:. Food Industry News

Categories: Food Ingredients News

Tate & Lyle Shares Fall Sharply Further to USITC Ruling on Sucralose; Generic Producers Welcome Decision

Source: FLEXNEWS
24/09/2008

24 September 2008 - Tate & Lyle has said it will appeal a USITC ruling against the firm concerning a patent-infringement case on sucralose, the generic version of the sweetener Splenda.

Daily News Alerts

Further to the news, Tate & Lyle’s shares yesterday closed down 46½p or 11 per cent at 369½p.

According to company investor information, sucralose accounted for about 20% of Tate & Lyle's adjusted operating profit in the year ended 31 March 2008. The sweetener generated GBP 148 million of sales for Tate & Lyle and an operating profit of 66 million during that same period.

Robert Gibber, General Counsel of Tate & Lyle, said: “This is a complex case involving a huge amount of in-depth technical analysis and debate between scientific experts. We would not have proceeded with an ITC case unless we believed we had adequate evidence to demonstrate that our patents are being infringed. We intend to petition for an appeal of the decision by the full Commission.”

Karl Kramer, President, Tate & Lyle Sucralose added: “Intellectual property is just one of a number of different layers of protection which define Tate & Lyle’s formidable competitive advantage in the global sucralose business … Our business is built upon long-standing relationships with some of the world’s leading food, beverage and pharmaceutical manufacturers, as well as the established SPLENDA® brand which is renowned as a high quality, reliable and trusted product in a number of markets.”

Generic sucralose manufacturers have welcomed the USITC decision.

Leading sucralose producer, Niutang of China, reacted by saying that during the ITC discovery process, which included a rigorous inspection of Niutang’s manufacturing facility and a 2-week hearing before the Administrative Law Judge in February, Niutang “decisively demonstrated that the process it has developed to manufacture sucralose does not violate any of the three patents in question. A fourth patent was voluntarily dismissed by Tate & Lyle before the hearing began”.

"We are very pleased that Judge Bullock has affirmed what we have said from the outset: that Niutang does not infringe any of the patents asserted by Tate & Lyle in this proceeding,” said Licheng Wang Jr., General Manager of Changzhou Niutang.

“We have always respected the intellectual property rights of other companies, and we have made significant investments in our own research, development and manufacturing processes. In fact, we have significantly expanded our capacity to produce sucralose to meet the rising demands of our customers.”

US producer, Heartland Sweeteners LLC, meanwhile, said that it was pleased with the decision, affirming its right to manufacture and market its products and compete fairly with Splenda.

Ted Gelov, Heartland's CEO, commented: "Heartland will continue to defend its ability to offer alternatives to consumers and will continue to oppose the efforts of Tate & Lyle to remove those alternatives from the market".

A binding final determination by the full six-person Commission is expected by January 2009. However, Niutang and Heartland Sweeteners both said that they are confident the entire Commission will confirm Judge Bullock’s ruling.

This latest USITC ruling could mean that more manufacturers may enter the sucralose market in competition with Tate & Lyle, said an Investec Securities analyst.

Numis analysts, however, said that the ruling could lead to overcapacity in the sucralose market as new entrants join.



GO   View more articles on this subject


More Alerts from 24/09/2008


Email This Article To A Colleague     Print A Copy Of This Page
 
 
 
 
FLEXNEWS - Business News for the Food Industry

About Us | Contact Us | Terms & Conditions | Privacy Policy
 
Daily News Alerts
Related Items
Tate & Lyle Welcomes ITC's Review of Sucralose...
First China-Based Sucralose Manufacturer Confirms United...
New Sucralose Process from Lexington Pharmaceutical...
U.S. International Trade Commission Extends Target...
Tate & Lyle Response to Speculative Comments by...
ITC Investigative Staff's Pre-Hearing Brief Concludes...
US District Court Rules Against the Sugar Association's...
Sucralose Investigation: ITC Not to Review Initial...
JK Sucralose Inc. Wants to Join ITC Investigation to...
Tate & Lyle ITC Complaint without Merit, Says US...

More in Food Industry News
US Coffee Roasters Try Growing the Beans They Sell
Mexico's Comerci to Offer Debt Restructuring Plan
Brazil, Thailand Challenge U.S. Import Measures
Russia's Wimm-Bill-Dann in Talks over $180 Mln Bank...
EU-Australia Wine Trade Agreement Signed
Ireland: Carbery Launches Legal Action Against Carbon...
Dow Introduces New Plant-based Technology Enabling...
China to Open Anti-trust Probe into Coca-Cola's Bid...
Panrico Among Finalists for SOS Biscuits Arm
China Raises Death Estimate from Tainted Milk to Six

Top Headlines
Brazil, Thailand Challenge U.S. Import Measures
Russia's Wimm-Bill-Dann in Talks over $180 Mln Bank...
EU-Australia Wine Trade Agreement Signed
Vietnam Aims to Avoid Coffee Expansion in 2009
Carrefour Plans More French "Carrefour" Brand...
Ireland: Carbery Launches Legal Action Against Carbon...
Dow Introduces New Plant-based Technology Enabling...
China to Open Anti-trust Probe into Coca-Cola's Bid...
Panrico Among Finalists for SOS Biscuits Arm
China Raises Death Estimate from Tainted Milk to Six
Mondavi-inspired Wine Center Files for Bankruptcy
Kohlberg Kravis Roberts to Invest $100 Million in Chinese...
Unilever Reshapes its Global Research & Development
SIA Unit to Buy Singapore Food for S$478 Million
UK: Real Good Food Warns on Profit Again
Tesco Preparing for Tougher Times Ahead
Brown-Forman to Divest Italian Wines
DeMet's Candy Company Acquires the Treasures and Stixx...
Canada Greens File Complaint on Nestle Water Ads
Saputo Completes the Acquisition of the Activities...
Solae Announces Global Price Increase for Soy Ingredients
Colruyt Issues Interim Financial Report; Revenues Rise...
UK: Bidders Circle Troubled Woolworths
Ardo Confirms Take-Over of Austria Frost
Carrefour Still Planning Indian Joint Ventures
Improved Infant Formula, Aroma Composition for Use...
Co-Precipitated Carrageenan/Xanthan Gum Compositions...


 


FLEXNEWS 2008 - All rights reserved
ISSN 1950-6228