The report identifies Medical Foods as a potential growth area for the future; commenting that “The medical foods market should be a lucrative place to market products as these products are often reimbursed and high margin.” According to the report, opportunities for medical foods are increasing for a number of reasons:
• Food technology has advanced to provide for better tasting and better texture medical foods
• Following its launch, there is an opportunity to expand the consumer base of a medical food based on benefits that are relevant to other populations
• Advances in science will continue to link additional diseases to diet and nutrition
The report identifies that innovative players like WellGen are transforming nutraceutical development by conducting “pharma-like” research in order to demonstrate the value of their medical food products. Through this approach, WellGen “may be able to publicize more of the research they have undertaken to establish the nature of the effect of the nutraceutical in treating, preventing or curing a disease state”.
The report notes that these innovative start-ups will be attractive acquisition candidates to significant strategic players. “Key Players and Innovative Start-Ups in Nutraceuticals” specifically states, “The technology to support this process of extraction and testing of novel nutraceutical compounds is only now becoming a reality and has driven the growth of a number of companies that are adopting a biotech approach to nutraceutical development. It is likely that this trend will continue and grow, with the smaller innovative companies of today offering acquisition and licensing opportunities for the largest food and ingredients companies in the near future.”
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