News

TyraTech success results in milestone payment from Kraft Foods
17 December 2007

TyraTech, Inc. (AIM: TYR), the pioneer of safer, effective and natural pesticide products, today announces it has successfully completed its first stage of development with Kraft Foods (“Kraft”, NYSE: KFT) and received its first milestone payment.  The payment is part of an exclusive worldwide agreement announced last year with Kraft for the development of compounds used in functional foods and beverages intended to help prevent human parasitic infection in the developing world.   

The innovative partnership is enabled by TyraTech’s technology platform which has identified a proprietary formulation of all-natural active ingredients (“TyraTech Natural”) that are highly effective and are being developed to prevent parasitic worms and stop the cycle of re-infection.

The first stage of the project provided positive results on the preclinical efficacy of the TyraTech Natural anti-parasitic compounds in preventing the development of intestinal parasites.  Following a robust testing protocol, the team demonstrated TyraTech’s unique blend of natural ingredients proved effective in parasite prevention in a variety of conditions.  Separately, initial market assessments of parasite prevalence, limitations of current treatments, consumer awareness and interest in the new solution, combined with demographic factors indicated strong market potential.

Human parasitic infection is a global issue that the World Health Organization estimates as affecting over 2 billion people.  While there are a range of treatments currently in use that are effective in killing some parasites, none can be used regularly to prevent future infection.   The need for a functional food to combat parasites on an ongoing basis creates an entirely new market with significant potential. The TyraTech-Kraft ingredients are designed to be safe enough to use in food every day, which offers the prospect of a unique and affordable solution available to the people afflicted with this major health problem.  

Douglas Armstrong PhD, Chief Executive Officer of TyraTech said: “The success illustrated by this milestone achievement is a significant event for TyraTech in the development of functional foods with one of the pre-eminent global consumer products companies.  Working with Kraft is a tremendous opportunity and represents an important step in the expansion of the TyraTech platform into a large market with a massive unmet need. We believe that achieving this milestone significantly expands the value proposition for our shareholders.      

TyraTech has recently announced other key events, which have included the US release of its first insecticide product, and the initiation of sales for its Sustainable Solutions business unit.  Dr. Armstrong further commented: “We identified several aggressive revenue generation objectives to be reached by the end of 2007, and the Kraft milestone payment, along with our new product launches, clearly demonstrates that TyraTech is delivering to plan.”   

TyraTech and Kraft, a US$34 billion global leader in branded foods and beverages, initiated their partnership in December 2006.  It provides Kraft with rights to TyraTech’s innovative technology platform for the rapid development of new compounds initially targeted to prevent human parasitic infections when incorporated into functional foods.  Under the terms of the agreement, TyraTech received an upfront exclusivity fee and receives payments for each milestone successfully completed at designated stages of the project.  TyraTech will also receive royalties based on product sale revenues when new products are launched. 

Kelly Duffin Maxwell, Senior VP of Innovation for Kraft, stated: “The TyraTech partnership progress is encouraging and exciting, and is an important example of Kraft’s ongoing commitment to innovation; building worldwide brands and helping people live healthier lives.” 

 

For further information

TyraTech Inc. Alan Reade, Executive Chairman www.tyratech.com	1 (321) 409 - 7720
Nomura Code Securities
Charles Walker/ Clare Terlouw	Tel: +44 (0) 20 7776 1200
	www.nomuracode.com

Media enquiries:

Abchurch
Heather Salmond	Tel: +44 (0) 20 7398 7700
heather.salmond@abchurch-group.com
Gareth Mead
gareth.mead@abchurch-group.com	www.abchurch-group.com

 

About TyraTech

TyraTech is pioneering a new class of highly effective, non-toxic, pesticides and anti-parasitic compounds to address global agriculture, horticulture, functional foods, healthcare and veterinary markets. Using a revolutionary chemoreceptor screening process, TyraTech has identified proprietary blends of natural oils that stimulate the reactions and biological behaviour of insects and parasites so that they can be effectively repelled or killed. TyraTech’s technology prevents the development of resistance and avoids the environmental concerns and human health risks of chemical solutions whilst still being at least, if not more, effective.

The Company’s products have been validated through strong partnerships with multinational conglomerates operating within a growing US$23 billion worldwide market that is being increasingly driven by environmental legislation and end-user demand.

TyraTech continues to develop new product applications based on safe, natural ingredients with a broad range of partners around the world.

For further information, see www.tyratech.com

 

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