VANCOUVER, June 19 /CNW/ - Burcon NutraScience Corporation (TSX-V: BU) a pioneer in the development of food-grade canola proteins, announces that, in conjunction with its license and development partner, Archer Daniels Midland ("ADM"), an agricultural processor, it is proceeding to pursue regulatory recognition for Puratein(R) and Supertein(TM) and has amended the license and development agreement to expedite the process.
Puratein(R) and Supertein(TM) are expected to participate with soy, dairy, and egg proteins in the expanding multi-billion-dollar protein ingredient market, with potential uses in prepared foods, nutritional supplements, and personal care products.
Canola protein does not form a part of the traditional North American human diet and as such certain scientific studies including toxicology assessments - such as feeding trials - will be undertaken by third-party contract research organizations. It is currently projected that the required scientific studies will be initiated within the next quarter.
The scientific studies to be undertaken will support a U.S. GRAS affirmation process and will be completed to standards that will also allow their use in making application for regulatory approval under the Novel Foods process in the European Community as well as in other countries such as Canada.
With the intention of expediting the regulatory approval process, Burcon and ADM have agreed to amend the license and development agreement dated September 16, 2003 made among Burcon NutraScience Corporation, Burcon NutraScience (MB) Corp. and ADM (the "License and Development Agreement"). Under the terms of the amendment, there is now a defined cost sharing structure for all of the third-party expenses incurred in the regulatory recognition process. The amendment provides that either ADM or Burcon will reimburse the other on the occurrence of certain events. If ADM chooses not to proceed with the license under the License and Development Agreement and terminates it in accordance with specific provisions under the agreement, then Burcon will reimburse ADM for its share of the costs incurred in the regulatory recognition process. Alternatively, if ADM chooses to proceed with the license then ADM will reimburse Burcon for all of its costs incurred in the regulatory recognition process. The total cost of the regulatory process is currently estimated at US$1.1 million.
"This is a major step on the path to commercializing the world's first food-grade canola proteins," stated Johann F. Tergesen, Burcon's President & COO who added, "We look forward to establishing that Puratein(R) and Supertein(TM) are safe food ingredients. Together, we continue to advance what we believe is an exciting and environmentally sustainable new protein source."
For more information view our new website at www.burcon.ca
About Burcon NutraScience
Burcon is a research and development company developing a portfolio of composition, application, and process patents around its plant protein extraction and purification technology. The goal of Burcon's research is to develop its patented process to utilize inexpensive oilseed meals for the production of purified plant proteins that exhibit valuable nutritional, functional or nutraceutical profiles. Burcon, in conjunction with Archer Daniels Midland, is currently focusing its efforts on developing the world's first commercial canola proteins, Puratein(R) and Supertein(TM). Canola, recognized for its nutritional qualities, is the second-largest oilseed crop in the world after soybeans. Burcon's goal is to develop Puratein(R) and Supertein(TM) to participate with soy, dairy, and egg proteins in the expanding multi-billion-dollar protein ingredient market, with potential uses in prepared foods, nutritional supplements, and personal care products.
ON BEHALF OF THE BOARD OF DIRECTORS
"Johann F. Tergesen"
Johann F. Tergesen
President & Chief Operating Officer
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of the content of the information contained herein. This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our products ,statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact. Our expectations regarding the prospect for future success depend upon our ability to develop and sell products, which we do not produce today and cannot be sold without further research and development. When used in this press release, the words "goal,""intend," "believes" and "potential" and similar expressions,,generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties. In light of the many risks and uncertainties surrounding the development of a source of protein from canola meal, you should understand that we cannot assure you that the forward looking statements contained in this press release will be realized.