Myconate Agreement
Plant Health Care PLC
17 January 2007
Embargoed until 7:01am 17 January 2007
PLANT HEALTH CARE PLC
Bayer CropScience and Plant Health Care sign Myconate development and
commercialisation agreement
New seed treatment technology for use in important crops including corn and
soybean worldwide
Bayer CropScience AG and Plant Health Care Inc, a wholly owned subsidiary of
Plant Health Care plc ('Plant Health Care') have entered into an agreement of up
to ten years to develop new seed treatment solutions based on Plant Health
Care's Myconate technology in combination with Bayer CropScience's seed
treatment products. The agreement enables Bayer CropScience to develop and
commercialise new seed treatment solutions.
Plant Health Care will receive an undisclosed up-front payment, two milestone
payments, dependent on the progress of the development, over the next two years
and supply payments. The companies believe that Myconate enhanced seed treatment
products could be available to growers as early as 2009, subject to regulatory
approvals. The contract was signed on 16 January 2007.
In the seed treatment segment, Bayer CropScience offers a broad portfolio of
high-quality products to combat pests and fungal diseases. Plant Health Care's
Myconate technology is known to help crops to develop larger root mass through
the stimulation of naturally occurring mycorrhizal fungi, which in turn often
leads to improved yields and enhanced stress resistance. Both companies will
collaborate on the further development of Myconate as a seed treatment product
in corn, soybean, cotton and sunflower on a worldwide basis.
'We are pleased to have secured the exclusive rights for the development of
Myconate', stated Gerhard Simons, Head of the Business Unit Seed Treatment
within Bayer CropScience. 'This agreement underlines Bayer CropScience's strong
commitment to enhance plant health and to ensure the quality and quantity of
yields. In addition, Myconate shows an excellent strategic fit within our R&D
pipeline and represents an exciting opportunity to further expand and extend the
range of seed treatment products and services Bayer CropScience offers to its
customers.'
Commenting on the agreement Greg Lewis, Managing Director of Plant Health Care
said: 'Bayer CropScience is the innovation leader and the world's number one
provider of seed treatment solutions and we are delighted to be working together
to develop Myconate.'
John Brady, CEO of Plant Health Care added: 'This agreement represents a
significant step forward in the development of our company and provides the
ideal first platform for Myconate. The cooperation with Bayer CropScience
validates the confidence that the Board of Plant Health Care has had in the
Myconate technology. We see a very attractive market potential for Myconate
enhanced crop protection products, with a total target of some 200 million acres
globally.'
-ends-
A briefing for analysts, hosted by John Brady, CEO of Plant Health Care, will be
held at 10:30am today, 17 January 2007, at the offices of Tavistock
Communications, 131 Finsbury Pavement, London, EC2A 1NT.
For further information contact:
Plant Health Care plc
John Brady, CEO; phone: +1 603 525 3702
E-Mail: jabrady@planthealthcare.com
Tavistock Comunications
Jeremy Carey/Matt Ridsdale, phone: +44 20 7920 3150
E-Mail: jcarey@tavistock.co.uk, mridsdale@tavistock.co.uk
Bayer CropScience
Utz Klages, phone: +49 2173 38-3125
E-Mail: utz.klages@bayercropscience.com
Notes to Editors:
About Plant Health Care:
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 70 employees and has operations in the
US, Mexico, UK, 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
About Bayer CropScience:
Bayer CropScience, a subsidiary of Bayer AG with annual sales of about EUR 5.9
billion in 2005, is one of the world's leading innovative crop science companies
in the areas of crop protection, non-agricultural pest control, seeds and plant
biotechnology. The company offers an outstanding range of products and extensive
service backup for modern, sustainable agriculture and for non-agricultural
applications. Bayer Crop-Science has a global workforce of about 19,000 and is
represented in more than 120 countries. This and further news is available at:
www.newsroom.bayercropscience.com
Forward-Looking Statements
This news release contains forward-looking statements based on current
assumptions and forecasts made by Bayer CropScience AG management. Various known
and unknown risks, uncertainties and other factors could lead to material
differences between the actual future consolidated results, financial situation,
development or performance of the Bayer CropScience AG or our parent company,
Bayer AG, and the estimates given here. These factors include those discussed in
Bayer AG's public reports filed with the Frankfurt Stock Exchange and with the
U.S. Securities and Exchange Commission (including Bayer AG's Form 20-F).
Neither Bayer AG nor Bayer CropScience AG assumes any liability whatsoever to
update these forward-looking statements or to con-form them to future events or
developments.
This information is provided by RNS
The company news service from the London Stock Exchange