Navamedic ASA has today signed a letter of intent (LOI) with Lytone Enterprise Inc. in Taiwan for the sale of the first year’s production from the company’s planned new chitin factory at Senjahopen in Troms. The LOI has a value of approximately NOK 7 million.
The LOI between Navamedic’s 100% owned subsidiary ChitiNor AS and Lytone Enterprise, Inc. in Taiwan covers the chitin production for one year from the start-up of the chitin factory.
Navamedic in January announced a long-term agreement with the leading Norwegian seafood company Nergård Group and the establishment of a chitin production facility adjacent to the Nergård Group’s shrimp peeling plant in Senjahopen.
Chitin is the starting material for production of glucosamine, the active pharmaceutical ingredient in Navamedic’s Glucomed product for osteoarthritis symptom treatment. Glucomed was recently approved for medicinal use in 20 European countries. Navamedic is currently building a network of marketing and distribution partners to prepare for a launch across Europe.
– We aim to become a leading player in the glucosamine market, and believe we need to be vertically integrated to build long-term cost advantages. Until we have our own glucosamine production up and running, we aim to sell our chitin production to third parties. The letter of intent with Lytone is commercially valuable to Navamedic and confirms the positive development of the chitin and glucosamine markets, says CEO Øyvind Brekke in Navamedic.