Burcon NutraScience Corporation (TSX - BU) announced today that the company has entered into a license agreement with Archer Daniels Midland Company ("ADM") for the worldwide production, distribution and sale of Burcon's CLARISOY® soy protein. CLARISOY is a unique soy protein product that is 100 percent soluble, transparent and very low in viscosity in low pH (acidic) beverages. Use of CLARISOY allows for the production of transparent, protein fortified beverages such as juices, soft drinks and sport drinks in the low pH range.
The license agreement gives ADM exclusive rights across all geographic regions and all potential product applications to produce, market and sell CLARISOY soy protein.
"We are excited to bring CLARISOY to market," said Bruce T. Bennett, general manager of Protein Specialties for ADM. "CLARISOY's potential in the global protein ingredient industry will be well served through our license agreement with Burcon. The versatility of CLARISOY complements our current product portfolio and increases application opportunities for our customers."
"Burcon is thrilled to work with ADM in commercializing CLARISOY. ADM's demonstrated excellence in the production and sale of food ingredients makes the company the ideal partner to commercialize CLARISOY soy protein," commented Johann F. Tergesen, president and COO of Burcon.
ADM will make royalty payments to Burcon on the sales of CLARISOY under the twenty-year license agreement. The maintenance of the CLARISOY soy protein patent portfolio during the term of the license agreement will be the responsibility of Burcon.
Today's announcement marks a watershed development for Burcon as the commercialization of CLARISOY provides Burcon with its first earnings stream.
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