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news.Mead Johnson Nutrition Company has expanded its sole-supply agreement for DHA (docosahexaenoic acid) and ARA (arachidonic acid), with Martek Biosciences, for use in its infant formula products.
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Mead Johnson and Martek said that DHA and ARA are fatty acids important to infant development and growth. Clinical studies have demonstrated benefits for infants receiving DHA and ARA supplemented formula versus non-supplemented formula, including improved mental and visual development.
As per the agreement terms, Martek is expected to continue to be sole-source supplier of DHA and ARA for all of the infant formula products of Mead Johnson through December 31, 2015, an extension of four years beyond the earliest possible termination date of the current agreement.
Additionally, Martek is also expected to provide graduated price reductions to Mead Johnson over the time period of the extension, beginning in 2010. Mead Johnson also has the option to add another four years to the extension beyond 2015.
Dirk Hondmann, senior vice president of global research and development at Mead Johnson, said: “Mead Johnson established the inclusion of DHA and ARA in infant formula in the US. We continue to choose Martek as the supplier of these ingredients because of their technology and science.”