Monday, 12 September 2011

Catalyst Provides Clarity on Bayer’s ‘Arctic Wonder’ and Neptune

Neptune Technologies & Bioressources
Basic Shares: 48.2 million
Fully diluted: 53.9 million

Today Catalyst Equity Research published an update on Neptune Technologies. In the update Robin Cornwell provides shareholders with an explanation as to why Bayer’s ‘Arctic Wonder’ is listed as Temporarily Unavailable on its website.

Reason given: “Bayer Wants to Make ‘Arctic Wonder' Even Better.”

  • Our understanding is clearly that the temporary shutdown has nothing to do with backorder problems or any negative aspects of Neptune Krill Oil “NKO™”.
  • Arctic Wonder has had very positive consumer response – so much so that Bayer & Neptune are in the process of reviewing the composition and the format of the product in order to optimize the potency of NKO™’s exceptional antioxidant content and push the quality standards to higher levels.
  • The objective of the reformulation is to capitalize on the multitude of advantages of NKO™ including extended shelf-life
  • We believe that the supply interruption of Arctic Wonder to the consumer market should be perceived as very positive as it demonstrates the exceptional collaboration between the two companies to produce higher levels of efficacy for NKO™ in a softgel format.
  • Furthermore we continue to expect new products from the Neptune/Bayer relationship over the near future.

In addition, in the report Catalyst maintains its one year share price target of $7.00.

To view the full report, please click here.