Avoca And Synthetic Genomics Sign Supply Agreement
Pharmachem Laboratories division Avoca announced that it has signed into a supply agreement with Synthetic Genomics (SGI) for the extraction and marketing of natural astaxanthin from a strain of algae developed by SGI’s Genovia Bio business unit.
Under the terms of the multi-year supply agreement, Avoca will gain exclusive rights to product sales in North America. Pharmachem Lab alone will be responsible for marketing and sales.
According to David Peele, President of Avoca, “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 their 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.”
Natural astaxanthin is a supplement that offers powerful antioxidant and anti-inflammatory properties for health benefits. The substance is difficult to produce and available in limited supply. SGI has developed a production process for natural astaxanthin from a phototropic source. Genovia Bio has developed two market-ready products from heterotrophic and phototropic algae sources. The company has also demonstrated commercial-scale manufacturing capability and performance of the substance over the course of 18 months.
Jon Getzinger, SVP of Synthetic Genomics, said that the company is pleased to partner with Pharmachem Labs and Avoca. “Our ability to develop advantaged nutraceutical and human and animal feed ingredients coupled with Avoca's ability to process and market those products, makes this an ideal agreement for both companies. Commercialization of astaxanthin with Avoca demonstrates how we can supply important high quality, natural ingredients to the market using our algae technology.”
No financial details of the supply agreement between the two companies were disclosed.