In California, Verenium and Novus International announced a strategic collaboration to jointly develop and commercialize a suite of new enzyme products from Verenium’s late-stage product pipeline targeting the poultry, swine, beef, dairy, aquaculture and companion animals markets. The companies will partner equally to fund development and commercialization and share in the profits, as well as provide other resources and expertise that would otherwise have been funded solely by Verenium.
Verenium will receive license payments of $2.5 million upon signing and $2.5 million following regulatory filings or commercial activity. Enzymes are used in the animal health and nutrition market to allow livestock, poultry, aquaculture and companion animals to more readily digest and absorb the nutrients naturally occurring in grains and protein meals. Global sales of animal feed enzymes are estimated to have reached $520 million in 2010, and are projected to reach $720 million by 2015.
In related news from Florida, Dyadic International, Inc. has entered into a long-term research, development and license agreement with a key provider of animal nutritional solutions throughout the world to develop, manufacture and commercialize animal feed enzyme products. As part of this agreement, Dyadic has granted the Commercial Partner a worldwide license to use the developed C1 fungal strains to manufacture and sell animal feed enzyme products. Dyadic will receive an upfront access fee and will be eligible to receive a commercial milestone payment as well as royalties based on the Commercial Partner’s worldwide sales of products which utilize the C1 technology platform.