Freedom Foods Group (ASX:FNP) has entered into long-term supply agreement with a major global pharmaceutical company for Lactoferrin.
Lactoferrin is a naturally occurring iron-binding protein found in milk. It’s known for its anti-microbial, anti-inflammatory and immunological properties. As a high value key ingredient, Lactoferrin is used globally in a range of health and nutritional food products that are used in medicinal products and infant formula.
The supply agreement will use a significant amount of its current and planned capacity for Lactoferrin at the Freedom Food’s ingredients facility in Shepparton, Victoria.
The Company’s nutritional ingredients capability has seen strong demand and received commitments to sell all of its available capacity in FY2020 for native whey protein isolate, micellar casein and Lactoferrin.
Its recent $130 million capital raise will predominantly be used to boost its growth strategy in Nutritional ingredients through calendar 2019 and 2020.
Shares in Freedom Foods Group (ASX:FNP) are trading 2.1 per cent higher at $5.45.