06.20.14
Avoca, Inc., Kearny, NJ, a division of Pharmachem Laboratories, Inc., has formed a supply agreement with Synthetic Genomics, Inc. (SGI), La Jolla, CA, a privately held company developing and commercializing genomic-driven solutions and products in a variety of industries, to extract and commercialize natural astaxanthin from a strain of algae developed by SGI. The multi-year supply agreement also provides Avoca with exclusivity for product sales in North America. Pharmachem Laboratories will be responsible for marketing and sales. SGI is developing this product through its Genovia Bio business unit, which is responsible for the development and commercialization of algal-based food, chemical and fuel products. Financial details were not disclosed.
David Peele, president of Avoca, commented, “This agreement will make us one of just a handful of vertically integrated, domestic producers of astaxanthin, with SGI providing sufficient algae biomass to ensure our customers of a consistent supply from U.S. sources. Using its proprietary technology, SGI has developed algae with a higher level of astaxanthin, and as a result, we can provide 7.5% astaxanthin oleoresin with the concentration increasing over time as the algae strain and production technology is improved.”
David Peele, president of Avoca, commented, “This agreement will make us one of just a handful of vertically integrated, domestic producers of astaxanthin, with SGI providing sufficient algae biomass to ensure our customers of a consistent supply from U.S. sources. Using its proprietary technology, SGI has developed algae with a higher level of astaxanthin, and as a result, we can provide 7.5% astaxanthin oleoresin with the concentration increasing over time as the algae strain and production technology is improved.”
