Mark, here is info I promised you on Martek NASD symbol MATK
Martek develpos and produces products from microalgae. They
have one of world's largest microalgae libraries which is currently
being explored for products. For example Merck and Genetics Institute
are screening their libraries for potential pharmaceuticals at this
time. This arrangement is much like the gene database that Human
Genome Sciences has for genes. This processs could lead to big
things in the future but meanwhile there is real product beginning
to sell that is the cash cow story.
MATK has created a product called Formulaid from fatty acids
and are using the product as an additive to baby formula. It's
advantage is making baby formula have the same acids found in
breast milk. What is incredible is the research which shows how
breast fed babies have better health, sight and higher IQs when
fed with breast milk. MATK's Formulaid will take the baby formula
market by storm.
Formulaid is REAL!!!!! They are making it today. They have
already signed up Bristol Myers Squibb, American Home Products,
Maabarot, Nutricia, Sandoz which together sell over 40%of all
formula around the world. The remaining companies who sell the
other 60% are highly likely to license the product as competitors
use the product in their market.
Currently MATK is ramping up production of Formulaid at a new
$10M plant. Formulaid now in formula being sold in several European
countries with more in very near term. US sales should begin
starting this year. Phased start up is necessary because they
couldn't supply all the demand by simultaneous startup everywhere,
so production planned to stay ahead of each country as product is
intoduced by formula licensee.
There is NO ISSUE of this product being safe. Many tests have
already confirmed. The approval in US will require only a generally
recognized as safe (GRAS) approval which is a 90 day FDA process.
What does it mean in profits???? MATK will get a 3% licence
fee on sales from the formula companies. Estimated of revenues
from making and licensing Formulaid is about $120 for the companies
already signed. More after the "the other 60%" sign.
As I see it this revenue is the CASH COW for MATK. High margin
ongoing revenue from a product that should be used every year into
the future.
Investor Business Daily had a neat article on MATK Dec 4 1995.
I could go on about other items on MATK but this should answer
your questions about why I am so sure about this stock. Of course
you should do your checking before investing on anything. More on
MATK can be had from MATK investor relations guy Greg Lampf,
410 740 0081.
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