The announcement came as the company announced its interim results last Friday – covering the six months to September 30 2011 – which also carried news of alliance partner DSM’s progress in further commercialising tomato-based functional food ingredient Fruitflow.
The ‘platelet smoothing’ effects of tomato extract Fruitflow – which can be used in beverages, food or dietary supplements – are subject to an approved article 13.5 health claim from the European Food Safety Authority (EFSA), which states “helps maintain normal platelet aggregation, which contributes to healthy blood flow” at an agreed optimum dose of 3g.
Fruitflow was officially launched in its first DSM incarnation as a syrup at HIE Madrid 2010.
Speaking to BeverageDaily.com, Provexis CEO Stephen Moon said: “We are moving our focus to the two revenue streams of Fruitflow and [recent UK sports nutrition acquisition Science in Sport] SiS, which means we have cut back our pipeline.”
Discussions with global brands
Discussing progress concerning the commercialisation of Fruitflow, Moon said: “DSM has been striking deals with regional consumer brand owners during the year, with several now on the market and some about to come to market. We also expect further launches in the first half of 2012.”
But Provexis chair Dawson Buck said in the results announcement: “Promising commercial discussions continue with multinational and global brand owners, and we are advanced in developing and refining a powder version of the technology, which is key to progressing these discussions through to deals.
Quizzed further as to why he thought an optimised powder concentrate version of Fruitflow was so important for the ingredient’s success – DSM and Provexis have developed a powder concentrate for tablet and capsule use – Moon said:
“Brand owners in the dietary supplement area have shown strong interest in Fruitflow and for these applications a concentrated powder format would be applicable. Also in some other formats such as small shots, while the syrup format can be used, the powder concentrate may be easier to work with.
The EU-approved claim for allows associated product packaging to state, “helps maintain normal platelet aggregation, which contributes to healthy blood flow” at an agreed optimum dose of 3g.
Liverpool lab shut
Despite the closure of its Liverpool R&D lab to reduce “underlying cash burn” by £950,000, Moon said research would still be integral to Provexis’ business model, as it developed Fruitflow with partner DSM and introduced “leading-edge” science to recent acquisition Science in Sport (SIS).
He added: “Our scientific team have already developed prototype product which has produced measurable performance gains in a small trial with a leading Olympic team.”
Provexis would retain a scientific team at the University of Aberdeen, Moon said, as well as a product innovation team within SiS. “S o we believe our engine for science is very much in place and will be key to growth,” he added.
On a turnover of £1.53m (€1.78m) Provexis also posted an operating loss of £1.03m or €1.2m (against a £1.13m or €1.32m loss in 2010) for the six month period; as part of the restructure COO Steve Morrison will also leave the firm.
Asked why Provexis had posted such a large operating loss, Moon said: “Underlying losses have in fact reduced significantly. The half-year loss included exception costs related to the restructuring and SiS (Science in Sport) acquisition.
He added: “Going forward, we have reduced non-core expenditure significantly, offering further enhancements in the second-half of the year.”
Due to the focus on Fruitflow and new acquisition Science in Sport (SIS), the company also announced that it was winding-down research on plantain extract NSP#3G and review its cardiovascular inflammation projects, but would retain intellectual property (IP) interests.