Symphony Environmental surges as it receives FDA approval for antimicrobial food packaging
The company said the approval provided “a new and immediate commercial opportunity in the western world’s largest market”
Symphony Environmental Technologies PLC (LON:SYM) saw its shares nearly triple in value on Wednesday following news the firm has received approval for its d2p antimicrobial food packaging from the US Food and Drug Administration (FDA).
The environmentally friendly plastics specialist said the approval provided “a new and immediate commercial opportunity in the western world’s largest market” and that it expected to see “considerable interest” for the use of d2p in the baking industry, where it already derives significant revenues from sales of its biodegradable d2w plastic products.
“d2p is synergistic with d2w biodegradable technology and is expected to be sold to many of our current customers as well as new ones”, Symphony said in a statement.
Michael Laurier, the company’s chief executive, said the company was “now in a position to move forward commercially and to bring this unique product to our global markets”.
“We believe that this will make a significant contribution to revenues in the medium term”, he added.
In late morning trade, shares in Symphony Environmental were up 194% to 24.25p.
UK-headquartered biodegradable plastics specialist Symphony Environmental Technologies has secured food-contact approval from the US Food and Drugs Administration (FDA) for its designed to protect (d2p) antimicrobial technology, to be used in polyethylene film to wrap bread.
The d2p technology is synergistic with d2w biodegradable technology and is designed to prevent the growth of bacteria on the surface of packaging film.
Approval for the technology was given under the Food Contact Notification procedure and has no time limit.
According to a clause of the Federal Food Drug and Cosmetic Act, the approval can be implemented only for Symphony products and prohibits any similar or identical substance to be manufactured or prepared by a company or person.
The FDA approval is expected to draw new commercial opportunities for the company in the western markets.
Symphony CEO Michael Laurier said: “After nearly ten years of investment and development we are pleased to have finally obtained food-contact approval for this d2p product in the USA.
“We are now in a position to move forward commercially and to bring this unique product to our global markets. We believe that this will make a significant contribution to revenues in the medium term.”
The company expects to sell the film to current customers while also attracting new ones.
The group has generated substantial revenues from the baking industry for its d2w technology.
Symphony has developed a range of additives, concentrates and master-batches marketed under its d2p trademark.
Published on proactiveinvestors.co.uk
Published on packaging-gateway.com
Symphony Environmental is probably one of the global leaders in terms of developing plastic additives.