COLUMBIA, Md.—Martek Biosciences Corporation announced that it has extended its multi-year sole-source license and supply agreement with Danone, a worldwide producer of infant nutrition products.
Under the terms of the amended agreement, Martek will be Danone's exclusive supplier of ARA (arachidonic acid) for all of its infant formula and growing-up milk products through at least December 31, 2014, which is an extension of Martek's current exclusive ARA supply position with Danone by three years. As with the current agreement, Danone may continue to use non-microbial DHA (docosahexaenoic acid) sources. In most cases, Martek will continue to serve as Danone's global supplier for its microbially-derived DHA needs for infant formula. This is an amendment to the 2007 agreement between Martek and Numico and contains certain limited termination rights. Martek has supplied DHA and ARA to Numico, which was acquired by Danone in 2008, for infant formula products since 1994.
"This new agreement with Danone is an important milestone as we seek to extend our sole-source supply agreements with key customers beyond 2011," said Steve Dubin, Martek CEO. "This agreement illustrates that Martek's trusted high quality nutritional products, patent position, production capacity, strong research and science base, and long history of experience in DHA and ARA manufacturing and technology will continue to provide us a meaningful competitive advantage in the marketplace."
