zuChem Advances Product Portfolio through BRDC Award of $900,000
Posted on October 1st, 2003

zuChem, Inc., an innovative supplier of specialized sugars for the food and pharmaceutical industry, announced that they have received a research grant from the Biotechnology Research and Development Organization (BRDC) in Peoria, Illinois. The grant will provide zuChem with $600,000 in research funding over three years to commercialize a fermentation approach to manufacture xylitol. The BRDC also provided an additional $300,000 for the USDA National Center for Agricultural Utilization Research (National Ag Lab) to support a scientific collaboration with zuChem on the xylitol project. Under the agreement, zuChem will hold exclusive commercialization rights to technology developed as a result of the program.

Xylitol, a sweetener most commonly used in toothpaste, gum and diabetic candy, is faced with increasing demand, but growth has been slow because raw materials needed to manufacture the substitute sweetener are limited and expensive. By using a proprietary biocatalysis technology, zuChem will be able to manufacture xylitol more cost-effectively and expand the market through the use of alternative raw materials.

"The xylitol market is poised to expand dramatically if it could be produced inexpensively from readily available raw materials," said David Demirjian, president of zuChem. "The BRDC grant is helping us develop and commercialize a novel approach to manufacture xylitol that solves these problems."

ZuChem received Series A financing through The Technology Development Bridge (TDB) fund, an innovative public-private partnership developed by the Illinois Coalition and funded by the Illinois Development Finance Authority and ARCH Development Partners.