DSM Venturing has invested in Lipid Technologies Provider AB (LTP), a Swedish privately owned company. LTP develops, produces and commercializes lipid-based ingredients and formulations for functional food products, skin care products and drug delivery systems. LTP’s lead product Reducal™ (derived from palm oil and oat oil) is a functional food ingredient, addressing weight management. When used in a food product, Reducal™ has a scientifically substantiated effect of prolonging the feeling of satiety, resulting in significant reductions in food intake in subsequent meals. Currently, negotiations are ongoing with a number of leading Dairy Food groups, which will result in Reducal™ being initially launched as a weight management ingredient in the fruit and drinking yogurt product categories.
Part of DSM’s strategy is to innovate and grow in Food Ingredients and Pharmaceutical Intermediates. Paul Hamm, President of DSM Venturing & Business Development said: “Our investment in LTP will contribute to DSM’s innovation and growth in the area of Food Ingredients, especially nutraceuticals. Furthermore, DSM might also benefit from LTP’s technology platform in the delivery and formulation of cosmetic and pharmaceutical ingredients.We expect our investment to trigger mutually beneficial development projects between LTP and DSM Business Groups like DSM Food Specialties.”
LTP’s co-founders and managing directors Jörgen Quick and Bengt Herslöf stated: “We welcome the investment by DSM and we are convinced that it represents a significant opportunity for the further development of LTP´s technologies in several promising areas. DSM´s technological and industrial experience will makean important contribution to the commercialization of LTP´s product portfolio.”
DSM Venturing led this investment round together with CIMON Medical, a Swedish venture capital company and main shareholder in LTP.
DSM Venturing
DSM Venturing is part of DSM’s Venturing and Business Development business group and was formed in 2001. DSM Venturing is focused on direct investments in early stage companies in DSM’s strategic growth fields: Food Ingredients, Pharmaceutical Intermediates and Performance Materials. Furthermore, it participates in several venture capital funds active in these fields. The investment in LTP is one of a growing number of direct investments by DSM Venturing. For more information about DSM Venturing, see www.dsm-venturing.com.
CIMON Medical AB
CIMON Medical is a Swedish venture capital company specialized in life science and medical technology. Established in 1999 and based in Karlshamn and Stockholm, CIMON takes a very active part in its portfolio companies through their development and commercialization phase. CIMON has been the largest investor in LTP since the year 2000. For more information see www.cimon.se.
LTP Lipid Technologies Provider
Lipid Technologies Provider is a Swedish company based on over 15 years of experience with production and development of lipids. LTP identifies new lipids and lipid systems suitable for areas of food products, skin care and drug delivery. The main goal is to develop lipid carriers i.e. combinations of lipids which can incorporate active components or show unique functional properties.
LTP´s concept for Functional Foods is to use the well-known drug delivery approach for nutrients, i.e. nutrient delivery. This represents a unique way of obtaining food products with reproducible physiological properties. An example is Reducal™, based on fractions of palm oil and oat oil for appetite control. The effect of Reducal™ has been tested and reported in several published clinical studies. It is proven that a 20-30% reduction in caloric intake at subsequent meals compared to milk fat is possible when Reducal™ is part of a normal meal.
Another application for LTP´s lipid systems is to increase the bioavailability and efficacy of nutrients. This concept of nutrient delivery has been tested clinically with significant results on components with well-known poor absorption.
Although LTP focuses on the development of functional food ingredients and formulations, it is also active in lipid-based skin care ingredients. The first product currently on the market in Sweden is a non-irritant moisturizing cream for dry skin treatment (Galactobase™). The lipid carrier in this application enables a prolonged moisturizing effect with no irritation to the skin.
LTP has chosen to partner for the development of drug delivery applications of its lipid technology platform. For additional information see www.lipid.se.
DSM
DSM is active worldwide in life science products, performance materials and industrial chemicals. The group has annual sales (pro forma including the recently acquired DNP business) of around EUR 8 billion and employs about 25,500 people across the world. DSM ranks among the global leaders in many of its fields. The company’s strategic aim is to grow its sales – partly through acquisitions – to a level of approximately EUR 10 billion by 2005. By that time specialties, i.e. advanced chemical and biotechnological products for the life science industry and performance materials should generate at least 80% of sales. This strategy represents a continuation of the company’s ongoing transformation and concentration on global leadership positions in high-added-value activities characterized by high growth and more stable profit levels. More information about DSM can be found at www.dsm.com.
