Bio..meldown could contribute to global warming!

FMC BioPolymer and BioProgress execute a multi-million dollar Global Licensing Agreement
BioProgress plc (“BioProgress”) (LSE:AIM:BPRG) has executed agreements with FMC BioPolymer (“FMC”), a business unit of FMC Corporation (NYSE:FMC) whereby FMC has acquired an exclusive worldwide licence for the BioProgress NROBE® dosage form, process, equipment and enabling technology. FMC will assume full responsibility for the commercialisation of NROBE®.

The licensing agreement signed today runs to 2023 and under its terms FMC has provided contractual assurances that a minimum number of NROBE® machines will be purchased from BioProgress within the first six years following commercialisation. The sales value of machines during this initial period is expected to exceed $80 million.

In addition, FMC has contracted to purchase from BioProgress a minimum of 50% of its global NROBE® film requirement for the next three years.

The value of the contract is not entirely quantifiable, as BioProgress’ revenues will depend partly on the usage that FMC’s customers make of each machine. However, it is the expectation of BioProgress that the contracts signed today are likely to generate a minimum of $160 million of revenue to BioProgress over the first six years following commercialisation, including machine sales, film manufacturing contract sales and royalties payable to BPRG on the revenues generated by FMC from sales of film, whether produced or developed by BioProgress or by FMC, for use with the NROBE® dosage form.

Graham Hind, Chief Executive of BioProgress, said: “This deal marks a very significant step in our development and is a deal which we expect will deliver a significant and increasing revenue stream to BioProgress through to 2023. By partnering with FMC BioPolymer, we have a global offering with an expert pharmaceutical supplier. Broad commercial relevance will be demonstrated by the strength of the NROBE® product and the reach of FMC. We believe NROBE® can capture a significant share of the sizeable market for capsules and tablets over the long-term.

Robin Mitchell, business director of the FMC unit that will focus on NROBE® said, “We are creating a focused, experienced and highly motivated team to push this technology forward. We are very excited about the capabilities of NROBE® and its future role in oral pharmaceutical dosage forms and I am confident that we have the means to succeed. It is vital, however, that all aspects of our business model meet the expectations of prospective pharmaceutical customers. This includes the soundness of the base technology, the highest possible standards for supply of equipment, film and other materials, through to service and support.”

David Simcox, General Manager of FMC’s Pharmaceutical and Personal Care business, said: “As a new dosage form concept, we believe that NROBE® has the potential to deliver benefits in the form of consumer product appeal and product differentiation, manufacturing process efficiencies, and simpler and more rapid product development. NROBE® may also improve the oral delivery of certain drugs.


“This is a further demonstration of FMC’s commitment to a strategy of growth through the effective combination of internal and external expertise and technologies. FMC BioPolymer has expertise and resources that will help bring NROBE® to market efficiently with a robust commercial model. Our proprietary biopolymer technologies are a great compliment to the NROBE® system that BioProgress has developed.”