Ag-tech company Bio-Gene Technology (ASX:BGT) and STK Bio-Ag Technologies (STK) have announced binding terms on a new global collaboration.
The collaboration will support the commercialisation of Bio-Gene’s Qcide product in crop protection and other market segments.
Bio-Ag Technologies is an Israel-based developer and marketer of botanical and ‘hybrid’ crop protection solutions.
The companies have allowed up to 90 days to complete the transaction documentation.
STK applies advanced botanical science and bio-ag technology in the development and commercialisation of botanical crop protection solutions for growers worldwide and has operations and product registrations in more than 30 countries.
Bio-Gene and STK entered a confidential Material Transfer Agreement in 2021 that facilitated STK’s internal assessment of Qcide technology across various potential applications. Those studies mainly focused on crop protection applications but are also relevant for professional turf and ornamental markets and could be extrapolated into aquaculture, where STK’s Aqua Division operates.
Bio-Gene CEO Richard Jagger said, “STK has been working intensively with our technology for some time now, and the data they have obtained give 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.”
Under the proposed agreement, STK intends to fund registration costs relating to the Qcide Active Ingredient fully. This will include required efficacy and toxicology studies, field trials, the generation of manufacturing data and preparation of the regulatory submission.
While STK would have ownership of the resulting registration, Bio-Gene will continue to own the intellectual property relating to Qcide.
Bio-Gene said it has unlimited access to the registration and can work with other commercial partners to develop and commercialise products in all market segments, including those licenced to STK on a non-exclusive basis.
The proposed collaboration will also see STK utilise its existing expertise and capabilities in plantations and extraction technology to develop a secondary manufacturing and supply source for Qcide.
Both companies have agreed to assess the potential for Bio-Gene to be appointed as a marketing and sales agent for STK products (products based on Qcide and other STK products) in Australia and New Zealand.