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By Terence Chea
Martek Biosciences Corp. said May 17 that the Food and Drug
Administration has concluded
that its nutritional oils are
safe, essentially
clearing the way for their sale in infant formula in the United
States.
The oils are already sold in infant formula
in more than 60 countries. But until now they were not approved
for sale in this country, which represents one-third of the
$6 billion worldwide market for infant formula.
"We are very optimistic that by
the end of the year you'll see products with Martek's oils
in the U.S.," said Pete Buzy, the Columbia
company's chief financial officer.
Food additives such as Martek's oils require
an independent panel of experts to certify that they are "generally
recognized as safe," or GRAS, and the
FDA must approve their GRAS status. Martek submitted its application
for FDA review in February 2000, and yesterday the company
said the agency approved
the oils' GRAS status after reviewing data from
clinical studies.
Martek officials believe FDA clearance
of the oils could substantially boost the company's revenue.
The company typically receives about 5 percent from the sales
of infant formula that contains its oils, which means it could
generate as much as $100 million annually in the $2 billion
US market.
Martek has licensed its oils to four major
formula manufacturers, including Wyeth-Ayerst Nutritionals,
Mead Johnson Nutritionals and Abbott Laboratories, which represent
about 60 percent of the world's formula production. The
manufacturers must separately gain regulatory approval to
add the oils to their US products.
Officials at Wyeth-Ayerst and Mead Johnson,
which together sell more than 80 percent of the infant formula
sold in this country, would not comment directly on their
plans to sell formula with Martek's oils in the United States.
Martek's oils,
Dhasco and Arasco, contain two fatty acids that are naturally
present in breast milk but not added to most infant formulas.
Scientific studies have found that the
oils boost an infant's intelligence
and vision, and several international health organizations
have endorsed their use.
Infant formula with Martek's oils typically
cost about 15 percent more than regular formula, but Martek
officials believe most parents are willing to pay for its
long-term nutritional benefits.
"Parents are willing to pay a little
more for better nutrition for their kids," Buzy said.
"Having these fatty acids for the first year of life
will give you immeasurable benefit in terms of IQ and vision
for the rest of your life."
Washington
Post Friday,
May 18, 2001; Page E05
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