In May 1996, Verenium entered into a collaboration agreement with Danisco Animal Nutrition (formerly Finnfeeds International, Ltd.) to jointly identify and develop a novel phytase enzyme that when used as an additive in animal feed applications, allows higher utilization of phytic acid phosphates from the feed, thereby increasing its nutritional value. The addition of phytase to animal feed reduces the need for inorganic phosphorus supplementation and lowers the level of harmful phosphates that are introduced to the environment through animal waste, resulting in inorganic phosphate cost savings and a significant reduction in environmental pollution. Following the completion of the initial objectives of our agreement with Danisco, we entered into a license agreement in December 1998 to commercialize a phytase enzyme developed under the collaboration agreement, named Phyzyme™ XP phytase. Under the terms of the license agreement, we granted Danisco an exclusive license to manufacture, use, and sell the developed enzyme. In consideration for the license, Verenium is entitled to a royalty on related product sales made by Danisco equal to 50% of Danisco's cumulative profit on sales of Phyzyme™ XP phytase.
In March 2003, the FDA approved Phyzyme™ XP animal feed enzyme, which we developed in collaboration with Danisco.
Additionally, we entered into a manufacturing agreement with Danisco to supply commercial quantities of Phyzyme™ XP at Verenium's cost of manufacture.
Danisco Animal Nutrition (UK) is the feed ingredients business unit of Danisco A/S, Denmark, one of the world's leading suppliers of food ingredients. Danisco’s animal nutrition division was first established in the early 1980’s and pioneered the development and use of enzymes and betaine in animal nutrition. Today, the division supplies enzymes, betaine and flavors to improve the nutrition of poultry, pigs and some aqua species. The division’s mission is to provide sustainable animal nutrition solutions that meet the consumer’s demand for safe, high quality food at an affordable price, with care and attention to the environment. For additional information visit www.danisco.com/animalnutrition.
