Martek and Danone Extend Sole Source Agreement

Under the terms of the amended agreement, Martek will be Danone’s exclusive supplier of ARA for all of its infant formula and growing-up milk products until at least 31 December 2014.

4 Mar 2010 --- Martek Biosciences Corporation has extended its multi-year sole-source licence and supply agreement with Danone, a leading worldwide producer of infant nutrition products.

Under the terms of the amended agreement, Martek will be Danone’s exclusive supplier of ARA for all of its infant formula and growing-up milk products until at least 31 December 2014, which is an extension of Martek’s current exclusive ARA supply position with Danone by three years. As with the current agreement, Danone may continue to use non-microbial DHA sources. In most cases, Martek will continue to serve as Danone’s global supplier for its microbially-derived DHA needs for infant formula. This is an amendment to the 2007 agreement between Martek and Numico and contains certain limited termination rights. Martek has supplied DHA and ARA to Numico, which was acquired by Danone in 2008, for infant formula products since 1994.

“This new agreement with Danone is an important milestone as we seek to extend our sole-source supply agreements with key customers beyond 2011,” said Steve Dubin, Martek CEO. “This agreement illustrates that Martek’s trusted high quality nutritional products, patent position, production capacity, strong research and science base, and long history of experience in DHA and ARA manufacturing and technology will continue to provide us a meaningful competitive advantage in the marketplace.”

With presence in all five continents and over 120 countries, Danone is a Fortune 500 company that holds a leading global position in infant nutrition. The Danone Baby Nutrition division specialises in food for the healthy growth and development of infants and toddlers (0-3 years old) through an extensive range of safe, nutritionally superior and convenient products.

Naturally present in human breast milk, DHA (docosahexaenoic acid), and ARA (arachidonic acid) are fatty acids important to infant development and growth. Clinical studies have demonstrated numerous benefits for infants receiving DHA and ARA supplemented formula, including improved mental and visual development.

Martek's blend of DHA and ARA, life’sDHA & life’sARA, is promoted as the only source of these nutrients currently used in US infant formula, and is present in more than 95 per cent of infant formula sold in the US. Infant formulas containing Martek’s nutritional oils are available in more than 75 countries and have been consumed by over 53 million infants worldwide.