Martek Biosciences and DSM Extend Partnership to Produce and Supply Arachidonic Acid (ARA)

Strategic Insights -

Martek Biosciences Corporation and DSM Food Specialties B.V. have announced a new agreement to extend their partnership, which involves the production and supply of arachidonic acid (ARA). ARA is a long-chain fatty acid that, when combined with docosahexaenoic acid (DHA), supports infant brain development. Under the new agreement, the companies will increase production of ARA, cross-license certain intellectual property relating to ARA, and perform joint research and development to expand applications for ARA.

Key Takeaways:

  • The new agreement replaces the current production agreement between Martek and DSM, which has been in place since 1997.
  • Martek and DSM will increase production of ARA, with DSM significantly expanding its production capacity to meet current and anticipated market demand.
  • The companies will cross-license certain intellectual property related to ARA and perform joint research and development to expand applications for ARA.
  • Martek will have access to certain of DSM's patents and intellectual property, as well as ARA production rights.
  • DSM, as Martek's supplier of ARA, will have access to Martek's technology related to ARA manufacturing and will be granted rights to use Martek's technology in non-human fields, including animal feeds.

Statistics:

  • The current agreement has been in place since 1997.
  • DSM's production capacity will be significantly expanded to meet current and anticipated market demand.
  • Martek's ARA products are used in infant formula to support the development of the eyes and central nervous system in newborns.
  • DSM has annual sales of approximately EUR 8 billion and employs around 25,000 people worldwide.
  • DSM is a global leader in many of its fields, including human and animal nutrition and health, cosmetics, pharmaceuticals, and automotive industry.

Sources:

  • PRNewswire. "Martek and DSM Extend Partnership to Produce and Supply Arachidonic Acid (ARA)." April 19.
  • Martek Biosciences Corporation. Company Website. http://www.martekbio.com.
  • DSM. Company Website. http://www.dsm.com.