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Valensa contracts with Contract Biotics for astaxanthin

September 27, 2013
AlgaeIndustryMagazine.com

Valensa logoEustis, FL-based Valensa International and Contract Biotics, of La Jolla, CA, have announced a multi-year contract between the two companies for the supply of commercial quantities of the algae biomass used for the production of high quality astaxanthin. With this new supply source from Contract Biotics – a wholesale producer of high quality algae biomass and related biological compounds – Valensa has significantly expanded its capability to provide the market with formulated, condition-specific astaxanthin-based products.

According to Dr. Rudi E. Moerck, President & CEO of Valensa, supplies of algae biomass have been a limiting factor on the growth of the astaxanthin market for the last several years, even as demand has ramped up.  “Growing high quality algae biomass for the production of astaxanthin is a time-consuming and difficult task to undertake,” Moerck said. Over the past several years Valensa has visited and had discussions with virtually every existing and potential new algae grower around the world to support the long-term growth of our astaxanthin products business.”

“Contract Biotics is the first new producer to ship us commercial quantities of algae biomass that meets our quality standards. We are pleased to announce our validation of Contract Biotics’ capabilities as a new supplier,” he added. Although specific financial terms were not disclosed, the agreement does contain “guaranteed supply, guaranteed purchase” provisions.

Contract Biotics CEO Ken Reynolds commented on his company’s efforts leading up the agreement. “Working closely with a partner like Valensa has been ideal for us, in that they bring a wealth of knowledge of astaxanthin production, as well as substantial investments in the final production, quality control, packaging and business acumen necessary to bring successful nutritional products to market.”

“Many startups significantly underestimate the requirements and cost of QA/QC and Good Manufacturing Practices. Valensa’s expertise and capabilities in this area have been invaluable as it allows us to focus on what we do best, which is to grow tons of algae,” he added.

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