By Ben Klayman
CHICAGO (Reuters) - Martek Biosciences Corp (MATK.O: Quote, Profile, Research, Stock Buzz) is aiming this year to boost the number of long-term supply deals it has with infant formula makers who use the company's Omega-3 fatty acid supplement, the company's president said on Tuesday.
Martek has long-term supply agreements running through at least 2011 with about 70 percent of its infant formula customers.
"I'm certainly hopeful we'd increase the percentage between now and the end of the year," David Abramson said at the Reuters Food Summit. He declined to provide a target.
Shares of Martek closed up $1.72, or nearly 6 percent, to $30.46 on the Nasdaq.
Almost all the infant formula sold in the United States includes Martek's product, life's DHA.
DHA, or docosahexaenoic acid, is seen as benefiting brain, eye and heart health. The current market for Omega-3 enriched products is $2 billion and is expected to hit $7 billion by 2011, Martek said, citing data from market research firm Packaged Facts.
Abramson also said Martek is constantly looking at expanding its product lineup by adding another nutritional ingredient, but it has not found anything that has the scientific backing and also makes economic sense.
"While there are several things that we're interested in at this point in time ... we are not going to do anything that we don't believe has solid science behind it," he said. Continued...
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