Futuragene Share Discussion Threads

[robson1974] 03/12/2009 22:44

Also gets mentioned in tomorrows Daily Mail

Shares in FuturaGene jumped 15p to 71p after the agricultural biotechnology firm struck a licensing deal with Bayer CropScience for its drought tolerance technology in cotton. It comes just two days after the group raised £3m through a placing. Evolution Securities labelled FuturaGene 'Trade of the Decade' back in October. Yesterday it said: 'This is the first significant customer for FuturaGene's drought genes.'

[n_w_b] 03/12/2009 21:00

Tomorrow's FT:

Small Caps

FuturaGene , a biotechnology company that specialises in plant cell wallmodification for the biofuel, forestry and agricultural markets, rose sharply yesterday.

The shares gained 26.8 per cent to 71p as the company followed up this week's £3m fundraising with a licensing deal for its drought tolerance technology with Bayer Cropscience.

Under the terms of the agreement, Bayer will pay FuturaGene an upfront licence fee, followed by milestone payments for sales of cotton seeds utilising its technology.

"This is the first significant customer for FuturaGene's drought genes; up to now its many deals with industry majors have related to its yield-enhancing technology, which boosts growth of plant cell walls," said Evolution Securities.

[n_w_b] 03/12/2009 18:43

The key to this deal is that Cotton has a much faster turn around time compaired to their Eucalyptus and Poplar projects...ie The time between sowing and harvesting is obviously quicker.

Therefore revenues from this deal will come through a lot sooner than was previously expected.

Now...a deal on their corn technology could really set things alight here!


IMO this is the next hot sector. Every day we hear of how climate change is affecting the world and the need to reduce Green House Gasses. It was discussed in the "world summit on food" in Rome last month about food shortages in the next 20 yeras.

Perfect play here, as explained in the article below:

Article taken from Small Cap News(post 73 in this thread), with our CEO stating:

"The other fact is that GM crops have led to a reduction in Co2 because there has been less need for agricultural treatment of fields and improved crop methods because of GM," he said. "The carbon reduction in 2007 from GM crops was the equivalent of taking 6.3 million cars off the road – that's 24% of the cars in the UK.

"If people looked at the science behind GM instead of the incorrect public perception, they would actually see that these technologies are phenomenally beneficial for the environment."


Also, how many millions of people live in inhospitible places in this world where nothing grows due to drought or extreme temperatures? FGN's technology allows plants to grow in harsh, dry and salty environments.

Cotton today, corn maybe tomorrow....just imagine they apply their technology to all plants!

Post 73 is a definate read for anyone new here: CEO talking.

[safman] 03/12/2009 15:39

yes, a multi-billion dollar company, and to really succeed you need strong backing, and this certainly is very good for FGN...


"3 December 2009. FuturaGene PLC ("FuturaGene", or the "the Group", AIM: FGN) and
Bayer CropScience have entered into a license agreement for a drought
tolerance technology.The agreement grants Bayer CropScience exclusive worldwide
rights to utilize a FuturaGene drought tolerance technology in cotton.
FuturaGene will receive an upfront license fee, followed by development
milestone payments and trait royalties on sales of cotton seeds incorporating
this technology. Further financial details were not disclosed. "

licensing the way to go imo.. they have raised the equity and don't require any more.. (at this present juncture)

saffy..

[someuwin] 03/12/2009 15:32

As far as I know they had never mentioned Cotton plants before, then out of the blue they announce a licensing agreement with Mega company Bayer!

Makes you wonder who will be signing up next?

[safman] 03/12/2009 15:21

this is beginning to look v good on an uptrend.. EVO as house broker have consistently been on bid, a good sigh, and i reckon much more to come...

saffy..

