Received this in an online newsletter (per SPEC tives). Thought it might be of interest to those following Novartis...
Forbes Medi-tech (FMI)
forbesmedi-tech.com
The following news sent FMI rocketing higher:
Forbes Medi-Tech has signed an agreement with Novartis, a world leader in life sciences, regarding Forbes' unique plant based sterol composition (FCP), a potential functional food ingredient for lowering cholesterol.
Novartis has paid Forbes a lump sum fee for the exclusive option to a
worldwide licence to use or sub-licence FCP for use in nutritional
products. Further financial terms were not disclosed.
Thomas Ebeling, head of Novartis Nutrition worldwide, commented: "This
agreement is just a first step in pursuing our science-based nutrition
strategy. Once developed with scientifically proven benefits and supported by appropriate marketing, FCP could be a major breakthrough in the high-potential area of functional foods".
FCP is extracted from wood pulp using Forbes' proprietary technology. It acts primarily by preventing cholesterol absorption into the bloodstream. Recent initial clinical studies have shown a promising reduction in both total and low-density lipoprotein cholesterol levels. Once developed, FCP could be incorporated in a wide range of functional food products.
With long-standing expertise in cardiovascular healthcare and one of the world's largest clinical research and development operations, Novartis has a powerful base to back up cholesterol lowering claims with scientific evidence. Further clinical trials are planned and Novartis is confident in its ability to speed development and shorten time-to-market. It also has the strength of its Nutrition distribution channels to launch and market nutraceuticals.
Novartis Nutrition is one of the largest specialized nutrition companies in the world. It is the number one health food marketer in Europe, holds the number two position worldwide in medical nutrition, and is a world leader in jarred infant and baby food. It develops manufactures and markets a range of value added specialized health and medical nutrition products, and is owner of the leading US infant and baby nutrition brand, Gerber. The parent company, Novartis, is a world leader in life sciences with core business in healthcare, agribusiness and nutrition. In 1997, Novartis Group sales were US$21.6 billion, of which US$13.0 billion were in healthcare, US$5.8 billion in agribusiness and US$2.8 billion in nutrition.
Headquartered in Basel, Switzerland, Novartis employs about 87,000 people and operates in over 100 countries.
The stock looks strong and could still go higher. We expect it to encounter some resistance at around $5.50. |
