Agtech company Bio-Gene Technology (ASX:BGT) has announced a new licence and development agreement with Clarke Mosquito Control Products.
Under the agreement, the companies will collaborate on the development, registration and commercialisation of new insecticide solutions for professional public health mosquito control markets in the US and Cayman Islands.
Clarke is the largest vertically integrated company serving the public health mosquito control market in the US.
The companies entered an option agreement in October 2021. This allowed both companies to negotiate commercial terms and the development pathway towards product registrations and commercialisation of Bio-Gene’s insecticide technologies.
"Those terms have now been agreed," said Bio-Gene.
"Clarke will make licence fee payments over the next three years which will assist ongoing development work by Bio-Gene that is required to prepare for seeking registration of potential mosquito control products featuring the active ingredient Flavocide in the United States.
"Once a commercial product is launched, Clarke's exclusive access to Flavocide for Public Health products will be upheld through a combination of technical transfer fees commensurate with active ingredient production costs and royalty payments on all end-use product sales containing Bio-Gene's Flavocide technology."
Bio-Gene CEO Richard Jagger said, “Clarke’s strategy fits perfectly with the unique natural technology we are developing at Bio-Gene and it is extremely encouraging to see Clarke confirming its belief in our technology after extensive in-house evaluation. Clarke is certainly the company of choice for this market, being vertically integrated across all areas of the business, from product discovery and development to deployment of new products.
“The Agreement with Clarke outlines the commercial pathway and obligations of both parties, including the registration requirements of the Active Ingredients and end use products.
“Bio-Gene will supply Clarke with the Active Ingredient Flavocide, with Clarke having the responsibility of developing and registering end use products, which will complement Bio-Gene’s data procurement and application for the Active Ingredient registration.
“This represents a financial commitment on the part of Clarke over the next five years as the work continues. The licence fees payable by Clarke to Bio-Gene will be used to partly fund our registration costs for the Active Ingredient.”