Bio-Gene Technology Limited, an agtech development company enabling the next generation of novel insecticides, has announced the signing of 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 leading brands like Timorex Gold, which are used in nearly 40 countries around the world. 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 very strict chemical residue limits.
This Agreement formalizes 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 public health, animal health and consumer markets for Qcide globally, whilst retaining non-exclusive rights for the STK field of use markets.
Commenting on the execution of the Development and License Agreement, 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 finalize 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.”
CEO Arye Tenenbaum of STK Bio-Ag Technologies commented, “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.”
Under the Development and License Agreement:
- STK will fully fund registration costs relating to the Qcide active ingredient. This includes required environmental and toxicology studies, field trials and the costs associated with preparing the regulatory submissions;
- While STK will have ownership of the resulting registrations, Bio-Gene will continue to own the IP relating to Qcide, and has unlimited access to the registrations for exclusive use in public health, animal health and consumer markets for Qcide globally; and
- Bio-Gene 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 use its existing expertise and capabilities in production of natural plant extracts to develop a secondary manufacturing and supply source for Qcide.
Both companies are also assessing 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.