Source: LOHAS Weekly Newsletter
Published: Wednesday, December 24, 2003

Genetically engineered DHA could lower costs.

Martek Biosciences Corp. (Nasdaq: MATK) has made a multi-year agreement with Canadian biotechnology company SemBioSys Genetics Inc. to develop specialty oil products for pharmaceutical and nutraceutical applications. In exchange for as much as $10 million in payment from Martek, SemBioSys will use its existing safflower biotechnology capabilities to develop plant-based docosahexaenoic acid (DHA) products. Martek will also pay royalties on new product sales, according to a Dec. 17 announcement. The announcement did not specify the exact length of the contract nor the amount of royalties Martek has agreed to pay.

Currently, Martek manufactures DHA from microalgae. If SemBioSys can use its genetic engineering technology to create DHA from other plants, Martek stands to lower its costs.