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Martek Plans 2011 Supplement Launches Through Amerifit Subsidiary

This article was originally published in The Tan Sheet

Executive Summary

Martek Biosciences' dietary supplement pipeline comes into focus as the developer of algae-based omega-3 oils lines up a slate of products to launch in 2011 through its Amerifit Brands business

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Martek Biosciences CEO Steve Dubin says the nutritional oils firm will offset price reductions in extended infant formula supply contracts with Mead Johnson and Danone through formula market growth, new production technologies and expansion of its Amerifit Brands business. Dubin said during an earnings call Sept. 1 that Amerifit will launch five to seven supplement stock-keeping units in 2011 (1"The Tan Sheet" Aug. 16, 2010). Martek reported cost reductions in life'sDHA and life'sARA production, and efficiencies from Amerifit - acquired in January - helped swell its third-quarter gross margin to nearly 50 percent from 44 percent in the year-ago period. Dubin said he expects further margin, revenue and earnings growth in 2011. The Columbia, Md.-based firm recorded net sales of $114 million in the May-July timeframe, a 51.9 percent increase

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