This is a good sign, isn't it??Wall Street Journal Aug 9th,2010
AUGUST 9, 2010, 12:32 P.M. ET
BioExx To Tap $16B Market With New Canola Protein >BXI.T
No truer words had been spoken: ". "Probably the larger concern is being able to make enough to satisfy demand," Schnarr said.
TORONTO (Dow Jones)--BioExx Specialty Proteins Ltd. (BXI.T) said Monday it has successfully produced the first commercially viable canola protein, giving it access to the US$16 billion protein-replacement market.
BioExx has achieved 95% purity for Isolexx, a canola-based product that offers an easily digestible, estrogen-free replacement for soy and whey proteins. BioExx is a Toronto-based company with a production facility in Saskatoon, Sask.
"It's something we worked very hard at for a very long time. It's also something a lot of people have tried to do and failed," Chief Financial Officer Chris Schnarr told Dow Jones.
Isolexx is a "potentially game-changing technology," said one analyst, because its profit margins are 10 times better than those generated from the sale of canola oil or canola meal.
The company will begin shipping canola protein bound for U.S. consumers in the next few months, as soon as the company receives proper permits for its Saskatoon plant. Isolexx has already received regulatory approval to sell the protein to consumers in the United States, but not in Canada or Europe.
The company will ramp up annual production to 7,500 metric tons in the next nine months, according to Schnarr. It will also begin building a facility in North Dakota, twice the size of its Saskatoon plant, in the fourth quarter of this year, he said.
BioExx already has an agreement with Hamburg-based chemical and nutritional supplement distributor Helm AG (HLM.YY) to sell 70% of the protein it produces. "Probably the larger concern is being able to make enough to satisfy demand," Schnarr said.
BioExx's revenues will "vastly increase" by the end of 2011, Schnarr said. The company doesn't provide guidance, but according to the Thomson Reuters mean estimate revenue is expected to grow to C$54 million in 2011, from an estimated C$12.1 million this year. The company is also expected to swing to a profit of 5 Canadian cents a share from a loss of 7 Canadian cents a share.
LOL....