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`http://www.nutraingredients-usa.com/Suppliers2/Neptune-Degussa-deal-to-develop-phospholipids-
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`Neptune-Degussa deal to develop
`phospholipids, adapt krill oil
`
`By Jess Halliday
`
`, 12-Dec-2005
`
`Related tags: NKO, Krill, Phospholipids, Neptune, Degussa
`
`Neptune Technologies and Bioressources has entered into an alliance with Germany's
`Degussa over two projects that will facilitate the use of its krill oil and potent derivatives in
`nutraceuticals and foods.
`
`The alliance consists of two projects that will run concurrently. One involves
`making improvements to Neptune Krill Oil (NKO) to make it suitable for
`functional foods, and the other to extract, purify and isolate the
`phospholipids from the mass at the heart of NKO.
`
`Tina Sampalis, VP R&D and business development, explained to
`NutraIngredients-USA.com that there are six phospholipids in the mass, but
`the companies are mainly interested in four of them: PhosphatidylSerine,
`which has been researched for its neurodegeneration protective properties;
`PhosphatidylCholin, which has shown promise in cognition and raising HDL
`('good') cholesterol; and PhosphatidylEhtanolamine and
`PhosphatidylInositol, both of which offer general benefits.
`
`"We are entering the market we have always aimed for: cognitive function,"
`said Sampalis.
`
`According to Neptune, these are the only known phospholipid carriers of
`EPA and DHA omega-3 and antioxidants. Because of their high astaxanthin
`(antioxidant) content, they are more stable than other EPA/DHA carriers - a
`desirable quality since omega-3 fatty acids are particularly susceptible to
`oxidation.
`
`It is expected that this project will open the way for Neptune and Degussa to
`take phospholipids into the nutraceutical, cosmeceutical and nutrigenomic
`medical food markets. At a later stage they hope to develop even higher
`purity phospholipids for biopharmaceutical products.
`
`As for the NKO adaptation, Sampalis said that Degussa will use its
`technology to remove the seafood taste and smell of the oil, and therefore
`make it suitable for use in food products. While she was not able to give
`details of the technology Degussa will use to achieve this, she was clear that it does not involve
`microencapsulation, a method used by a number of ingredients companies to achieve similar
`results for other omega-3 containing oils. Degussa is renowned for its expertise in supercritical
`CO2 extraction.
`
`RIMFROST EXHIBIT 1031 page 0001
`http://www.nutraingredients-usa.com/Suppliers2/Neptune-Degussa-deal-to-develop-phos...
`12/29/2016
`
`
`
`Neptune-Degussa deal to develop phospholipids, adapt krill oil
`
`Page 2 of 5
`
`The agreement contains an exclusivity clause governing the activities of both companies - they
`have agreed not to work with other parties to develop similar ingredients. While Neptune will retain
`its intellectual property on the products and Degussa will retain its on the technology, both
`companies will distribute the end result.
`
`Neptune has recently received approval of its logo and trademark by the European Registration
`Office, a crucial step towards rolling out NKO to Europe, where Sampalis believes it will prove
`popular in functional foods, and in particular in infant formula.
`
`This effectively makes NKO available to 860 million new consumers. At present it is operating at 45
`percent capacity, producing 60,000 kg of NKO per year. But by the end of 2006 anticipates
`reaching full capacity, after which point a new production plant will be required.
`
`The new plant will be located on the west coast of the United States, where the majority of
`Neptune's customers are based. Moreover, since the fish from which the oil is sourced come from
`the Antarctic Ocean, a move to that side of the American land mass will cut transportation costs
`considerably.
`
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`Sampalis said it is anticipated that all production of NKO will be moved to the US facility once it is
`operational, but the company does not plan to dispose of its Quebec base. Rather, this will be
`turned over to the phospholipids.
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`RIMFROST EXHIBIT 1031 page 0002
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`12/29/2016
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`RIMFROST EXHIBIT 1031 page 0003
`http://www.nutraingredients-usa.com/Suppliers2/Neptune-Degussa-deal-to-develop-phos...
`12/29/2016
`
`
`
`Neptune-Degussa deal to develop phospholipids, adapt krill oil
`
`Page 4 of 5
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`RIMFROST EXHIBIT 1031 page 0004
`http://www.nutraingredients-usa.com/Suppliers2/Neptune-Degussa-deal-to-develop-phos...
`12/29/2016
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`
`Neptune-Degussa deal to develop phospholipids, adapt krill oil
`
`Page 5 of 5
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`RIMFROST EXHIBIT 1031 page 0005
`http://www.nutraingredients-usa.com/Suppliers2/Neptune-Degussa-deal-to-develop-phos...
`12/29/2016
`
`