[safman] 03/12/2009 12:41

nwb, i think you beat me to it.. just for those who don't like clicking on links...
FuturaGene (FGN.L) Buy

Trade of the decade

Relentless population growth is placing a severe strain on our agricultural
resources. By 2020 the world's forests and farms will have to provide
timber and food for 800m more people than they do today. The drive to
boost crop yields led to a twenty-fold increase in Monsanto's share price
in the last decade; we think similar trends will make FuturaGene a stellar
performer in the next.

Yield-enhancing technology for the forestry and biofuel sectors
FuturaGene's genetic technology can boost farm and forestry crop yields by
25-300%, depending on species. It can also accelerate growth, improve stress
tolerance and enhance productivity in paper and biofuel processing plants.
Billion-dollar customers in billion-dollar markets

The Top 10 wood-producing countries exported $100bn of forestry products in
2005, so a 25% yield increase would create more than $25bn of value a year.
Unsurprisingly, several major forestry and agricultural players have expressed
interest in FuturaGene's technology.
Suzano Papel e Celulose (EV $5bn), the world's No2 eucalyptus pulp producer, has
contracted to use FuturaGene's technology in its plantations. Suzano has
completed a successful three-year trial of FuturaGene's eucalyptus prototypes, and is currently pursuing regulatory approval for commercial deployment.
FuturaGene is also working with: the largest supplier of alfalfa seeds in the US; a leading developer and supplier of seedlings for China's forestry industry; a biotech with access to the huge US corn market; one of Thailand's largest forestry companies. If these partnerships progress to plan, we estimate they could generate annual royalties worth tens of millions of dollars.

A hidden gem with huge potential

Although FuturaGene has made excellent progress with customers in recent
years, a legal dispute – now fully resolved – with the company's founders
prevented the current management from promoting the story to investors. We
now expect a more active approach to investor relations and positive newsflow
from the Suzano partnerships – and a significant boost to FuturaGene's profile.
Demographic trends suggest that the next decade will be extremely interesting
for FuturaGene and its shareholders. Wide adoption of FuturaGene's technology
could add billions of dollars to the annual output of the forestry and biofuel
industries. Even if FuturaGene captured only a tiny proportion of that value, its profits would dwarf the company's current market cap of £25m. BUY.

saffy..

[n_w_b] 03/12/2009 12:37

Reposting EVO's previous note for anyone new here; which is an excellent read and gives some indication of future potential :

[robson1974] 03/12/2009 12:28

pretty new to all this any quick compare and contrast with

Plant Impact and
Plant Healthcare ?

[someuwin] 03/12/2009 12:26

Looks extremely interesting. Great long term prospects. Took a few today. will look to add.

[safman] 03/12/2009 12:24

I have been here for some time .. the share price was dragged down because of a combination of factors, let alone the litigation issues which are now resolved...

its in with big boys now, and i think more to come as the EVO analyst stated...

saffy..

[n_w_b] 03/12/2009 12:21

Nice find Safman

... and there was me thinking I'm the only one here!

It's been lonely, but the fun is about to start.

[n_w_b] 03/12/2009 12:19

Just mentioned in todays FT Alphav
ille and a good comment in tomorrow FT hopefully:






NH a very quick trip to small cap corner

NH to reveal a stock Murph

NH tipped with no success whatsoever

NH during his days at the Guardian

NH its called Futuragene

NH and it does plant technology

NH earlier this week it raised £3m

NH and today it has announced a big deal with Bayer

NH here's what Evo made of the deal

NH EVO TAKE – FuturaGene is now fully-funded, allowing long-term investors
to buy the shares without having to worry about the financing risk. This
means that deals like the one signed with Bayer Crop Science today should
have a significant impact on the share price.

NH DETAILS – FuturaGene has followed up Monday's announcement of its
£3m placing (with warrants over a second tranche of £3m expiring next
December) with a license deal with Bayer for its drought tolerance
technology. This is the first significant customers for FuturaGene's drought
genes; up to now it's many deals with industry majors have related to its
yield enhancing technology which boosts growth of plant cell walls.

