Martek Signs Multi-Year Worldwide Sole Source Supply Agreement with Abbott
Martek will serve as Abbott's exclusive worldwide DHA and ARA supplier for all of its infant formula products. The agreement provides for a 10-year term with Abbott having the right to terminate the arrangement as of January 2012.
09/10/07 Martek Biosciences Corporation has entered into a long-term supply agreement with Abbott Nutrition, a leading worldwide producer of infant formula products including the Similac Advance brand. Martek will serve as Abbott's exclusive worldwide DHA and ARA supplier for all of its infant formula products. The agreement provides for a 10-year term with Abbott having the right to terminate the arrangement as of January 2012.
Martek has been supplying DHA and ARA to Abbott for use in infant formula products under a 25-year license agreement signed in 2000 which remains in effect. In the new supply agreement, Abbott has committed to purchase all of its worldwide DHA and ARA requirements from Martek.
Martek manufactures nutritional oils that contain the long-chain polyunsaturated fatty acids DHA and ARA, both of which are naturally present in breast milk. Clinical studies have demonstrated benefits for infants receiving formula supplemented with DHA and ARA. Martek's proprietary blend of DHA and ARA, marketed under the brand names life'sDHA and life'sARA, is currently used in over 95% of U.S. infant formulas. Additionally, infant formula containing life'sDHA and life'sARA has been consumed by over 20 million infants in over 65 countries worldwide.
"This new agreement affirms the benefits of adding Martek's DHA and ARA to infant formula," said Steve Dubin, CEO of Martek. "With this new arrangement, two-thirds of Martek's business in the infant formula market is subject to multi-year, sole source agreements."
