Artemis international: recipient of USDA grants for extraction technology research. (Industry Spotlight).

It is no secret that undertaking research, especially in nutraceuticals industry, is a monumental task. Research requires time, resources and most important, money, which are luxuries that most nutraceuticals companies do not have. One company that has worked around these difficulties to make the research happen is Artemis International, Fort Wayne, IN.

Artemis recently received two grants including a Cooperative Research And Development Agreement (CRADA) grant and a Small Business Innovation Research (SBIR) grant. Both were applied for And granted through the United States Department of Agriculture (USDA). Describing the grants in more detail was Jan Mills, president, Artemis. "The CRADA is grant in which the USDA and a commercial company work together to jointly develop some type of technology," she said. In Artemis' case, both parties set out to evaluate the usefulness of subcritical fluid technology for the extraction and concentration of phytochemicals and other components from fruits and vegetables. Also imbedded in that agreement was the SBIR grant, which Ms. Mills said, was specifically designated to examine subcritical water extraction.

SBIR is an actual grant that is executed in two phases. The first phase sets out to prove feasibility and proof of concept. "The SBIR grant was a phase one award for six months and was worth approximately $62,000," Ms. Mills explained. "If we meet all of the criteria that the government has set forth for a second phase, then we can apply for a second phase, which would entail a significantly larger amount of money. When you get into phase two then you are looking to scale up and determine whether or not it is economical to manufacture by way of this method on a commercial scale."

The SBIR and the CRADA are completely different programs with different applications for features and criteria. The SBIR grant is an outright grant, while the CRADA is a cooperative agreement Ms. Mills explained, "The CRADA requires a significant contribution of money and resources on the part of both parties--the U.S. government and the commercial company."

The Process of Application

According to Ms. Mills, this is the first time USDA has undertaken research in the area that Artemis has carved out. The process of applying for the grant(s) can be long and arduous but it doesn't have to be. "It is essential to develop a good relationship with the key researcher because they will smooth through a lot of what it takes to get the application processed and approved and to work through the operations of the government. They know the system better than you do," she offered. From the initial point of contact with USDA to gathering all of the paperwork, the whole process took about six months, which according to Ms. Mills is extremely fast.

In terms of advice for other companies considering applying for research grants, Ms. Mills said, "I think companies have to realize that they are working with the government and the government has its own beat that it dances to." She continued. "Most important, do preliminary work on your idea and apply it, apply it, apply it. There is a fallacy that you just get this money but much of the work has already been completed before you know whether or not you have received the grant(s)."

State of Research for Nutraceuticals

The state of research for dietary supplements and functional foods is not where it should be, according to Ms. Mills, "I think most would agree that our industry does not do enough research and that the costs are prohibitive. We are also tired of seeing silly studies--which is hard to define--and on the flipside the reality is that none of us can afford to do what a scientist would consider appropriate studies but that are probably not appropriate for the market," she said. "We have not found that happy medium of what we truly need against what we can truly afford and what we can truly communicate. It does us absolutely no good to spend a lot of money on research that we cannot communicate."

For the future, Ms. Mills said, the high cost to do quality research will force the industry to collaborate more, whether it is with the government, universities or each other. Ms. Mills proposed an idea for future research in the industry. She said, "One of the things that Artemis along with other companies and industry leaders are working toward is setting up a center for excellence for human nutrition, which will be controlled under commercial guidance, as opposed to government or university guidance, and will be supported by government, public and private funds. This is a very exciting project that will serve as a mechanism by which one can do collaborations and by which one can leverage multiple sources of funding to apply toward a research project.