USA - Alltech Inc-Global Animal Health Company Announces Acquisition

Alltech, the global producer of natural animal feed supplements, has just announced the purchase of Optigen 1200, a time release technology used in the agricultural feed industry to enhance food animal production. Optigen 1200 was purchased from Agway's CPG Nutrients division in Kittanning, Pennsylvania. The technologically advanced polymer coating that allows for controlled release of encapsulated feedstuffs, such as urea, permits dairy producers to replace current dietary products, such as soya protein, which is presently in short supply. In vitro studies with Optigen 1200 have demonstrated the ability of the polymer coating to release nitrogen to rumen bacteria at relatively the same rate as soybean meal. Because Optigen 1200 is a concentrated nutrient source, dairy producers will gain space in animal rations when substituting Optigen for other protein feeds, allowing them to add other ingredients, such as forage or by-products, which can enhance rumen health, animal well-being and lower dietary costs. More properly balanced diets with Optigen 1200 promote better fibrolytic bacteria, more microbial protein production, decreased need for imported protein, and better environmental stewardship from less wasted nitrogen. Documented results in commercial animal diets include increases in milk yield and milk components. The acquisition of the intellectual property and the equipment at the facility reflects Alltech's policy of actively acquiring proprietary patented technologies. There are numerous patents protecting the Optigen technology, with FDA approval possible by the end of the year. "We are seeing an increase in demand for protected products not only in the US, but particularly from our overseas customers. The acquisition of Optigen, presents a great opportunity for us to further enhance our natural product range," said Dr. Pearse Lyons, president of Alltech. He added, "We believe there are tremendous opportunities for the application of this timed release technology to our 'Big Six' products, which include Bio-Mos, Bioplex minerals, Sel-Plex, and Yea-Sacc1026. " Since its inception, Alltech has invested heavily in research and development. Through cooperative relationships with universities and the company's own three bioscience centers, each Alltech product is repeatedly tested in laboratory and field trials. The pilot plant currently housed in the Pennsylvania facility will be moved to Lexington company headquarters, to be integrated in this state-of-the-art facility, while full-scale production will be undertaken at the company's Springfield, Kentucky manufacturing plant. Alltech has an annual capacity of over 30,000 tonnes between this plant and their production facilities in Alexandria, Canada. Additionally the company's Lexington, Kentucky headquarters is undergoing an expansion at cover a total area of 60,000ft2. Joining the Alltech team in a consultative capacity are Dr. Corwin Holtz and Dr. Judy Gowner who will work with Alltech scientists on attaining FDA clearance for the product. When making this early announcement to Feedstuffs, an Alltech spokesperson indicated that the technology will be officially launched at Alltech's 20th International Feed Industry Symposium, to be held in Lexington May 23-26. This conference is attended annually by over one thousand feed industry professionals from around the globe.