NHVALUATION AND RECOMMENDATION – Our initiation on FuturaGene
was titled 'Trade of the Decade'. Although genetic technologies take
several years to commercialise, they are extremely valuable once they are
in place, literally adding billions of dollars to global agricultural output.
FuturaGene's market cap of £28m (yesterday's closing price) is tiny
compared to the potential value of its technology, and today's license with
Bayer is yet another indication of this. Remains a BUY.

NH Trade of the Decade

NH that will be music to Murph's ears

Futuragene (FGN:LSE): Last: 64.00, up 8 (+14.29%), High: 69.00, Low: 63.40, Volume: 63.39k
NH and if the technology is as good as claimed

NH there could be further deals on the way

[safman] 03/12/2009 12:16

"Bayer CropScience is with annual sales of about EUR 6.4 billion one of the world's leading innovative cropscience companies in the area of crop protection (Crop Protection), non agricultural pest-control (Environmental Science), seeds and plant biotechnology (BioScience)."

one of my favorite sectors as well..

saffy..

[n_w_b] 03/12/2009 11:05

10:30GMT 03 Dec 2009-FuturaGene up on Bayer licence deal

Shares in FuturaGene Plc rise 14 percent after the agriculture biotech enters into a licence deal with Bayer CropScience for its drought-tolerance technology for cotton.

"FuturaGene's market cap of 28 million pounds is tiny compared to the potential value of its technology, and today's licence with Bayer is yet another indication of this," Evolution Securities analyst Philip Sparks says in a note.

The broker, which has a "buy" rating on the stock, says FuturaGene is now fully funded, allowing long-term investors to buy the shares without having to worry about the financing risk.

"This means that deals like the one signed with Bayer CropScience today should have a significant impact on the share price," he says.

[safman] 03/12/2009 08:31

certainly looking good.. i reckon more good news to come, and potentially more lucrative contracts...

saffy..

[n_w_b] 02/12/2009 06:13

"Futuragene eased 1.7 per cent to 57p in spite of raising £3m via an equity placing at 50p a share."



Last time they did a placing in May, at a price of 34p, it shot straight up to over 60p. Maybe we'll experience a delayed bounce?

Now that they have funds secured for the next 18 months and possible double that, if the additional Warrants are awarded, FGN are in a much stronger financial position to accelerate their development programme.

Additionally gone will be the uncertainty regarding funding and it will put them in a stronger position to sign more favourable Joint Ventures.

Plus, with the potential of another £3m, via the Warrants, they maybe fully funded up to their first revenue streams.

[robson1974] 13/11/2009 12:34

not sure if posted before?

[n_w_b] 24/10/2009 10:05

No wonder EVO securities say that FGN could be the "trade of the decade"!



FuturaGene: getting to the root of crop technology

23 October 2009

Dr Stanley Hirsch knows that one of the biggest challenges his company faces in the coming years is getting companies, governments and consumers to think differently about what can be achieved with genetically modified crops.

It's a subject that has caused consternation among environmental lobbyists everywhere, and left proponents of these new technologies treading very carefully. But with widely predicted food and fuel shortages triggered by rapidly growing populations and the effects of climate change, it looks like there is a thawing in some quarters towards what can be achieved with science.

This week the Royal Society, the UK's national academy of science, called for an extra £2bn to be spent on research into global food security. In order to achieve the estimated 50% increase in food crop production that will be required by 2050, the society is calling for a grand plan that involves developing improved crop varieties using conventional breeding and genetic modification.

This is old news to Hirsch, who has spent more than 25 years running biotech ventures. Nine years ago he merged his CBD Technologies business into AIM listed crop specialist FuturaGene plc. Since then, the chief executive has been leading efforts to develop genetic solutions that both boost crop yields and protect plants from harsh conditions.

