Burcon sets up partnership with ADM
of an agreement with ADM which would see the oilseed processor
manufacturing Puratein and Supertein canola protein isolates using
Burcon's extraction technology.
Canada's Burcon NutraScience has signed a letter of intent with Archer Daniels Midland (ADM) to enter into a licensing and development agreement to manufacture and market Puratein and Supertein canola protein isolates using Burcon's patented extraction technology.
The agreement also concerns special grades of the products and derivative products. Other terms in the letter of intent covered development of commercial applications for the products, funding the construction of one or more full-scale commercial plants to produce the products and marketing the protein isolates worldwide for all uses.
Based in Vancouver, British Columbia, Burcon NutraScience has developed a portfolio of composition, application and process patents around its plant protein extraction and purification technology. The company is hoping to develop Puratein and Supertein to compete with soy, dairy and egg proteins in the expanding multi-billion-dollar protein ingredient market. Potential uses include prepared foods, nutritional supplements and personal care products. Canola, recognized for its nutritional qualities, is the second-largest oilseed crop in the world after soybeans.
Final terms of the new transaction are subject to negotiation and definitive agreements, and the agreement is not yet legally binding.
Johann F. Tergesen, president and COO of Burcon, said: "Burcon has been searching for a partner with strength in production, sales and marketing of specialty ingredients to profit from Burcon's novel protein extraction technology and this timely opportunity."
He added that the company wanted a partner with experience in new product development and global reach, which could provide speed to market and make the proteins available worldwide.
Illinois-based ADM is one of the world's largest processors of soybeans, corn, wheat and cocoa. It is also building on its range of value-added products such as specialty food ingredients, bioproducts and nutraceuticals. The company this week announced that it is constructing a soy processing facility in Shanhaiguan, China in partnership with Singapore's Wilmar Holdings. The facility will produce ADM's Arcon line of functional soy protein concentrates, specialty soy flour for soy sauce fermentation and whole edible soybeans.
Net sales for the ADM fiscal year ended June 30, 2002, were $22.6 billion.
