Scotland-based Equateq lands £12.3m US contract to lead the fight against heart disease
05 July 2011
A Scottish pharmaceutical production company is set to expand after winning its biggest-ever order, from a US firm with ambitious plans in the cardiovascular health sector.
Lewis-based Equateq will supply Amarin Corporation with large quantities of an active pharmaceutical ingredient (API) for use in AMR101 – an omega oil pharmaceutical under development to combat cardiovascular disease.
The deal means Equateq – a world leader in the production and supply of omega oils – will expand to meet the demand from its new client.
The firm plans a “significant investment” in new equipment and capacity, while the current workforce of 35 is likely to double during the eight-year contract, which will run to 2019.
Under the terms of the contract, US-headquartered biopharmaceutical company Amarin Corporation plc is bound to a minimum purchase agreement that will see it buy £6.1m worth of the product from Equateq in year one, rising to £12.3m in year four. The terms for the final four years of the agreement will then be renegotiated based on demand.
Equateq CEO Adam Kelliher, who moved into the Isle of Lewis facility and formed the company five years ago, said:
“This is our most significant agreement to date, and one of the most significant in the omega oil sector. We look forward to applying our Maxomega technology to deliver bulk API concentrate to Amarin.
“Amarin's research indicates that AMR101 has the potential to help many who are suffering from cardiovascular disease. The opportunity presented by Amarin is potentially immense, and we aim to ensure they have supply chain security to meet the anticipated demand, which is significant.”
Sandy Dobbie, chairman of Chemical Sciences Scotland, said:
“This is fantastic news and we are delighted for Equateq, who have worked extremely hard to make it through a very rigorous selection process and secure this work.
“One of the ways in which Scotland can compete and flourish on the world stage is through international trade, but winning large contracts such as this is not easy when you are competing with similar companies all over the world.
“That is what makes Equateq’s achievement all the more remarkable, and by expanding their facilities and workforce the company will create new skilled jobs in Scotland. The potential rewards are enormous and we will be watching developments with interest.”
Archie MacDonald, HIE area manager for Innse Gall, said:
"Highlands and Islands Enterprise has been working closely with the Lewis based Equateq team to develop their business model over the past five years. We are delighted to have been able to support the company's research and development projects as it worked towards just this kind of opportunity.
“The Highlands and Islands of Scotland are increasingly leading innovation in the life sciences markets and we are delighted that an ambitious business like Equateq has secured this deal in the global market."
Amarin conducted a lengthy evaluation of companies worldwide which have expertise in manufacturing fatty acid-based products, concluding that the majority of companies lack the technical skills and product quality needed to consistently produce icosapent ethyl for AMR101 that is greater than 96 per cent pure eicosapentaenoic acid (EPA).
Amarin's evaluation concluded that Equateq was one of three companies to possess the technical competence, quality capabilities and regulatory experience needed to supply the product to Amarin's high quality standards.
Equateq’s expansion plans will create sufficient capacity to produce metric tonnes of API, with each metric tonne being enough to make around a million one gram capsules of AMR101.
More information on Equateq