Avoca Enters Supply Agreement with SGI
Avoca signed a supply agreement with Synthetic Genomics (SGI) to extract and commercialize natural astaxanthin from a strain of algae developed by SGI.
The multi-year supply agreement provides Avoca with exclusivity for product sales in North America. Pharmachem Laboratories will be responsible for marketing and sales, while SGI is developing the product through its Genovia Bio business unit, which is responsible for the development and commercialization of algal-based food, chemical and fuel products.
Natural astaxanthin is a supplement touting multiple clinically proven health benefits associated with its powerful antioxidant and anti-inflammatory properties. Natural astaxanthin is very difficult to produce; therefore, supply is constrained relative to demand. SGI has developed a process for production of natural astaxanthin from a phototrophic source and demonstrated commercial-scale manufacturing capability and performance over 18 months. SGI’s natural astaxanthin has FDA regulatory approval for dietary supplement applications.