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Nutraceuticals and functional foods represent a young and exciting industry with direct implications for human health.
With growing interest, especially in the United States, the development of nutraceuticals as a category clearly demonstrates the convergence of the food and pharmaceutical industries. Naturally nutrient-rich or medicinally active foods such as garlic and soybeans are receiving greater attention from consumers creating a new wave of demand for these commodity products.
The nutraceutical industry presents an interesting investment opportunity characterized by low regulatory barriers and high consumer demand. As pharmaceutical companies struggle against regulatory challenges and approval costs that impede new drug development, nutraceuticals offer a new paradigm in healthcare that focuses on wellness rather than illness. For companies with technologies focusing on key output traits, the nutraceutical industry provides a completely separate and booming market that can be readily accessed by agbio players.
Finistere Partners, with its expertise in agricultural biotechnology, is uniquely placed to help fund and grow nutraceutical and functional food ventures. Its founding partner AgResearch has expanded into nutraceuticals and will continue searching for new technologies that are suitable for commercialization.