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Highlights
- Bio-Gene has signed a commercial development agreement for Flavocide™ technology.
- The deal gives rights to BGT for commercialising insecticide solutions in the United States and the Cayman Islands.
- The anticipated annual insecticide value of the US public health mosquito market is nearly US$100 million
Bio-Gene Technology Limited (ASX:BGT) remained in spotlight today following its Licence and Development Agreement with Clarke Mosquito Control Products, Inc.
Bio-Gene is an Australian agtech company developing the next generation of novel insecticides. Its unique platform technology is based on a naturally occurring class of chemicals known as beta-triketones.
Clarke is the largest vertically integrated company serving the US public health mosquito control market in the United States. It has expertise in product development, registration, manufacturing and sales and service.
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Agreement details
In October last year, Clarke entered into an option agreement with Bio-Gene, whose terms have now been agreed upon.
The agreement entails the development, registration, and commercialisation of new insecticide solutions. These products will target the professional public health mosquito control markets in the United States and the Cayman Islands.
Clarke will make licence fee payments for the upcoming three years. This will aid the ongoing development work by Bio-Gene that is needed to prepare for pursuing 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 corresponding to active ingredient production costs and royalty payments on all end-use product sales containing Bio-Gene's Flavocide technology.
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Image source: © Vadimmmus | Megapixl.com
Kevin Magro, Executive Vice President, Strategic Partnerships and Alliances for Clarke commented: "We are excited to be partnering with Bio-Gene to develop novel Public Health mosquito control products based on a molecule with a new Mode of Action. The work we have done to date suggests this natural technology could be the basis of truly differentiated and efficacious products that will be essential to meeting the needs of our customers and communities in our key market. Our commitment to invest in the continued development of this active ingredient is a reflection of our confidence in the market potential of the Bio-Gene technology and our commitment to delivering mosquito control innovation through partnerships."
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Prospects of the agreement
- Over 200 million cases of malaria are recorded worldwide.
- More than 400,000 people die from the disease every year.
- The anticipated annual insecticide value of the US public health mosquito market is nearly US$100 million
- The US market is currently facing pressures of resistance to incumbent insecticides and public concerns over the use of various chemistries in controlling mosquito populations.
- Nowadays, the public prefer products of natural origin
- Naturally derived products with a novel Mode of Action, such as Flavocide, are very important for reducing the potential of increased insecticide resistance.
Stock information
Bio-Gene has a market cap of AU$53.99 million. Its last closing price as of 04 April is AU$0.315 with a gain of 3.278%.
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