Perth, June 10, 2008 AEST (ABN Newswire) - Stirling Products (ASX: STI) advises that its wholly-owned North American subsidiary, Stirling Products North America Inc (STI-NA), has successfully completed product validation trials in shrimp with a leading global animal pharma company for applications for its proprietary immunobiotic ProVale(TM).
STI-NA entered into an agreement with one of the top five animal pharma companies (name withheld for confidentiality reasons) in July 2007 (ASX 12 December 2007) to conduct a validation trial in challenged shrimp that would confirm the performance of ProVale(TM) prior to negotiating subsequent commercial arrangements.
"ProVale(TM) has previously been shown to increase the production in shrimp ponds by more than 36% and decrease the mortality of shrimp due to disease by more than 28%," indicated Mr Shane Patelakis, President, STI-NA. "The latest trials confirm the ability of ProVale(TM) to significantly improve production yield and survival of commercially raised shrimp even under challenged conditions," he added.
As part of the trial agreement, established between the two companies, there was an option for a period of exclusivity of three months beyond the study period, based on trial success and payment of the milestone. The animal pharma company has now exercised this option, triggering the milestone payment. The animal health company will conduct its required due diligence while both parties negotiate towards an appropriate agreement for the world-wide rights to formulate, distribute and/or commercialize ProVale(TM) for shrimp.
"We are very excited about this opportunity," indicated Dr Calvin London, CEO & Managing Director of Stirling Products Limited. "Not only does this provide confirmation of the potential of ProVale(TM), but it also provides valuable third party validation for the company. We look forward to progressing towards a formal sales and distribution agreement which would translate into significant revenue for the company and we will advise the market of our progress in due course," he added.
The trial conducted in South East Asia commenced in the last quarter of 2007 and was conducted completely independent of the company. The findings clearly support the efficacy of ProVale(TM) in improving survivability and overall yield of shrimp under challenged conditions. ProVale(TM) technology has the ability to enhance the performance of commercially farmed shrimp that translates into significant improvements in efficiencies for shrimp producers in disease challenged regions such as South East Asia.
Shrimp farming is one of the fastest growing sectors of aquaculture, particularly in South East Asia. As an example, the US alone imports over 550 million pounds of shrimp annually at a value of US$3.9 billion. Thailand exports 34% of this total figure (US$1.3 billion).
About ProVale(TM):
ProVale(TM) is a highly purified, safe and natural immune-stimulating bioactive extract for use as a livestock or pet animal feed supplement. This unique "immunobiotic" has the benefit of boosting the immune system against various bacterial and viral diseases of animals. The product already has sales for poultry and swine in North America with further sales opportunities expected in South America and South East Asia.
For more information visit PBI's website:
http://www.progressivebioactives.com
Contact
Dr London
TEL: +61-8-9480-1480
MOB: +61-400-204616
Company website www.stirlingproducts.net
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