Galagen Inc. Announces Nutritional Products Collaboration With Rhodia, Inc., a Rhone-Poulenc Company
First Product to be Exhibited at Institute of Food Technologists Show
June 20-24 in Atlanta
ARDEN HILLS, Minn., June 18 /PRNewswire/ -- GalaGen Inc. (Nasdaq: GGEN) announced that it has formed a nutritional products development collaboration with Rhodia Inc., a Rhone-Poulenc company formed earlier this year from Rhone-Poulenc's chemicals, fibers, polymer and food ingredient businesses. The two companies will jointly develop and market a patent-protected range of nutritional products positioned for the rapidly growing nutraceutical and functional food market. They will contain GalaGen's Proventra(TM) brand and Rhodia's NCFM(TM) brand ingredients. Proventra is GalaGen's proprietary brand of natural immune components manufactured from the milk and colostrum of dairy cows. NCFM (North Carolina Food Microbiology) is Rhodia's unique health-promoting strain of Lactobacillus acidophilus, used as a nutritional supplement in dairy and food products.
The non-fat, yogurt-based nutritional beverage is designed to be part of the "next generation" of food products that combine good taste with health features beyond their nutritional content. The product is the first jointly developed from the collaboration and will be exhibited at Rhodia's booth at the Institute of Food Technologists Annual Meeting and Exposition in Atlanta, June 20-24th. The new product is specifically targeted for busy working professionals and families "on the go;" product license and marketing rights are currently available.
GalaGen's President and CEO, Robert A. Hoerr, M.D., Ph.D., said: "This collaboration strengthens the market potential for GalaGen's nutritional products in development, which include products intended for the functional food, nutraceutical and clinical nutrition markets. These fast-growing markets are ideal for a partnership between two companies with innovative functional food technology. In addition to our combined technology strengths and product development expertise, Rhodia with its international sales and marketing capabilities, can rapidly introduce our products globally."
GalaGen's first nutritional product, Basics Plus(TM), is a beverage being marketed in selected cities by Chicago-based Lifeway Foods, Inc. (Nasdaq: LWAY). Basics Plus is the first refrigerated, dairy-based dietary supplement to enter the supermarket and contains GalaGen's Proventra(TM) Brand Natural Immune Components. The product was featured in the February 1998 issue of Dairy Foods Magazine and targets the rapidly growing healthy beverage market, estimated to exceed $20 billion annually.
Rhodia, one of the world's leading specialty chemicals companies, contributes to improving the quality of life by developing value-added products, services and solutions. Rhodia employs 26,000 people worldwide and recorded sales of $6.2 billion in 1997. Rhodia is a subsidiary of Rhone-Poulenc S.A.
GalaGen Inc. is utilizing its antibody platform technology to develop a broad portfolio of proprietary nutritional products, including dietary supplements and medical foods, which incorporate its Proventra(TM) Brand Natural Immune Components. These products will target needs of both consumers and healthcare professionals. The company currently has Basics Plus in test markets in conjunction with its marketing and manufacturing partner, Lifeway Foods, and has several other projects under way in various stages of development.
Except for historical information, matters discussed in this press release are forward-looking statements that involve risk and uncertainties, including, but not limited to, risks associated with entering new markets, consumer acceptance, regulation of nutritional products including infant formula and dietary supplements, competitive pressures and other important factors detailed in the company's annual report on Form 10-K for fiscal 1997 filed with the Securities and Exchange Commission.
SOURCE GalaGen Inc.
-0- 6/18/98
/CONTACT: Gregg A. Waldon, Chief Financial Officer, or Robert A. Hoerr, President and Chief Executive Officer, 612-481-2105, both of GalaGen Inc., or Marian Briggs, mbriggs@psbpr.com, or Diane Rose, drose@ps |
