St. Louis, Missouri
December 16, 2008
Plant Health Care Inc,
a wholly owned subsidiary of Plant Health Care plc (AIM: PHC),
and Monsanto Company
(NYSE: MON) have entered into an agreement for the
commercialisation of harpin-based technology as a seed treatment
in Monsanto’s major row crops and vegetables. The harpin
technology offers farmers in-season benefits, including the
suppression of pests like nematodes and yield-inhibiting
diseases, as well as additive plant health benefits. The
technology is a specific type of protein that activates a
plant's intrinsic ability to protect itself and enhances growth.
Over the past year Monsanto has evaluated the technology and
will proceed to continue commercial development of harpin seed
treatment as part of its global seed treatment platform.
Under the long-term agreement, Plant Health Care will license to
Monsanto the exclusive rights to commercialise harpin seed
treatment technology in corn, soybeans, cotton, canola and
selected vegetables. In return, Plant Health Care will receive
the milestone payment agreed under the Evaluation and
Development Agreement announced in December 2007, plus ongoing
royalties based on the total volume of Harpin seed treatment. As
part of the agreement Monsanto will issue an order of product to
be delivered by the end of this year. Financial terms were not
disclosed, although Plant Health Care believes the agreement
will make a material contribution to the company’s future
revenue and profits.
John Brady, CEO of Plant Health Care commented, “This agreement,
and the order for product which is 12 months earlier than
anticipated, is transformational for Plant Health Care and is
fundamental proof of our model for commercialising our
technology portfolio in partnership with major industry players.
Monsanto is an excellent partner, and its seed brands hold
leading positions around the world.
He added: “Plant Health Care’s range of technologies, which
includes harpin, are ideally placed to maximize yield benefits
in today’s environment of rising food prices and increased
global demand for high-protein diets.”
Randy Barker, Monsanto’s seed treatment strategy lead, said, “We
are pleased to be working with Plant Health Care to deliver
technology that can provide plant health benefits. Seed
treatments are a natural complement to our seed strategy and
yield-enhancing technology, which enhance the profitability for
our farmer customers.”
Monsanto seeds treated with Harpin may be available to farmers
as part of its Acceleron™ brand seed treatment as early as 2010.
Monsanto’s Acceleron brand will represent a wide range of
evolving seed-performance technologies dedicated to improving
plant health.
Monsanto Company is a leading global provider of
technology-based solutions and agricultural products that
improve farm productivity and food quality. Monsanto remains
focused on enabling both small-holder and large-scale farmers to
produce more from their land while conserving more of our
world's natural resources such as water and energy. For more
information, please visit the company’s web site at
www.monsanto.com.
Plant Health Care plc (“PHC”) is a leading provider of natural
products for plants and soil. Established in 1995 in Pittsburgh
(Pennsylvania) in the United States, PHC currently has
approximately 90 employees and has operations in the United
States, Mexico, the United Kingdom, Spain, and the Netherlands.
The Company listed on the AIM market of the London Stock
Exchange in July 2004. Ticker symbol is PHC.
PHC’s products are aimed at the landscape, agriculture and land
reclamation industries and are environmentally beneficial.
Through the commercialization of these products, PHC is
capitalizing on current long-term trends toward natural systems
and biological products for plant care and soil and water
management. Further information is available at:
www.planthealthcare.com
Acceleron is a trademark of Monsanto Technology, LLC.
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