The US firm has just received its first commercial shipment of the sweetener, called Naturlose (tagatose), from its Danish licensee Arla Foods Ingredients, after settling a dispute. Arla has exclusive rights to sell another version of the product, under the Gaio-Tagatose brand name, to companies in the food and beverage markets.
Biospherix was able to press ahead with the marketing of Naturlose only after settling a drawn-out dispute with Arla Foods, in which it alleged that the Danish firm was dragging its heels in bringing tagatose to market.
The dispute was settled by arbitration last month, freeing up Biospherix to offer the product to customers in the non-food sectors. Until then, a question mark had been hanging over the firm's ability to actually supply the sweetener.
A supply agreement is to be worked out by 31 March, 2004 concerning the first two years' supply of at least 50 metric tonnes of tagatose per year.
Arla had sought protection against its fear that Spherix might manufacture tagatose for use in food products, and the Danish company wanted written assurance as part of the settlement. In return, Arla has undertaken to resume supply, doing away with the necessity for Spherix to build or contract a plant, either of which routes would have taken 18 to 24 months to complete.
The initial order of one tonne of tagatose has enabled Spherix to start detailing the product to drug, toothpaste, mouthwash and cosmetics manufacturers. The firm said it will start a sales and marketing campaign for Naturlose very soon.
Thomas Gantt, Spherix's president and CEO, said: "In addition to earnings from our royalties with Arla, BioSpherix has now added a second potentially valuable revenue stream that can only increase revenues and profits."
Naturlose was determined to be Generally Recognised As Safe by the US Food and Drug Administration (FDA) in 2000 for use in medicines as an excipient and for products such as antibiotics, cough syrups, liquid medications, toothpastes, and mouthwashes.