Hofseth BioCare ASA has entered into an agreement to supply its OmeGo salmon oil capsules to Zhejiang Holley International Co., Ltd., whose main business involves sales and marketing of health food and food supplement on the Chinese market.
Its parent company, Holley Group Co., Ltd., is one of the top producers and distributors of pharmaceuticals through its subsidiaries in China.
Deliveries of commercial volumes will start in July 2015, and major marketing initiatives will commence immediately. Marketing and sales will be done through a B2C ecommerce platform, social media as well as a network of 6,000 pharmacies and retail stores. Hofseth BioCare expects to book substantial revenues from the agreement in the third quarter.
The parties will explore the possibilities for Hofseth BioCare's other products, calcium and protein, after launching the salmon oil. Calcium is a widely accepted food supplement in China. Protein-enriched snacks are increasingly popular among young people.
"Fish oil is popular with the increasingly health-conscious Chinese middle class. However, many consumers are concerned with product quality and safety, and there is a willingness to pay for quality and purity that can be traced to its origin. Together with Hofseth BioCare we will build a top fish oil brand in China," said Dr. Yuming Feng, Chairman and Chief Executive Officer of Zhejiang Holley International.
"This is a breakthrough for Hofseth BioCare. We are extremely proud to be able to partner with a major force in the very large Chinese market," said Jon Olav Ødegård, Chief Executive Officer of Hofseth BioCare ASA.
"This is also a direct result of the recently announced agreement to set up a sales office in Tokyo, Japan, with our partner Alliance Seafood. As we said, we expected this move to lead to sales in Asian markets besides Japan," Mr. Ødegård added.
According to the agreement, Hofseth BioCare will deliver salmon oil produced at the company's plant in Midsund, Norway. Production of the finished OmeGo capsules will be done by Hofseth BioCare's partner Pharmatech in Fredrikstad, Norway.
OmeGo capsules, taken once a day, have shown early clinical success in lowering CVD markers such as oxidisedLDL-GP, which may help reduce the formation of plaque in the circulatory system thereby helping improve cardiovascular health.
For more information, please contact:
Jon Olav Ødegård, CEO Hofseth BioCare ASA
Mobile: +47 93632966
Email: joo@h-bc.no
Jon Olav Ødegård, CEO Hofseth BioCare ASA
Mobile: +47 93632966
Email: joo@h-bc.no
About Hofseth BioCare:
Hofseth BioCare is a Norwegian biotech company that offers high-value ingredients and finished products for humans and pets. The company is founded on the core values of sustainability, traceability and optimal utilization of natural resources. Through an innovative hydrolysis technology, Hofseth BioCare is able to preserve the quality of salmon oil, proteins and calcium, prepared of fresh salmon off-cuts. Hofseth BioCare`s objective is to contribute to the efficient use of marine resources and deliver quality products for ingredients and finished consumer products in the nutrition market.
About Zhejiang Holley International:
Zhejiang Holley International engages in the sales and marketing of health foods and food supplements. It is a part of Holley Group, which was incorporated in Hangzhou, China, in 1970. The group has more than 10,000 employees around the world, with subsidiaries and branches in North America, South-East Asia, Europe and Africa. Holley is a diversified global manufacturing group with activities in fields also including pharmaceuticals.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.