Xenofocus Signs Long-Term Lactase Supply Contract with French Company D Worth 40 Billion KRW

Customized enzyme specialist Genofocus has secured a competitive edge in the global lactase enzyme market through a large-scale supply contract for lactase (product name Lactazyme B) with D Company, the world's largest dairy products company based in France.

On the 14th, Genofocus announced that it had signed a lactase supply contract worth a total of 40 billion KRW (28.3 million euros) with D Company. The supply period extends until 2027.

Genofocus underwent D Company's rigorous quality inspections for three years starting in 2018 and was finally approved for supply-quality in 2021. Since then, deliveries have been continuously made.

A Genofocus representative stated, “This main contract was concluded because our long-term business relationship has proven excellent quality control and production capabilities,” adding, “With lactase as a foundation, we expect significant sales growth starting in 2024 by securing a long-term revenue source.”

They continued, “Based on this long-term supply contract with the world’s number one company, we are currently discussing additional supply agreements with other dairy companies in Europe, North America, and South America.”

Lactase is an essential enzyme in the manufacturing process of galacto-oligosaccharide (GOS), a premium prebiotic. Galacto-oligosaccharide is similar to human milk oligosaccharides (HMO) and has been shown to have excellent effects on the development of infants’ immune systems and cognitive abilities, prevention and treatment of allergies and atopic dermatitis, and suppression of pathogenic infections. It is used in premium infant formula worldwide and its consumption as a health functional food is also increasing. According to the global market research firm Fact.MR, the global galacto-oligosaccharide market size is expected to reach 2.24 billion USD (approximately 2.9695 trillion KRW) by 2032, with an annual growth rate of 9%.

Genofocus developed the second lactase enzyme for galacto-oligosaccharide production worldwide. In 2020, it also signed a lactase supply contract with S Company, a global dairy processing company based in the United Kingdom, and continues sales.