Innovasjon Norge grants support to chitin factory
Navamedic’s 100 percent owned subsidiary ChitiNor AS has received notice from Innovasjon Norge (Innovation Norway) that it will grant support of NOK 2 million plus NOK 2 million in loans to the establishment of a chitin production facility in Senjahopen in Northern Norway. This covers a significant share of the capital expenditure in the project, which is expected to be in regular production from the beginning of 2007.
(Lysaker, Norway, 11 May 2006) Navamedic in January announced that it had entered into an agreement with the Nergård Group to build a chitin factory adjacent to Nergård’s shrimp peeling facilities at Senjahopen. Chitin from shrimp shells is the starting material for production of glucosamine. This is the active pharmaceutical ingredient in Navamedic’s product, which in January was approved for medical treatment of osteoarthritis symptoms in 20 European countries.
-We aim to become the first fully vertically integrated player in the glucosamine industry, and believe the proprietary production technology we are developing will generate a lasting competitive advantage. We are grateful for the support from Innovasjon Norge, which will cover a significant part of the investments in the chitin facilities, says CEO Øyvind W. Brekke in Navamedic.
Navamedic has already signed a Letter of Intent to sell the first year’s chitin production to Lytone Inc. in Taiwan, as the company will not immediately put the chitin to use in its own proprietary production of glucosamine HCl.
Navamedic was listed on the SMB list on Oslo Stock Exchange on 31 March 2006.
About Navamedic ASA:
Navamedic is a Norwegian speciality pharmaceutical company focusing on the development and production of glucosamine HCl (hydrochloride) based medicines. Glucosamine is a generic active ingredient which relieves pain and improves function in patients with mild to moderate osteoarthritis. The product has a favourable safety profile. Osteoarthritis is a chronic disease which affects a large and growing share of the world’s population. Navamedic aims to become a leading company in the glucosamine industry, with a competitive advantage in proprietary production technology. The company’s products will be sold through a network of sales, marketing and distribution partners. Navamedic’s product Glucomed® has been approved as a medicine against osteoarthritis in 20 European countries. The product was launched in Sweden in December 2005, and Navamedic prepares product launches in further European countries in 2006.
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- Navamedic ASA
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