BASF broadens biotech business by Isobionics acquisition

The acquisition of Isobionics BV (Geleen, The Netherlands) gives the the German world chemistry leader a foothold in the growing US$20.75bn market for flavours and fragances. Isobionics’ fermentation platform utilises bacterially expressed enzymes to produce aromas such as valencene (orange flavour), nootkatone (grapefruit flavour), and other synthetic natural flavours in a fermentation vessel. Furthermore Isobionics holds a patent on the only double pathway isoprenoid-producing strain in the world, which allows production of fragances independently from plant material. In May 2014, Isobionics and DSM Nutritional Products entered into an exclusive global partnership for the distribution of valencene and nootkatone ingredients.

Furthermore BASF SE announced a cooperation ageement with US-metabolic engineering and synthetic biology specialist Conagen Inc (Bedford, MA), a developer of innovative production strains for the production i.e. of natural vanilin, one of the aroma ingredients with the highest market demand. BASF currently sources the raw materials for natural vanillin from a rice compound. Producing natural vanillin by fermentation promises a cost advantage and improved environmental footprint.

Currently BASF SE is a leading supplier of synthetic aroma ingredients. With both transactions, the company now broadens its portfolio of marketed natural ingredients such as vanillin, nootkatone and valencene. BASF intends to advance the technology for biotech-based aroma ingredients by combining its own R&D excellence and broad market access with the know-how and expertise of Isobionics and Conagen. The companies did not publish any financial details of the transactions.

“Reflecting the potential of changing consumer habits and the scarcity of natural ingredients, the strengthening of our biotechnology footprint is at the heart of BASF’s strategy,” explained Melanie Maas-Brunner, Head of BASF’s Nutrition & Health division. According to Julia Raquet, Head of BASF’s Aroma Ingredients business, the Flavor & Fragrance industry is experiencing an increasing need for natural ingredients. “But fluctuating product quality, availability and sustainability are constant challenges for our customers. By entering the market with biotechnology-based aroma ingredients, we intend to provide our customers with high-quality products to respond to the current market challenges.”

According to market study the flavours& fragances market will annually grow by 4.75% by 2024.

BASF’s Nutrition & Health division recently established a global business unit dedicated to the research and production of enzymes, which can be used as natural processing aids or ingredients for a large variety of applications in food, feed and technical industries.