Neptune Penetrates Asia by Partnering With Chinese SKFC, the World's Largest Fleet Owner of Fishing Vessels
September 19 2011 - 7:00AM
Neptune Technologies & Bioressources Inc. ("Neptune" or the
"Corporation") (Nasdaq:NEPT) (TSX-V:NTB) announces the conclusion
of a Memorendum of Understanding (MOU) with
Shanghai
KaiChuang Deep Sea Fisheries Co., Ltd. (SKFC) (together
the "Parties") to form a 50%/50% Joint Venture named
Neptune-SKFC Biotechnology that will manufacture
and commercialize Neptune's krill products in Asia, the world's
largest market for such products.
The initial cost of the project will reach up to USD $30,000,000
(financed be Chinese Banks and the Parties) to realize the
construction of a state of the art production facility using
Neptune Proprietary Production Technology in China as well as for
immediately developing a strong commercial distribution network for
Asia. According to the agreement, SKFC will supply all the raw
material and Neptune will provide a license to Neptune-SKFC
Biotechnology allowing it rights of use of its Production
Technology IP for the Asian Market in return of a significant up
front payment as well as for royalty payments.
''We are extremely pleased to partner with Neptune as it is the
desire of the Chinese government to develop value-added products
from primary fishing industry'' stated Tang Qiqing, Chairman of the
Board of SKFC.
''After evaluating different Companies in the krill oil
business, it became obvious to us that Neptune had the best
Proprietary Production Technology and IP protection and became our
preferred choice. We are pleased to have concluded this MOU as
both parties negotiated in the best interest of their respective
shareholders'' stated Zhou Jinwang, Director of the Board of
SKFC.
''This major milestone was part of SKFC's development plan in
order to become the world's largest krill fishing
company. This partnership should generate production and sales
of up to 500MT of krill oil over the next five years.'' stated Xie
Feng, Chief Executive Officer of SKFC.
About the Chinese Market
China is one of the fastest growing markets in the
world. Not only is China's total population the largest in the
world by far (1.3 billion people), its economic situation is also
growing at the fast pace. The Annual Disposable income per capita
almost doubled from 2005 to 2009 and the trend is expected to
continue in the same direction in the foreseeable future. The
Asian market now represents more than 30% of all Omega 3 market
worldwide, China being the largest player in Asia.
Living standards are generally rising while health concerns are
increasing which has translated into a growth in sales in the
health food industry. Market information shows that the
foreign health products in 2007 only accounted for 7% of the total
number of products available but with an important market share of
more than 40%. With the continuous entry of foreign brands, the
percentage will continue to rise. In 2007, Chinese medicine
and health imported products reached USD $14 billion with an
increase of 26.6%. The global nutrition industry players believe
that China is the region that will offer the greatest growth
opportunities for the next years to come, ahead of the United
States.
''It has always been part of Neptune' strategy to partner with
the best and in this case with the largest player in the fishing
industry serving also one of the world's fastest growing market,
the Asian Market.'' stated Henri Harland, Chief Executive Officer
of Neptune. ''We did our homework and after years of due
diligence we finely found for the Asian Market the right partner
sharing the same interest for creating shareholders' value.'' he
added.
''We are extremely proud to partner with a well-established
Chinese organization such as SKFC which will facilitate the
commercialisation challenges that foreign companies may face when
introducing new products in the Asian market. The fact that
krill is already a recognized food source in certain Asian regions
will also contribute to ease Neptune's Krill Oil commercialisation
by Neptune-SKFC Biotechnology since Asian's consumers are
predisposed to consume krill oil.'' stated Andre Godin, Chief
Financial Officer of Neptune.
The board of Directors of Neptune-SKFC Biotechnology will
consist of 6 members, 3 representatives from Neptune and 3
representatives from SKFC. The MOU is also subject to the
approval of each Party's Board Members as well as from Chinese
government authorities. The Chairman will be designated by
SKFC and the CEO by Neptune.
About SKFC
SKFC is a publicly listed Company in China and is 43% owned by
Shanghai Fisheries General Corporation (SFGC), a very large fishing
conglomerate owned by the Government of China. In total, SFGC
is involved with more than 30 wholly-owned or J/V
companies. They are specializing in pelagic fishing, fishing
vessels, fishing machinery, fresh grocery and storage
services. They are present in more than 10 countries and
employs more than 4,000 employees. SKFC has also the largest
fleet of vessels of krill harvesting in the Antarctic Ocean which
will secure supply to Neptune-SKFC Biotechnology as well as
Neptune.
About Neptune Technologies & Bioressources
Inc.
Neptune is an industry-recognized leader in the innovation,
production and formulation of science-based and clinically proven
novel phospholipid products for the nutraceutical and
pharmaceutical markets. The Company focuses on growing consumer
health markets including cardiovascular, inflammatory and
neurological diseases driven by consumers taking a more proactive
approach to managing health and preventing disease. The Company
sponsors clinical trials aimed to demonstrate its product health
benefits and to obtain regulatory approval for label health claims.
Neptune is continuously expanding its intellectual property
portfolio as well as clinical studies and regulatory approvals.
Neptune's products are marketed and distributed in over 20
countries worldwide.
About Acasti Pharma Inc.
Acasti Pharma (TSXV:APO) is developing a product portfolio of
proprietary novel long-chain omega-3 phospholipids. Phospholipids
are the major component of cell membranes and are essential for all
vital cell processes. They are one of the principal constituents of
High Density Lipoprotein (good cholesterol) and, as such, play an
important role in modulating cholesterol efflux. Acasti Pharma's
proprietary novel phospholipids carry and functionalize the
polyunsaturated omega-3 fatty acids EPA and DHA, which have been
shown to have substantial health benefits and which are stabilized
by astaxanthin, a potent antioxidant. Acasti Pharma is focusing
initially on treatments for chronic cardiovascular and
cardiometabolic conditions within the over-the-counter, medical
food and prescription drug markets.
About NeuroBioPharm Inc.
NeuroBioPharm is pursuing pharmaceutical neurological
applications, and a clinical study for a medical food product with
a multinational partner is already initiated. The development of a
prescription drug candidate is currently in progress. Advanced
clinical development and commercialization is planned to be carried
out with multinational partners.
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Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release."
Statements in this press release that are not statements of
historical or current fact constitute "forward-looking
statements" within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 and Canadian securities laws. Such
forward-looking statements involve known and unknown risks,
uncertainties, and other unknown factors that could cause the
actual results of the Company to be materially different from
historical results or from any future results expressed or implied
by such forward-looking statements. In addition to statements which
explicitly describe such risks and uncertainties, readers are
urged to consider statements labeled with the terms "believes,"
"belief," "expects," "intends," "anticipates," "will," or
"plans" to be uncertain and forward-looking. The forward-looking
statements contained herein are also subject generally to other
risks and uncertainties that are described from time to time in the
Company's reports filed with the Securities and Exchange Commission
and the Canadian securities commissions.
CONTACT: Neptune Contact:
Neptune Technologies & Bioressources Inc.
Andre Godin, CFO
+1.450.687.2262
a.godin@neptunebiotech.com
www.neptunebiotech.com
CEOcast Contact:
Dan Schustack
+1 212-732-4300
dschustack@ceocast.com
www.ceocast.com
Howard Group Contact:
Bob Beaty
(888) 221-0915
bob@howardgroupinc.com
www.howardgroupinc.com
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