Israeli business venture Isracaps today announced that it signed a licence agreement with UK based Stanelco Plc., (LSE: SEO) for the manufacture and distribution in Israel of starch based capsules for drug, vitamin and food additives.
Isracaps, managed by businessmen Ben White and Yaron Bernholz, was founded specifically for the purpose of winning this licence from Stanelco.
With the deal now signed, Isracaps is currently involved in talks with pharmaceutical companies and institutional financial investors, with a view to raising funds and signing a strategic cooperation agreement. It is also in the process of setting up manufacturing facilities in Israel and recruiting initial staff.
Once operational, the company will focus on the manufacture and marketing of starch capsules.
According to Isracaps, Stanelco’s new, internationally patented manufacturing process enables the manufacture of starch capsules in which drugs, vitamins, food additives and other substances can be preserved in liquid form.
The current solution for encapsulation is manufactured in a gelatine format, which limits types of substances that can be encapsulated and adds up to 40% in costs, Isracaps says. Current solutions are limited in their ability to control the amount of time it takes for capsule contents to be absorbed into the bloodstream.
The agreement allows Isracaps to manufacture capsules for encapsulation of prescription and non-prescription drugs, vitamins, food additives, cosmetics and other substances. Isracaps says that the deal firmly positions it as the sole player in Israel with the capacity to manufacture starch based capsules using Stanelco’s patented technology.
Isracaps CEO and co-founder Yaron Berenholtz said, “This is one of the most exciting events to take place in the drug, vitamin and food additives markets in recent years. Presently, less than half the range of available drugs can be packaged in gelatine capsules due to the interaction with the gelatine. The introduction of capsules made from starch, derived from plant sources, using a new manufacturing technology, will open up the drug capsules market and drastically reduce costs.”
“We are very excited about the agreement with Isracaps” said Barrie Hozier, finance director at Stanelco. “We expect that starch capsules will displace most of the existing gelatine capsules from the capsule market to become the new standard in capsules. We estimate that the combined segment value totals over a billion dollars, with the pharmaceutical segment representing a significant share of this market.”
Founded in 1953, Stanelco is traded on the London Stock Exchange and focuses on the design and manufacture of fibre furnace technology, induction heating and dielectric welding equipment. The company’s core business is the manufacture of optic fibres using RF sealing technology.
Published by Globes [online] - www.globes.co.il - on 23 October, 2003