Re: GRAS as I understand it -- Two comments
posted on
Oct 28, 2006 06:16AM
Geoff,
I have two comments on your thinking:
1) Your explanation is certainly very plausible. I will be very interested in seeing the FDA's "List of the substances that are the subject of each GRAS Notice and the file number that FDA has assigned to the notice (GRN No.)." when it is updated in November. If there is a listing for "Agrastim", or something indicating Agrastim®, then the scenerio you describe is not an accurate assessment of the process that occurred. We don't have long to wait.
2) If, in fact, GRAS designation was part of what has held up the announcement of sales, and that designation was achieved in mid to late October I doubt that there would be much in the 10-Q for the first fiscal quarter ending September 30. I would be looking for a public announcement by a major company or two, rather than looking in the Q that ended before the GRAS listing.
There is also another, more important (IMO) designation that I am looking for that I have not yet seen. "ORGANIC" designation is a bit more closely regulated by the FDA, and has far more commercial value than GRAS, for the marketing to the general public. Many consumers will pay a premium for chicken that is "certified organic", but have no clue what GRAS means. I believe that GRAS status is the first but necessary step to Organic designation. Assuming all other aspects of the process of raising the food animals is compliant with "Organically raised" practices, the addition of AGRASTIM, if it recieves Organic designation, would allow producers to reap the benefits of advertising their product as "organic", while experiencing higher profitability.
NOW, here is a little bit of editorializing...
Agrastim® significantly reduces mortality
Agrastim® increases food conversion and therefore slaughter weight
Agrastim® is less expensive than anti-biotics
Agrastim® is safe (GRAS)
I believe the poultry industry will quickly come to realize that every day that goes by that they are not feeding Agrastim®, it is costing them money. If Agrastim® receives Organic status, I believe it will take the Organic poultry industry by storm.
Industry is slow to change, but when it does, it rarely turns back.
-z