Fermentalg Reports $2.9m Loss But Says Production of Flagship Fatty Acid DHA is Imminent
19 Sep 2016 --- Fermentalg has reported a €2.6m ($2.9m) loss in the first half of the year but said it's on course to begin the commercialization of its flagship product DHA which could help combat brain and heart illnesses in the coming months.
The French biotech company, which specializes in the production of oils and proteins from microalgae, has reported a loss of €2.62m ($2.92m) in the six months to June 30, compared to a loss of €2.55m ($2.84m) the year previous. Revenues were €172,000 ($192,000) in the period.
Fermentalg is hoping that DHA, a fatty acid, will prove a hit.
It has inked a deal for its production with ARD, the bio-refining company, and hopes to begin production and commercialization of DHA in the second half of 2016.
Fermentalg said it estimated that it has made a €2m ($2.3m) investment in DHA in the period, made up of material and labor costs.
Andrew Echatti, CEO, said: "The first half of 2016 marks an important stage in Fermentalg's development. The industrialization of our flagship product, DHA, was successfully launched in record time, and is clear proof of our ability as a company to rapidly go-to-market with a major new innovation.
“ We have also prepared for the future, with the implementation of our roadmap for the 4 other programmes linked to our portfolio of products. All of this work has been carried out whilst respecting a strict policy of cost control and in close collaboration with the Board of Directors chaired by Philippe Lavielle."
Alongside DHA, Fermentalg is also developing four additional products between now and 2020 (DHA+, BM Bastille, Phycocyanin and Astaxanthin).
Fermentalg said it intends to make BM Bastille and Phycocyanin at its Industrial Development Unit (IDU) in Libourne, southwestern France.
The commissioning of the unit, which represents an estimated investment in the process of €23 million ($26m), is scheduled for 2018.
The delivery of the building (excluding equipment) is expected at the end of the third quarter of 2016 and has so far represented an investment of €6.2 million ($6.9m).
