Provexis and DSM close to global rights deal

UK-based start-up Provexis has signed a Letter of Intent with its biggest shareholder, DSM, that will give the nutritional products division of the Dutch company exclusive global rights to Provexis’s tomato extract Fruitflow technology.

The LOI outlines very broadly outlines that Provexis will focus on developing Fruitflow and DSM will use its global manufacturing, marketing and distribution muscle to commercialise it.

The undisclosed deal comes in the wake of Provexis winning an article 13.5 blood circulation health claim in the European Union late last year and forms part of DSM venture capital spending that typically totals about €75m per year.

“We firmly believe that the expertise, scale and reputation of DSM will underpin the commercial success of Fruitflow,” said Provexis chief executive officer, Stephen Moon.

DSM acquired 29.3 per cent of Provexis for €1.87m in 2008.

Provexis shares were trading on the London Stock Exchange’s AIM index this morning at £6.80, up 2.26 per cent from Friday’s close.