Martek inks formula deal with organic food company

Martek inks formula deal with organic food company Martek Biosciences said Tuesday it will supply nutritional oils for infant formula manufactured by Hain Celestial Group Inc., an organic food company, and two firms are in ongoing talks to use Martek's fatty acids in other food and beverage products.

Hain Celestial recently unveiled a new infant formula marketed under the Earth's Best brand, a leading organic baby and toddler food manufacturer.

The omega-3 fatty acid Martek (NASDAQ: MATK - News) manufacturers -- called docosohexaenoic acid, or DHA -- has been shown by studies to be a critical nutrient, spurring brain and eye development in infants. Martek also makes an omega-6 fatty acid called arachidonic acid, or ARA.

Martek's proprietary blend of DHA and ARA is sold by the top infant formula brands in 65 countries around the worldwide.

The Columbia biotechnology company also wants to break into the adult food market. Executives say DHA can play a vital role in mental and cardiovascular health in adults, and the company has been crafting development deals to put DHA in adult food products.

"Hain Celestial chose Martek for its high-quality DHA and ARA and we are looking forward to incorporating DHA into our great-tasting and healthy food products," Hain Celestial CEO Irwin D. Simon said in a statement.

In June, Martek reported an 82 percent jump in second-quarter profit. The company earned $6.3 million on sales of $70 million. Executives pronounced the company "rolling again" after a rollercoaster 2005 that saw the company missing financial forecasts and weathering inventory swings.