Tuesday, 17 December 2013

Technical Indicators Continue to Point Positively For Neptune

While technical analysis is no guarantee of what the future will bring for any stock, momentum is currently on the positive side for Neptune. The trend was further enhanced with this morning’s news that Neptune has settled its long fought patent Intellectual Property dispute with Aker BioMarine. As part of the settlement, Aker, the dominant krill oil supplier in North America, agreed to pay Neptune an ongoing royalty bearing licence fee.

According to the news release, “Royalty levels are dependent on the outcome of the pending inter parties review proceedings before the U.S. Patent and Trademark Office (USPTO) regarding Neptune’s ‘351 composition of matter patent (No. 8,278,351).”

Also, Aker has agreed to pay Neptune an additional non-refundable one-time payment for the manufacture and sale of krill products prior to the effective USPTO decision date. The financial terms of the license are confidential between the parties.

Of note, this settlement does not include Enzymotec, which is the last krill oil competitor.

The timing of today’s news certainly adds to the “spirit” of the season. Also, the market can now look forward to the expected resumption of NKO production by March with the new facility nearing completion following the devastating explosion in 2012.  

To view today’s news release, please click here.

Neptune Technologies and Bioressources 
Basic Shares: 60.0 million 
Fully Diluted: 67.5 million