Forbes Medi-Tech sells half-interest in Phyto-Source for $25 million

By Ted A. Knutson

Washington, Feb. 23 - Forbes Medi-Tech Inc. announced Thursday it has agreed to sell its half-interest in Phyto-Source LP, the firm's sterol manufacturing joint venture, for $25 million to Chusei Oil Co. Ltd., the Japanese parent company of Forbes' joint venture partner, Chusei (U.S.A.) Inc.

Simultaneously, Phyto-Source and Forbes Medi-Tech signed a supply agreement which will assure Forbes Medi-Tech of a supply of Reducol and other wood sterols for five years. Forbes has agreed to buy all of its sterol requirements exclusively from Phyto-Source for the first year.

As a result of the sale, Forbes said it is able to focus all of its marketing and sales efforts toward a value-added approach for the company's ingredient business.

"We believe that owning an interest in a sterol manufacturing facility is no longer critical to Forbes' business strategy of developing and marketing a continuum of products for the prevention and treatment of cardiovascular disease, from food and dietary supplement ingredients to pharmaceutical therapeutics," said Charles Butt, president and chief executive officer of Forbes, in a press release.

"Forbes' product focus in the lifestyle end of that continuum is on building our own proprietary, value-added, branded, and clinically tested food and dietary supplement ingredients, of which our lead product is Reducol."

Forbes Medi-Tech is a Vancouver, B.C.-based life sciences company dedicated to the research, development and commercialization of products for the prevention and treatment of cardiovascular disease.

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