Aqua Bounty In Trials With Leading Drug Manufacturer

Aqua Bounty Technologies, Inc., a biotechnology company focused on enhancing productivity in the aquaculture market, announces that it has signed a Term sheet with Stirling Products North America Inc. for an exclusive option to distribute ProVale™ in the Chilean salmon market. ProVale is an environmentally friendly and highly bioactive form of the currently marketed beta glucan product for immune stimulation and disease management in fish. Stirling Products NA is the North American subsidiary to Stirling Products Limited. 

Under the terms of the agreement, Aqua Bounty will manage field trials required for proof of efficacy and market approval of the product. The Company will test ProVale as a replacement for antibiotics in the diets of farmed salmon. Subject to regulatory approval, the trials are expected to begin shortly and last for a period of two to three months.  During this time, Aqua Bounty will work with Stirling Products NA to finalize an agreement for commercial distribution which management estimates will be decided towards the end of the third quarter. 

The strategic partnership will allow Aqua Bounty to target the Chilean salmon market which is the second largest in the world behind Norway.  Farmed salmon is valued at over US$4.5 billion of which one third comes from Chile, and this amount is estimated to double in the next six years in direct response to increased world-wide demand. Sales of existing pharmaceuticals and immunostimulants in Chile for the salmon industry totalled close to US$20 million in 2007, and management conservatively estimates the initial market for ProVale™ in Chile to be over US$3 million per year.

ProVale is the latest natural bioactive ingredient for immune health and productivity solutions for the agriculture, aquaculture and pet feed industries, produced by patented technology at Stirling’s Canadian facility, Progressive Bio Actives Inc (PBI).

The option granted to Aqua Bounty will be exercisable at Aqua Bounty’s discretion.

Elliot Entis, Chief Executive Officer of Aqua Bounty commented: “We are delighted to have signed this agreement with Stirling Products NA, who is an excellent strategic partner for us. Provale is a natural extension of our approach to limiting disease impacts in aquaculture without compromising environmental or human health and lessening reliance on antibiotics. It fits in well with our focus on building strong relationships with salmon farmers.  We look forward to a successful partnership with the company as part of our continued commitment to capitalise on our core market.”

Dr Calvin London, Chief Executive Officer and Managing Director of Stirling Products North America commented: “I am sure that Aqua Bounty will prove to be an outstanding partner for this project. The opportunity with Aqua Bounty provides us with an obvious upside in terms of additional revenue potential from sales of ProVale, but it also provides opportunities for future developments of specialised feeds and disease protection formulations for farmed fish.”