Bio-Gene Technology (ASX:BGT) has signed a Development and License Agreement with STK Bio-Ag Technologies (STK).
STK is an Israel-based pioneer in botanical-based solutions for crop protection, with brands including Timorex Gold, which is used in nearly 40 countries worldwide. STK is also the innovator of the first-ever ‘hybrid’ fungicides, enabling growers to achieve better resistance management, higher yields, reduced chemical residues, and greater exportability to countries, regions and retail chains with strict chemical residue limits.
Bio-Gene said the agreement formalises the existing binding term sheet between Bio-Gene and STK in which Bio-Gene grants STK a worldwide, non-exclusive license to develop Qcide technology for crop protection applications, as well as aquaculture, professional turf and ornamentals markets.
Bio-Gene retains exclusive rights to the global public health, animal health and consumer markets for Qcide, whilst retaining non-exclusive rights for the STK field of use markets.
Bio-Gene CEO Richard Jagger said, “This Agreement is different from our other commercial agreements to date as it provides for a significant commitment of funds by STK as they develop the registration dossier for Qcide active ingredient. As such, it’s been worth the time needed to finalise this important Agreement and reach an outcome both parties are very happy with, as it clearly defines the tasks ahead in registering Qcide in key markets around the world.
“As part of this Agreement, Bio-Gene has retained exclusive rights to the public health, animal health and consumer markets for Qcide globally. We believe there is significant potential for this molecule in these segments. In addition, we have retained non-exclusive rights to crop protection, turf and ornamentals markets, and can work with any of our collaborators in these market sectors should they wish to develop products incorporating Qcide.
"Knowing we have the significant investment required for Qcide registration and maintaining flexibility to operate in our key target markets, as covered by the STK Agreement, provides significant freedom to create commercial deals to bring revenue to Bio-Gene.”
STK Bio-Ag Technologies CEO Arye Tenenbaum added, “We have worked intensively with Qcide for some time and from the data we have obtained, we are excited to be adding the Qcide Technology for biological insect control to our product portfolio. As a pioneer and global leader in botanical-based solutions, we will look to accelerate our partnership with Bio-Gene, as we field test, register and bring products to market.
"The registration process is a necessary step in creating a long and lasting valuable business and we are confident in both the partnership with Bio-Gene and technology in being able to achieve this goal. Longer term, we look forward to bringing natural products to market that provide sustainable solutions to the agriculture industry worldwide.”