IFF to Promote Sweetness Enhancer – Analyst Blog

New York based International Flavors & Fragrances Inc. (IFF) received exclusive rights from Redpoint Bio Corporation for the commercialization of RP44, a natural sweetness enhancer. Redpoint Bio Corporation is primarily engaged in healthier foods and beverages development.

 

Redpoint Bio’s license and commercialization agreement requires International Flavors to develop, manufacture and commercialize RP44 for five years in all food and beverage product categories. Moreover, International Flavors will look after regulatory requirements and protection of Redpoint’s intellectual property covering RP44. Per the terms of the agreement, Redpoint Bio will receive an upfront payment of $0.5 million, milestone payments of up to $1.0 and royalties on the amount of RP44 used by International Flavors.

 

International Flavors & Fragrances Inc., together with its subsidiaries, engages in the creation and manufacturing of fragrance and flavor products in the United States and internationally. It operates in two segments: Flavors and Fragrances.

 

International Flavors’ success is driven by its huge geographical presence and product mix. The company’s accomplishments in research and intense consumer insight support its growth momentum. Besides, enhanced margin levels are expected in the coming year as the company follows a strategy to reduce operating costs.

 

However, the cyclical nature of the flavors and fragrances industry acts as a hindrance to the company’s growth. Moreover, the intense competition within the industry reduces both top-line and bottom-line results. Prime competitors of the company include Danisco A/S, Firmenich SA, and Givaudan SA.

 

 We currently maintain a Neutral recommendation on the stock, which is in line with the Zacks Rank of #3 (Hold).