Saori Trial Update

RNS Number : 5960Q

Plant Health Care PLC

01 March 2021

 

Reach

1 March 2021

PLANT HEALTH CARE plc

("Plant Health Care" or the "Company")

Saori Trial Update

Preliminary results for the Prevention and Treatment of Asian Soybean Rust in Brazil

Plant Health Care^® (AIM: PHC.L) , a leading provider of novel patent-protected biological products to global agriculture markets, provides an update on its most advanced proprietary soybean seed treatment for the prevention and treatment of Asian Soybean Rust ("ASR").

Highlights

· PHC279 has been named "Saori™" for Brazil soybeans, to build brand recognition in the marketplace

· Sixteen field trials successfully completed

· Saori consistently improved control of ASR

· 6x RoI demonstrated for Brazilian soybean growers

· Initial commercial discussions are under way with distributors

· Commercial launch on track for the second half of 2021

Background

PHC279 is the Company's first product from its PREtec platform to be commercialised. To aid brand recognition in the marketplace, PHC279 has been named "Saori™" for seed treatment in Brazil soybeans.

Brazil is the world's leading soybean producer with more than 38 million hectares (95 million acres) planted in the current season. ASR, caused by the fungus Phakopsora pachyrhizi, is a devastating disease which can lead to crop yield loss of up to 90%. Brazilian soybean farmers spent US$2.85 billion on disease control in the 2019/20 season, approximately 90% of which was for ASR control.

Saori is the first PREtec peptide approved in Brazil. PREtec peptides represent a novel class of technology which stimulate the plant to defend itself. Derived from natural proteins, PREtec is an environmentally friendly approach to protecting crops and is compatible with mainstream agricultural practices.

Testing Protocol

To date, the Company has completed 16 trials using commercial volumes of Saori and has 34 trials ongoing this season. PHC and its partners have been visiting the ongoing soybean trials across Brazil.  Preliminary results suggest significantly improved early plant growth and enhanced early season disease control in the Saori treated fields.

Preliminary Test Results

Across all 16 trials, Saori consistently improved control of ASR.  Saori shows potential as a novel tool for integrated pest management systems, reducing the use of potentially less safe agrochemicals during the trial period.

From a value proposition perspective, Saori demonstrated the potential to deliver disease control and increased crop yield worth an average of about US$85/ha for Brazilian soybean growers, delivering a Return on Investment ("RoI") of 6x or more.

PHC has now begun commercial discussions with leading crop protection companies in Brazil, many of which have planted their own soybean trials to independently confirm the performance of Saori.

The Company is planning the commercial launch of Saori during the second half of 2021.  Initial sales will specifically focus on early adopters of novel technologies within the sustainable agricultural markets.  Significant penetration of a market estimated to be worth approximately US$2.56bn per annum is expected over the following three to five years.

Chris Richards, CEO of Plant Health Care said , " Saori has the potential to be a truly disruptive and sustainable technology in soybeans, boosting crop growth while improving disease control.  It is not only highly cost-effective, but also delivers a big step in improving the sustainability of soybean production. While drought delayed planting in many areas of Brazil, Saori is demonstrating encouraging performance during the current soybean season; we are already seeing increased vigour and early season disease control. We look forward with confidence to the initial commercial launch of Saori in the second half of 2021. Outside Brazil, we are preparing to launch PREtec products to markets in the U.S. and other countries, initially targeting markets with opportunities greater than $5 billion."

For further information, please contact:

Plant Health Care plc

Chris Richards, CEO, Tel: [phone]

Arden Partners plc - Nomad & Broker

John Llewellyn-Lloyd / Ben Cryer Tel: [phone]

Vox Markets - Digital investor relations

Paul Cornelius / Kat Perez Tel; [phone]

Company website:   http://www.planthealthcare.com

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