Plant Health Care PLC New Technology Update (3523R)
28 Febrero 2019 - 1:02AM
UK Regulatory
TIDMPHC
RNS Number : 3523R
Plant Health Care PLC
28 February 2019
PLANT HEALTH CARE plc
("Plant Health Care" or the "Company")
New Technology Update
Plant Health Care(R) , a leading provider of novel
patent-protected biological products to global agriculture markets,
is pleased to provide the following update on the product pipeline
in its New Technology business, following the recent completion of
a strategic review of the prospects for PREtec (the Company's novel
Plant Response Elicitor Technology platform):
Highlights:
- Plant Health Care is moving lead PREtec peptides forward into
fast-track product development, with anticipated entry into first
markets as early as 2021.
- These products will be addressing markets worth in excess of $5 billion.
- The Company continues to engage with evaluation partners;
seven companies have ongoing evaluations of PREtec or are planning
to initiate field evaluations in 2019.
- The Company intends to sell some products directly to
distributors, to reach market more rapidly and deliver higher
margins for the Company. Discussions have been initiated with
potential partners in the US and Brazil.
- Progress with production methods has advanced, providing
further evidence that PREtec cost of goods should provide a
competitive advantage over 3(rd) party products; margins are
expected to be comparable to those of Harpin
<ALPHA><BETA>.
- First regulatory approval is expected in the US before the end
of 2020 and in Brazil in 2021/22.
PREtec (the Company's novel Plant Response Elicitor Technology
platform) is a novel, environmentally friendly approach to
protecting crops, based on peptides derived from natural proteins.
These proprietary peptides are stable and compatible with
mainstream agriculture practices. By activating the innate growth
and defence mechanisms of plants, PREtec peptides lead to higher
crop yields and better protection against disease and environmental
stresses such as drought. The Company has established substantial
intellectual property around PREtec, with more than 40 patent
applications filed.
Plant Health Care has recently completed a strategic review of
the first product pipeline emerging from PREtec and of the routes
to market for those products. The target markets include corn and
soy (yield increase through seed treatment), control of Asian
Soybean Rust (ASR) and other diseases, sugarcane (yield and
disease), enhanced plant nutrition, and nematode control in fruit
and vegetable crops; most of the larger target markets are in North
and South America. These markets are very large in terms of both
disease control and yield enhancement. As shown in the chart below,
the Company's products will be addressing markets worth in excess
of $5 billion.
Crop: Indication Country: Available Market Size: Value, $
hectares
Corn & soy seed US: 33M ha >90% of US corn and 80% of US
treatment: Yield corn, 36M ha soy receive seed treatments. The
increase soy U.S. seed treatment market was
worth approx. $1.84 billion in
2016 and is expected to exceed
$3.04 billion by 2022.
------------------- ----------------------------------------
Vegetables: nematode US: 1.1M ha US crop losses due to nematodes
control is est. $8 billion annually. Estimated
yield loss due to nematodes has
historically been between 10-20%
in economically important vegetable
crops.
------------------- ----------------------------------------
Soybean: Disease Brazil: 36M In 2017, $1.75B was spent in Brazil
Control (ASR) ha on soybean fungicides and the
global fungicide market was worth
an estimated $15 billion.
------------------- ----------------------------------------
Sugarcane: yield Brazil: 9.9M >628MT harvested sugarcane forecast
increase and ha for 2019, and Brazil expects to
disease control export 23.6MT of sugar. The 2017
export crop was worth over $11.4
billion.
------------------- ----------------------------------------
Row crops: enhanced US: varies US market size was estimated >$950
plant nutrition by crop and million in 2014 with projected
geography annual growth of 8.5% to 2023.
------------------- ----------------------------------------
For each of these target markets, we have identified a lead
peptide and a back-up. The lead peptides for these target markets
include PHC279, which is the subject of our first regulatory
filings, and other peptides selected from the Innatus 3G, Y-Max 3G
and T-Rex 3G platforms.
Strong progress has been made in developing efficient production
methods for PREtec peptides. During 2018, the target production
efficiency for PHC279 was comfortably achieved. Work on production
methodology for other peptides is also promising. This gives the
Company confidence that PREtec peptides will be cost-effective in
the field and provide a competitive advantage. Preliminary
estimates suggest margins could be comparable to those which the
Company currently enjoys with Harpin <ALPHA><BETA> (in
excess of 65%).
As previously announced, the Company has made submissions for
product regulatory approval in the US which is anticipated to
result in first registration during 2020. Registration in Brazil
will follow.
Work continues with evaluation partners to develop both
technical profiles and routes to commercialisation. The Company
expects to access the market through Technology Licences for
several products. However, following the review of its
commercialisation strategy and recognising the growing strength of
the Company's commercial relationship with distributors, some of
the products are now expected to be commercialised directly with
in-country distribution partners. This sales route will take
products to market more rapidly and is anticipated to result in
higher margins being retained by the Company.
Chris Richards, Executive Chairman & Interim CEO, said: "We
are excited about the potential for the product pipeline now coming
out of our PREtec technology. These products are targeting very
large markets, which have the potential to generate substantial
revenues for the Company, which are additive to our existing Harpin
<ALPHA><BETA> sales. Further products will follow from
the PREtec platform. With product launches feasible as early as
2021, we are moving to complement Technology Licensing with direct
sales for some products to enable us to launch products
significantly more quickly. We will update the market periodically
on product development, as we progress towards launching our first
products from the PREtec platform."
For further information, please contact:
Plant Health Care plc Tel: +1 919 926 1600
Chris Richards, Executive Chairman and Interim
CEO
Arden Partners plc (Nomad and Broker) Tel: +44 (0) 20 7614
John Llewellyn-Lloyd / Dan Gee-Summons (Corporate 5900
Finance)
Fraser Marshall (Equity Sales)
Company website: www.planthealthcare.com
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END
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