supplements in China for persons older than twelve months. Since 2001,
Martek's life'sDHA(TM) and life'sARA(TM) have been used in infant
formula throughout China. This initial authorization runs through
August 5, 2009, at which time the Company may seek final authorization
for novel food approval. The Company plans to aggressively pursue
customers in China for the incorporation of our oils in foods,
beverages and nutritional supplements sold there.
-- Amended ARA Supply Agreement - In July 2007, Martek and DSM Food
Specialties B.V. ("DSM") entered into the Second Amendment to the ARA
Alliance, Purchase, and Production Agreement (the "Amendment"). Among
other things, the Amendment finalized ARA pricing to Martek for
calendar year 2007 as well as the parameters and methodologies for the
establishment of ARA pricing for calendar years 2008, 2009 and, if
certain criteria are met, 2010. The Amendment also resolved all
outstanding issues related to periods prior to January 1, 2007 and
established a means by which DSM and Martek will share in the economic
risks associated with exchange rate fluctuations between the U.S.
dollar and the Euro, the currency in which a portion of the ARA
purchase price is denominated.
-- Sale of Fluorescent Detection Products Business - In June 2007, Martek
sold its Fluorescent Detection Products business for $900,000 in cash
and a minority interest warrant position. Martek's senior management
determined that the fluorescent detection business did not fall within
the scope of the Company's current commercial focus. Net proceeds
from the sale approximated the value of assets sold which primarily
included inventory, equipment and certain patents. The buyer, Columbia
|SOURCE Martek Biosciences Corporation|
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