- Bio-Gene Technology (BGT) executes a commercial deal with Evergreen Garden Care
- The partnership gives Evergreen exclusive rights to BGT’s natural tech and data to develop new insecticides for markets in Europe, the UK, Australia and New Zealand
- Evergreen has committed to developing Bio-Gene product formulations and registering end-use products targeting mosquito and ant control
- This includes financial support for BGT’s development and registration costs
- Shares have closed up by a healthy 51.7 per cent at 22 cents each
Bio-Gene Technology (BGT) has executed a licence and development agreement with Evergreen Garden Care.
Together, the companies will develop new insecticide solutions for markets across Europe, the United Kingdom, Australia and New Zealand.
Evergreen is a garden care company based in Europe and Australasia and houses a portfolio of brands such as Scotts, Osmocote, Miracle-Gro, Substral and Fertiligene.
Its partnership with Bio-Gene, an agricultural tech developer, provides Evergreen with exclusive access to BGT’s proprietary natural technology and data, including its Flavocide and Qcide products.
This, in turn, will give Evergreen the exclusive opportunity to evaluate and develop natural product solutions targeting mosquito and ant control — two market segments carrying an estimated retail sales value of around US$600 million (A$801 million).
Under the deal, Evergreen has also agreed to make licence and key milestone payments to BGT to enable ongoing development work. The first and largest of the milestone payments is due within the first 18 months of the deal.
Upon the launch of a commercially viable product, Evergreen is set to pay its partner an agreed, undisclosed royalty on all product sales containing BGT’s technology.
The deal also provides an option for Evergreen to licence the right to develop the ASX-lister’s active ingredients for other applications, with terms to be negotiated separately.
Bio-Gene Chief Executive Officer Richard Jagger said the agreement validated its technology’s potential for a range of consumer applications.
“Evergreen’s strategy fits perfectly with the unique natural technology we are developing at Bio-Gene and it is extremely encouraging [that] such a leading company as Evergreen has committed to further the development of our technology after such an early-stage evaluation,” he said.
Mr Jagger said limited early studies had given both parties the confidence to proceed with the commercial agreement and the next phase of end-use product development.
“This program will focus on specific formulation development for mosquito and ant control, as well as expanding testing to explore a number of key consumer applications for both Qcide and Flavocide,” he said.
Evergreen Global Innovation and Product Director Anne-Marie O’Riordan said the company was excited to partner with BGT to develop natural consumer pest controls based on molecules with a new “mode of action”.
“The early work we have done suggests this natural technology could be the basis of truly differentiated and efficacious products that will be essential to meet the needs of consumers in our key markets,” she added.
Following the news, Bio-Gene closed up a healthy 51.7 per cent at 22 cents per share on October 25.