Navigation Links
Martek Biosciences Announces Agreement to Sell Majority of Winchester, Ky. Manufacturing Site
Date:9/23/2010

COLUMBIA, Md., Sept. 23 /PRNewswire-FirstCall/ -- Martek Biosciences Corporation (Nasdaq: MATK) announced today that it has entered into an agreement to sell a significant portion of the assets at its Winchester, Ky., manufacturing site to Alltech, an animal health company headquartered in Nicholasville, Ky. The assets to be sold include a majority of the land and buildings at the Winchester site as well as certain equipment therein, including all of the production-scale fermentation and recovery equipment. The transaction does not include the sale of, license of, or granting of any rights to any of Martek's strains, patents or any other technologies. It also does not permit the use of the Winchester assets to produce omega-3 and/or omega-6 polyunsaturated fatty acids for human use for a period of 10 years. The sale is consistent with Martek's previously announced plans to restructure its Winchester, Ky., manufacturing facilities in an effort to streamline operations, improve capacity utilization, and reduce manufacturing costs and operating expenses.  Under the terms of the sale agreement, Alltech will pay Martek a total of approximately $14 million over the next four years for the assets to be acquired. The transaction is expected to close by November 30, 2010, subject to customary closing conditions.

Also as previously disclosed, as a result of the Winchester plant restructuring and sale, Martek will incur both non-cash asset impairment and cash charges. Based on the terms of the sale, we currently project that non-cash charges of approximately $28-32 million will be recorded in the fourth quarter of fiscal year 2010 as well as cash charges of approximately $1 million related to employee separation costs.  

Following the sale and restructuring, Martek plans to continue to maintain a strong presence in Winchester, with approximately 50 skilled employees focused primarily on lab and pilot scale development, limited production, and supply-chain management.  In addition, Martek will maintain necessary production redundancies through continuing access to certain key processes at the Winchester facility and arrangements with contract manufacturers.  

"The restructuring of our manufacturing operations and this related asset sale is a necessary part of our strategy to significantly offset price reductions resulting from our infant formula contract extensions through the implementation of manufacturing cost savings, product innovation initiatives, and growing our non-infant formula business. Importantly, Martek will continue to have access to back-up production facilities, if needed. This transaction will also enable Martek to maintain a considerable presence in Winchester where we will carry-out a variety of critical innovation, development, and other activities," said Steve Dubin, CEO of Martek Biosciences Corporation.

About Martek Biosciences CorporationMartek Biosciences Corporation (NASDAQ: MATK) is a leader in the innovation, development, production and sales of high-value products from microbial sources that promote health and wellness through nutrition. The company's technology platform consists of its core expertise, broad experience and proprietary technology in areas such as microbial biology, algal genomics, fermentation and oil processing. This technology platform has resulted in Martek's development of a number of products including the company's flagship product, life'sDHA™ a sustainable and vegetarian source of algal DHA (docosahexaenoic acid) important for brain, heart and eye health throughout life for use in infant formula, pregnancy and nursing products, foods and beverages and dietary supplements. The company also produces life'sARA™ (arachidonic acid), an omega-6 fatty acid, for use in infant formula and growing-up milks. Martek's subsidiary, Amerifit Brands, develops, markets and distributes branded consumer health and wellness products and holds leading brand positions in all of its key product categories. Amerifit products are sold in most major mass, club, drug, grocery and specialty stores and include: Culturelle®, a leading probiotic supplement; AZO, the leading OTC brand addressing symptom relief, detection and prevention of urinary tract infections; and ESTROVEN®, the leading all-natural nutritional supplement brand addressing the symptoms of menopause. Martek currently has a number of nutritional health and wellness products under development that it plans to commercialize and distribute through Amerifit's distribution channels.

Martek's technology platform has also made it a sought-after partner on a range of groundbreaking projects in process, including the development of microbially-derived biofuels and the development of DHA-containing oilseeds. For more information on Martek Biosciences, visit http://www.martek.com/. For a complete list of life'sDHA and life'sARA products, visit http://www.lifesdha.com/. For more information about Amerifit Brands, visit www.amerifit.com.

