Picture living in an ideal world where everyone wins—you, your clients, and your crops (albeit not your insects). This is the utopia that Bio-Gene Technology (ASX: BGT) aims to achieve with its chemical-free insecticides that insects don’t develop an immunity to.
Together with Israeli developer and marketer of crop production solutions STK Bio-Ag Technologies, the Company has determined agreement terms for the commercialisation of Bio-Gene’s Qcide—an oil-based insecticide with tasmanone as its active ingredient. Qcide’s goal is to enable natural insect control.
Crop protection is the largest market segment for insecticides globally, valued at $24 billion per annum and growing. Given that, Bio-Gene has a profitable potential on its hands that STK can help tap. In 90 days, the companies will complete the transaction document, term sheets and development plan.
On the partnership, Bio-Gene CEO, Richard Jagger, commented, “STK has been working intensively with our technology for some time now, and the data they have obtained gives both companies great confidence in the applicability for STK’s target markets. Not only does STK see the commercial potential for our technology, but they see the benefit in collaborating with Bio-Gene to accelerate the registration process; to invest in an additional production base; and to explore mutually beneficial marketing arrangements.”
STK is an AgTech technology distributor company that applies advanced botanical science and bio-ag tech to develop and sell crop protection solutions to growers. It has operations and product registrations in more than 30 countries.
In 2021, both companies entered into a confidential Material Transfer Agreement. After that, STK began its internal assessment of Qcide across multiple potential applications.
Executive Vice President of R&D and Business Development for STK, Shay Shaanan, shared, “Our research to date suggests there are great applications for the technology, which fall into our areas of expertise. Throughout the evaluation phase, we have developed a strong relationship with Bio-Gene, which will serve all of us well as we work together to develop new products for the market.”
STK will be making a multi-million dollar investment in the studies and registrations associated with the Qcide Active Ingredient, tasmanone. This will include required efficacy and toxicology studies, field trials, generating manufacturing data, and preparing regulatory submissions. STK will own the registration, while Bio-Gene will own the Qcide IP. That said, the Company will still have unlimited access to the registration and can work with other commercial partners.
The companies will also consider whether Bio-Gene can be appointed as a marketing and sales agent for STK products (based on Bio-Gene’s Qcide and other STK products) in Australia and New Zealand.
This transaction is a big win for Bio-Gene, as it sets the path for Qcide to succeed in motion. It gets a major financial boost from STK, access to STK’s expertise and the capability to develop manufacturing solutions for botanical-based products. Finally, like is the dream for most small caps, it gets to go global.
Jagger added, “This is a very strong validation of the potential for our Qcide technology. STK is an established global developer and provider of innovative, environmentally friendly botanical solutions in the crop protection and aquaculture segments. STK’s commitment and confidence are reflected in a multi-million dollar investment in registration activity and manufacturing capacity.”
The collaboration will continue—at the very least—till the USA EPA registration remains in place (reviewed by the EPA at least every 15 years from registration) or is terminated for lack of performance by either party, which, as per the report, is unlikely to happen.
Alinda is a Business Reporter for The Sentiment
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