Biotechnology firm enters agreement for value-added specialty oil products

Calgary, AB – May 28 – Biotech company SemBioSys Genetics says it has executed a development agreement with Arcadia Biosciences to co-develop value-added specialty oil products with potential nutraceutical applications.

Under the terms of the multi-year agreement, SemBioSys will use its safflower biotechnology capabilities to develop safflower oils rich with the omega 6 fatty acid gamma linolenic acid (GLA) for Arcadia. SemBioSys will receive research payments, milestone payments and royalties on new product sales. This follows the announcement of an agreement with Martek Biosciences in December of 2003 to develop a safflower oil rich with the omega 3 fatty acid Docosahexaenoic acid (DHA).

“We are pleased to be working with Arcadia on this exciting project” said Andrew Baum, president and CEO of SemBioSys. “It further validates the utility and value of our safflower biotechnology capabilities and complements the SemBioSys project with Martek Biosciences to develop a DHA rich safflower oil.”

SemBioSys also has other development or licensing agreements with Martek Biosciences, Syngenta, Lonza and Dow AgroSciences.