Martek Biosciences Corp (Nasdaq: MATK), which makes omega 3 fatty acids from seaweed, is finally seeing its stock respond to positive announcements.
The latest announcement is for a 10-year supply agreement with Abbott Nutrition, a worldwide producer of infant formula products. Martek will serve as Abbott’s exclusive worldwide DHA and ARA supplier for all of its infant formula products. 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(TM) and life’sARA(TM), 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.
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