Safe Harbor StatementSections of this release contain forward-looking statements. These statements, including statements about (i) Martek's planned restructuring initiatives in Winchester, Ky., and its plans with respect to future activities at that site, (ii) expected future production and economic benefits of the restructuring, (iii) expected charges resulting from the restructuring, (iv) expected production capacity for DHA and ARA, (v) expected future growth in demand for, and sales of, Martek products, and (vi) performance of the Amerifit division, are based upon numerous assumptions which Martek cannot control and involve risks and uncertainties that could cause actual results to differ. These statements should be understood in light of the risk factors set forth in the company's filings with the Securities and Exchange Commission, including, but not limited to, the company's Form 10-K for the fiscal year ended October 31, 2009 and other filed reports on Form 10-K, Form 10-Q and Form 8-K. Contact:Kyle StultsInvestor Relations, Martek (410) 740-0081investors@martek.comCassie France-KellyPublic Relations, Martek(443) 542-2116media@martek.com
'/>"/>

SOURCE Martek Biosciences Corporation
Copyright©2010 PR Newswire.
All rights reserved

Related medicine technology :

1. Martek to Announce Third Quarter 2010 Results
2. Signum Biosciences Awarded Two Additional NIH Grants for Development of Topical Therapeutics
3. Ardea Biosciences to Present at Four Upcoming Investor Conferences
4. Regado Biosciences to Present at the Stifel Nicolaus Healthcare Conference 2010 on September 16, 2010 in Boston, Massachusetts
5. HUYA Biosciences Establishes Strategic Partnership with Sun Yat-sen Universitys School of Pharmaceutical Sciences
6. InQ Biosciences Appoints John Ryder as Senior Vice President, Sales & Marketing
7. Neurocrine Biosciences Announces Conference Call and Webcast to Report Second Quarter 2010 Financial Results
8. Award Winning Mayo Clinic Scientist Joins Cardio3 BioSciences
9. SeqWrights Partnership with EraGen Biosciences Contributes to FDA Market Clearance Success
10. Signum Biosciences, Inc. Announces Commercial Launch of Arazine™
11. Sangamo BioSciences Announces Nature Biotechnology Study Demonstrating the Use of Zinc Finger Nucleases to Generate HIV Resistant Human Stem Cells
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/24/2016)... PUNE, India , June 24, 2016 ... "Pen Needles Market by Type (Standard Pen Needles, Safety ... 12mm), Therapy (Insulin, GLP-1, Growth Hormone), Mode of Purchase ... published by MarketsandMarkets, This report studies the market for ... is expected to reach USD 2.81 Billion by 2021 ...
(Date:6/23/2016)... Research and Markets has announced the addition of the ... report to their offering. ... failure, it replaces the function of kidneys by removing the ... the treatment helps to keep the patient body,s electrolytes such ... Increasing number of ESRD patients & substantial healthcare expenditure on ...
(Date:6/23/2016)... June 23, 2016 Research and Markets ... Medical Market Analysis 2016 - Forecast to 2022" report ... The report contains up to date financial data derived from ... of major trends with potential impact on the market during ... market segmentation which comprises of sub markets, regional and country ...
Breaking Medicine Technology:
(Date:6/27/2016)... ... June 27, 2016 , ... "FCPX editors can now reveal their media ... Pro X," said Christina Austin - CEO of Pixel Film Studios. , ProSlice ... X users can now reveal the media of their split screens with growing ...
(Date:6/27/2016)... KS (PRWEB) , ... June 27, 2016 , ... TopConsumerReviews.com ... retailers of Eyeglasses . , Millions of individuals in the United States and ... have become a way to both correct vision and make a fashion statement. Even ...
(Date:6/26/2016)... Carolina (PRWEB) , ... June 26, 2016 , ... ... of a new product that was developed to enhance the health of felines. The ... centuries. , The two main herbs in the PawPaws Cat Kidney Support ...
(Date:6/25/2016)... ... June 25, 2016 , ... Austin residents seeking Mohs surgery services, ... Mohs Surgery and to Dr. Russell Peckham for medical and surgical dermatology. , Dr. ... skin cancer. The selective fellowship in Mohs Micrographic Surgery completed by Dr. Dorsey was ...
(Date:6/25/2016)... ... ... As a lifelong Southern Californian, Dr. Omkar Marathe earned his Bachelors in ... School of Medicine at UCLA. He trained in Internal Medicine at Scripps Green Hospital ... at the UCLA-Olive View-Cedars Sinai program where he had the opportunity to train in ...
Breaking Medicine News(10 mins):