| AgriBioTech and
Mycogen to develop insect resistant alfalfa using Bt technology |
Las Vegas, Nevada
September 21, 1998
Dr. Johnny R. Thomas, Chairman and Chief Executive Officer, AgriBioTech, Inc. (NASDAQ National Market: ABTX)
announced today that AgriBioTech and Mycogen (NASDAQ
National Market: MYCO) have signed a letter of intent to jointly develop insect-resistant alfalfa
varieties.
Insect-resistant alfalfa varieties will be marketed to capture the added value expected to
result from higher yields, increased stand persistence and enhanced nutritional value.
AgriBioTech and Mycogen will share equally the captured incremental value added under the
terms of the exclusive
license. AgriBioTech and Mycogen have also agreed to priority negotiations on
insect-resistant turfgrasses utilizing Bt technology.
Mycogen will be responsible for screening its Bt gene and strain library in order to
identify genes active against the insect pests targeted by AgriBioTech. Mycogen will
provide AgriBioTech with the selected genes in an expression cassette ready for
transformation into alfalfa. "Matching
Mycogen’s Bt insect-resistant technology with AgriBioTech’s industry-leading
alfalfa and turfgrass breeding and marketing capabilities will be good for both companies
and our customers," said Mycogen’s President, Carl Eibl. "Over the long
term, Mycogen will have an opportunity to
generate significant revenue from our participation in the value added to
AgriBioTech’s seed products, and we will also be able to market jointly developed
insect-resistant alfalfa seed under the Mycogen® brand."
AgriBioTech will be responsible for all transformation, regeneration, selection conversion
and breeding activities. AgriBioTech will utilize its germplasm for all breeding
activities. AgriBioTech will be primarily responsible for marketing the insect resistant
varieties. Mycogen will also
market product through its distribution channels. According to Dr. Tom Rice, Vice
President and Director of Research for AgriBioTech, "Insect resistance is a priority
target based upon the value it will bring to our customers. AgriBioTech is pleased to
combine its emerging biotechnology capability, its leading germplasm position and its
industry-leading market share with Mycogen’s exceptional Bt technical capabilities
and intellectual property."N1217 |
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