Israeli biotechnology company Enzymotec Ltd. and Sweden’s AarhusKarlshamn AB (SAX:AAK) will set up a joint venture, Advanced Lipids AB, for the production, marketing and sale of nutritional supplements, especially for infant nutrition.
The initial investment in Advanced Lipids will be $5 million, with an additional investment scheduled for 2008. The new plant will produce products developed by Enzymotec using technology developed by AAK. The two companies will own the joint venture in equal shares, and Enzymotec executive Yoav Kahane will manage it.
Enzymotec and AAK have been collaborating since 2003, when they launched infant formula additive, InFat, a lipid molecule that improves an infant’s ability to absorb calcium and reduces constipation.
AAK VP Hakan Christensson said, “The cooperation with Enzymotec will strengthen AAK’s position in the baby food market.”
Kahane added that the two companies were already working on additional joint products.
Although all of Enzymotec’s products are defined as nutritional supplements, the US Food and Drug Administration (FDA) allows most of them to state that they have medical properties.
Published by Globes [online], Israel business news - www.globes.co.il - on July 2, 2007
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