BioProspect consolidates deal with Solagran

Natural compound biotech, BioProspect (ASX:BPO), has agreed to advance a deal with partner Solargran (ASX:SLA) to commercialise animal health and nutrition products.

The arrangement comes as a part of a development agreement between BioProspect, Solagran and Nova Vita from 2007 which allowed the former to conduct market and product evaluation for BioProspect's Bioeffectives products.

Bioeffectives are natural compounds extracted from the needles of various coniferous tree species like Scotch Pine (Pinus silvestris) and Norwegian Spruce (Picea abies). They have anti-bacterial, anti-viral and anti-oxidant properties based on the activity of chemical components like polyprenols, phytosterols, carotenoids and labdanic compounds.

BioProspect entered a trading halt on Tuesday 23 February 2010 to provide time for BioProspect and Solagran to confirm arrangements going forward. These arrangements were agreed on Wednesday 24 February, paving the way for full commercialisation of Bioeffectives to proceed.

As a part of the commercialisation process, BioProspect and Solagran may splinter off a dedicated special purpose company to commercialise the products.