Peter, I'm reporting on the Martek annual meeting as promised.
My first Martek annual meeting and plant tour. Picked up following
info, offer some observations:
Biggest impression/surprise is Martek is more than just Formulaid;they
are actively cultivating the market for products beyond baby formula.
Regarding Formulaid, all plans progressing well. Launches in various
countries including US expected in rapid fire this year. Sales going
well in Europe now.
The production plant in Kentucky now producing the Formulaid product
profitably. Company still expecting more efficiencies of production
however. Pete Linsert, CEO, said he use to do some worrying about
the whole production aspect but not anymore. Called progress in last
year here dramatic. Other manufactures are being lined up to make
the Formulaid product so they wont get bogged down with manufacturing.
Currently Upjohn is being qualified as a producer for them.
Linsert confirm what I thought were only analyst projections of the
profitabity of Formulaid. Said company would get 6% of Formula sales
This comes from 3% royalty and 3% product sales I assume. With only
the present formula companies(42% of world market) this equates to
130M revenue he said. With the other formula companies expected to
sign on as the current ones launch, this would be about $300M
Beyond formula use, CEO sees vast additional uses for the DHA oil in
all sorts of applications. One he is hopeful about is as supplement
for lactating women. He said this market would be BIGGER than the
formula market. Also he sees uses as an additive to various other
foods to give people the benefits of the oils. Beyond this they are
looking into uses of DHA for treatment of things such as high
cholesterol, schizophrenia, etc. Sounds wild but they are sold on
the benefits of their product.
Many other things in pipeline and possibilities in pharmaceuticals.
Work with Merck and Genetics Institute going well. They have an
impressive lab in their corporate complex.
They are launching an agressive publicity campaign to educate the US
piblic about the benefits of DHA. Print, TV, and other media will be
used. A PR firm is under contract. As the public becomes aware of
the benefits of DHA, as supported by substantial research, they will
use the product in more and more ways.
Linsert said company in good shape financially, over $50M in cash.
Overall I was VERY IMPRESSED. It's not easy to impress me because I
ask a lot of questions and look for holes in responses. They passed
the tests.
They have a new web site www.martekbio.com lots of good info.
best to you Peter, any questions?...............Bill |
