Mycofeast Acquires Daisy Lab to Scale Precision-Fermented Lactoferrin

UK fermentation company Mycofeast has acquired New Zealand biotech startup Daisy Lab. The deal gives Mycofeast access to precision-fermented bovine lactoferrin technology and a team to scale production, aiming to solve a supply shortage where the protein can cost between $600 and $2,000 per kilogram.

Mycofeast, established in 2023, has integrated the Auckland-based Daisy Lab and its founders into its global operations. Daisy Lab was founded in 2023 by Irina Miller, Nikki Freed, and Emily McIsaac. The acquisition provides Mycofeast with an Asia-Pacific presence, complementing its existing assets which include Evolutia Bio in California and a large European fermentation plant. The deal was not part of a formal sales process but evolved from Mycofeast's initial interest as a potential partner and customer.

Technology and product focus

Daisy Lab specializes in producing recombinant whey proteins via precision fermentation. Its most advanced program is for bovine lactoferrin, a high-value dairy protein. It has also produced human lactoferrin at lab scale. Traditional lactoferrin is scarce and expensive, but precision fermentation offers a path to cheaper, larger-scale production.

To advance its work, Daisy Lab installed a 500-litre fermenter in the first quarter of 2024 and is scaling up both fermentation and downstream processing. The company is part of a growing field of producers targeting this ingredient.

Integration and outlook

The three founders of Daisy Lab will take roles within Mycofeast. Irina Miller stated, "There are no layoffs associated with the acquisition. Mycofeast wanted both the technology and people." Mycofeast's CEO, Witek Hruzewicz, said the acquisition provides a "strong dairy protein platform, proven scale-up capability and a talented New Zealand team" that complements their existing platform. The financial terms of the acquisition were not disclosed.

Over the next 12 months, the focus will be on scaling up bovine lactoferrin production. This involves preparing regulatory filings, conducting customer trials, and transferring the process to Mycofeast's manufacturing facilities.

Broader industry context

This acquisition occurs during a period of significant consolidation in the alternative protein sector. Since September 2024, more than 90 companies in the ecosystem have undergone mergers, acquisitions, bankruptcies, or ceased operations entirely. The move reflects a strategic push by companies to secure scalable and cost-effective routes to novel ingredients like lactoferrin.

The immediate plan for Daisy Lab's bovine lactoferrin is a focused scale-up targeting regulatory approvals, customer trials, and manufacturing transfer within the next year.