Pronova BioPharma will develop its business in the omega-3 consumer healthcare market over the next year, initially targeting the high concentrate dietary supplement market, which is expected to double in size over the next five years (source: GOED and Pronova estimates).
The development of the Consumer Healthcare business will offer substantial synergies with Pronova BioPharma's existing pharmaceutical business, which manufactures the highly successful Omacor/Lovaza drug. The first and only FDA and EU approved omega-3 derived pharmaceutical drug, Omacor/Lovaza has achieved blockbuster status and is sold in 57 countries. Pronova BioPharma is also developing a promising pipeline of prescription-only pharmaceutical products, including PRC-4016 which is currently in clinical trials for the treatment of combined dyslipidemia.
Pronova BioPharma has invested USD 500 million in recent years in creating world-leading, large capacity and high concentrate omega-3 manufacturing facilities in Norway and Denmark. The company is already the world's leading manufacturer and supplier of omega-3-derived active pharmaceutical ingredients. Consequently, the initial investment necessary to establish a Consumer Healthcare business is relatively small, and is estimated at USD 10 million over the next 12 months, which will be used to adjust the manufacturing process to the consumer health market.
The company will leverage its significant partnership experience to seek appropriate partners to market and sell its consumer products around the world and ensure rapid take-up and penetration.
The strong body of clinical data that has driven the success of Omacor/Lovaza has greatly increased awareness of the overall benefits of high grade omega-3 pharmaceuticals and supplements, which have been demonstrated to have a beneficial impact in a wide range of therapeutic areas, including cardiovascular health and metabolic conditions.
Use of omega-3 supplements is growing rapidly worldwide, with almost one in four people reporting use of an omega-3 product in the USA, up 64 percent from just five years ago (source: imn). The board of Pronova BioPharma believes the potential for continued growth of differentiated, high quality omega-3 supplements supported by clinical data is significant as awareness of their health benefits continues to expand in both developed and emerging markets.
Pronova BioPharma plans to enter the consumer healthcare market during the second half of 2012. The company will spend the next 12 months building the Consumer Healthcare organisation, adjusting the manufacturing processes for consumer products, initiating small clinical trials and developing distribution channels.
Morten Jurs, CEO of Pronova BioPharma, commented, "The combination of aging populations, changing lifestyles and the increasing awareness of the importance of omega-3 in maintaining good health are expected to drive strong growth in both pharmaceutical grade and high quality consumer-focused omega-3 products in the coming years."
"This new division will be highly complementary to Pronova BioPharma's existing pharmaceutical business, in which we have invested heavily in recent years to create the best manufacturing facilities and processes in the world and to develop a pipeline of promising new drugs. Having established a dominant position in the omega-3 pharmaceutical market, we are well positioned to leverage our existing infrastructure, knowledge, research, regulatory and partnership capabilities in order to drive a highly successful consumer business targeting a different segment of the population."