Neptune Technologies & Bioressources of Canada has said it will reach profitability next year thanks to the first order for its marine oil extracted from krill sold under the brand name NKO.
The order, from Neptune's US distributor CPB International, is valued at C$5.4 million (€3.65m) and will account for 40 per cent of the company's production capacity in its first year of business. Neptune said it expected the order to help it reach a net profit at the end of its financial year in May 2003.
CPB is a bulk nutritional and pharmaceutical intermediate distributor located in New Jersey, and it has worked hard with Neptune to present the benefits of NKO and its enzyme-rich by-products NKE, NLK and NKA to the nutraceutical industry.
"This first order allows us to move ahead towards the first main goal of our strategic development plan which is to pre-sell our first two years' production," said Henri Harland, president and CEO of Neptune.
"During this period, we're developing new products from other marine biomasses while validating the benefits of our existing natural products for various human conditions. This step will allow us to increase the company's value, which in turn will benefit our supportive shareholders. The company is progressing well."
As well as krill, Neptune extracts marine oils from other under-exploited marine resources such as red crab and calanus. Its products are used in the nutraceutical, cosmetic, cosmeceutical and biopharmaceutical markets.
Louis A. Lapointe, Neptune's sales director, said he was pleased with the company's performance and looked forward to maintaining and increasing profitability in the future. "The high level of interest in the nutraceutical world concerning NKO is very reassuring as well as exciting. Nutraceutical companies are constantly searching for new innovative products with value added benefits backed by clinical studies. NKO meets these demands.
"Furthermore, Neptune's marketing strategy of establishing the NKO trademark and logo throughout the industry reassures the clients in our firm commitment of becoming an established reputable raw material manufacturer as well as a strategic marketing partner," he said.