New Zealand Coastal Seafoods has entered into a non-binding Memorandum of Understanding (MoU) with Ingredients Plus.
This comes as an important step forward in its ongoing R&D and product development strategy, and Asia-Pacific distribution expansion.
Under the terms of the MoU, the Company and Ingredients Plus will work jointly on the development and distribution of a unique clinically-backed collagen product, manufactured from premium ling maw supplied by NZCS. The agreement includes a co-development plan for the product comprising a number of principal discussion terms, including but not limited to; clinical trials, cost-sharing, product pricing, marketing, IP, exclusivity and confidentiality.
Both parties will work together with RDC Clinical, a leading clinical research organisation based in Brisbane, in order to develop a trial framework that establishes the most robust data supporting the use-case of the proposed collagen product. Additional updates on the planned clinical trial will be made as they develop.
The proposed clinical trial initiative follows NZS’ recent success in commercialising a high-quality marine collagen powder, following the development of a more efficient, less costly process for collagen extraction from ling maw.
We are pleased to have secured this MoU with Ingredients Plus, which sets out the first step in our ongoing R&D and product development strategy
Any additional IP gained as part of the development process will be owned by NZS, or as agreed by the parties excluding IP already held by either party in the public domain. Clinical trial costs will be split evenly by both parties, adjusted on a pro-rata basis where government contributions (if any) are received. NZS are sufficiently funded to undertake the immediate costs of clinical trials.
With an established market footprint in the region, Ingredients Plus is a leading and independent supplier that serves customers throughout Australasia and South-East Asia. The group represents more than 20 global manufacturers and thousands of products, specialising in beauty/personal care and health, pharmaceuticals, and nutrition.
The production target outlined in the MoU has been set at 1,400kg for the first 12 months, with exclusivity rights between the parties to be negotiated in a separate supply agreement once production capacity has been validated.
New Zealand Coastal Seafoods CEO Andrew Peti said: “We are pleased to have secured this MoU with Ingredients Plus, which sets out the first step in our ongoing R&D and product development strategy, as well as a framework for the joint development of a leading new collagen product derived from ling maw via a clinical trial pathway.”
Peti continued: “In the development of our nutraceutical suite, we have identified a major market opportunity for a clinically-backed collagen product in the health and beauty sector, which more broadly continues to benefit from positive long-term supply trends.”
