Navamedic's subsidiary Vitaflo Scandinavia AB and the Swedish corporation Lantmännen AF - Faktor AB have signed an agreement for the products SPC- Flakes and Salovum. Vitaflo will have the rights to market and sell the products world wide from July 2008. Both products fall within the knowledge area Medical Nutrition and fit well into the company's existing product portfolio.
- We are extremely satisfied with the possibility to broaden our already large product portfolio with these products. With our knowledge, broad experience and world wide contacts within Medical Nutrition, we believe we can market the products in a satisfying way for both parties, says Øyvind Brekke, CEO in Navamedic ASA.
- With our long and successful presence within the area Metabolic Nutrition, we are well prepared for this challenge and we are thrilled by the interesting possibilities this project opens, says Tina Madsen, CEO for Vitaflo.
Swedish scientists were the first to discover the Antisecretory protein, Factor AF, an endogenous protein found in all living species, including the human body, regulating the body's secretory and Ion balance. Scientists have found and documented, in a long row of Clinical studies, that people suffering from IBD, Mb Meniere and severe diarrhoea, have low amounts of protein AF. Both Swedish and international studies have shown that SPC-Flakes and Salovum can be used effectively of regulating the level of protein AF to therapeutic levels.
- Both products have shown effect in a number of clinical studies in Sweden and abroad, and are subject to patents all over the world, says Lars Sjöstrand, CEO for Lantmännen AS-Faktor AB.
SPC-Flakes is used in the treatment of inflammatory bowel disease (IBD) and Mb Ménières disease causing dizziness. Salovum is effective in the acute treatment of inflammatory and secretory conditions.
-Each year, diarrhoea causes the death of about five million children world wide. Therefore, I am happy to announce that in Pakistan, the treatment with Salovum gave significant improvements on children with severe diarrhoea, says Lars Sjöstrand.
Vitaflo will have the responsibility for the sales and marketing of SPC-Flakes and Salovum world wide from July 2008. Vitaflo will sell the products in markets where Vitaflo is already present and through well known partners elsewhere. The products are currently on the market in Sweden. Without any marketing efforts, the products sold for SEK 3-4 million in 2007.
The agreement has an initial duration of 4 years and may be prolonged. Lantmännen AF - Faktor AB and Vitaflo Scandinavia AB are interested in a long term agreement and Vitaflo will not pay any up-front payments or license fee for the rights.
The products are classified as food for special medical purpose. The patents last until 2014, 2016 respectively, and new patent applications were filed 2006.
Navamedic is a fast-growing specialty pharma company. The company is well underway with the international commercialization of its osteoarthritis medication Glucomed. In 2006, Glucomed was the first glucosamine product approved by European authorities for marketing as a drug in all EU countries. Through the acquisition of Vitaflo Scandinavia AB in 2007, Navamedic initiated an expansion of its strategy to include marketing of pharmaceutical products in selected countries. Vitaflo represents more than 45 products from over 20 foreign companies on the Nordic markets, and has shown significant revenue growth over the last 5 years. Navamedic aspires to grow both through increased geographical presence and through a broadened product portfolio within selected therapeutic areas. In addition to organic growth, the company will continue to evaluate further company and/or product acquisitions.