegradable Airbag (void fill) packaging,water-soluble detergent capsules, edible sachets and waste packing. GREENSEAL, STARPOL, Frog Pack and CradleWrap are all trademarks of the Stanelcogroup. This information is provided by RNS The company news service from the London Stock Exchange