Friday, 8 April 2011

Neptune Dancing With The Bayer Giant

Neptune Technologies & Bioressources (NTB - TSX V) (NEPT - NASDAQ)
Basic Shares: 42.0 million
Fully diluted: 45.48 million

It's finally official. One of the world's Big Pharma giants - Bayer - formally launched its omega-3 product called Arctic Wonder that uses Neptune Krill Oil.

Bayer, the 148-year-old, German-based behemoth that boasted group sales of $35 billion euros last year, will start running television and Internet ads in the United States under the One A Day logo the world giant made famous mainly for its vitamin products.

Bayer, the makers of Aspirin and a host of other drugs, has the exclusive rights to market Arctic Wonder on the Internet or e-commerce in the United States.

As the relationship grows, that could change. But Neptune is not sitting idle for it's constantly working on other deals on this and other continents to gain wider distribution for its krill oil with other corporations in other channels of trade - such as stores.

No details on the expected sales of Bayer's product were released. However, Neptune President and CEO, Henri Harland, noted in the Neptune news release that the omega-3 market stands at about $1.7 billion now and is estimated to reach $3.5 billion in just four years.

Having the Bayer name attached to its product should prove to be a major boost for Neptune in its ongoing work to capture more and more of that booming market.

And being able to walk into other negotiations while noting Bayer chose Neptune Krill Oil over all the competitors out there, is a cudo any executive would love to have in his or her back pocket. To see the Bayer Internet ad about Arctic Wonder, please click here. The launch also allows Neptune to tick off another milestone in its history and brings into sharper focus the other publicized milestones it hopes to achieve this year with other huge corporations, such as Nestle and Yoplait.