Biotech success

FuturaGene's multi-billion dollar core markets include global forestry, where it has developed a fast-growing variety of eucalyptus tree for the pulp and paper sector; and biofuels, where it has come up with an elite variety of poplar tree to provide a carbon-neutral fuel for power stations. It also boasts a string of non-core growth-enhancing gene traits for a variety of other crops.

As well as using some of its own in-house development, FuturaGene has focused on building strong relationships with universities all over the world, from which it takes promising genetic advances and turns them into commercial products.

While it has yet to make any money – and a new funding round is likely to come soon – the most surprising aspect of the company is the progress it has made in just three years. Biotechs are notoriously vulnerable to either failure or being taken out by larger players. In the case of FuturaGene, it has managed to take its technology from the lab, into field trials and has now signed commercial deals with industry players.

In effect this means that the company is succeeding in a field dominated by just a handful of giants – such as Monsanto, Syngenta, Bauer and DuPont. In Brazil, for instance, a long term tie-up with the country's second largest eucalyptus grower, Suzano, looks likely to be the source of the company's first revenues.

Suzano operates more than 300,000 hectares of company-owned forest sites in Brazil and is planning to expand that to over 600,000 hectares in the next five to six years. Having pioneered the use of eucalyptus for paper and pulp, the group has turned to FuturaGene to boost its productivity by a possible 25%, once it gets Government approval.

"We have done initial field trials with them and in 2009 they exercised a commercialisation option with us," Hirsch said. "The market just through Suzano is 300m trees – growing to 600m trees. We get a fee per tree planted and a share of the premium generated by our technology. This is an incredibly lucrative deal for the company and will be the start of our recurring revenues."

Not only that, but three and a half years later Suzano is obliged to sell the science on to the rest of the South American market. The Brazilian eucalyptus estate alone accounts for 3.7m hectares – more than 4bn trees. "These are huge potential markets," Hirsch said.

Growth surge

Hirsch puts much of FuturaGene's progress down to its focus on specific markets and the synergies between its two main platforms. On one hand, its plant cell wall modification technology helps crops grow faster and makes them easier to process. On the other, abiotic stress tolerance enables plants to grow in harsh, dry, salty environments, which again improves productivity.

"We have been very focused on a particular market sector which has allowed us to be very capital efficient," Hirsch said. "We have a long-term, focused management team that has defined a strong strategic sector and we have kept that up through what were difficult years in the genetic modification business – but we are now seeing a strong thawing in that, driven by global drivers."

Its technology has now attracted embattled crop producers all over the world, with the company's eucalyptus crops being targeted at a string of countries in the southern sub-tropical crescent, which begins in Brazil and runs through southern Africa, India, South East Asia and into China.

"Apart from the major deal in Brazil and one in South East Asia, we also have partnerships in the US, East Asia, Israel and China, including one with the China Academy of Forestry, which is the Government forestry development agency," Hirsch said. "We are also talking to other players in that crescent, in southern Africa and India to broaden our hold on that market."

Aside from targeting the paper and pulp industry through its work in plantation forestry, the company is also tapping into the increasing use of wood as a biopower, particularly in the US. It is also exploring ways in which its technology can make it easier to remove the cellulose from non-food crops like wood, which can then be turned into biofuels.

"We see the biofuels market maturing," Hirsch said. "As the technology matures over the next four to five years we will be very well positioned to supply fast-growing trees into that market."

Elsewhere, FuturaGene's portfolio of technologies means that it can do a lot of additional deal-making with other crops. According to Hirsch, the next few years will see the company increase its management depth to open up new partnering opportunities, as well expanding its own R&D capacity to offset the, albeit low, level of royalty commitments it has to universities. "All of that put together gives us a high level of gross profit projection," he said.

Hirsch's views on genetically modified crops are obviously positive, but his comments appear valid on the basis of some of the figures coming out of the world agricultural industry. He reckons that just in terms of production, the world would have needed another 12 million hectares of land in agriculture in order to produce the same amount of food in 2007 than it needed with GM crops.

"The other fact is that GM crops have led to a reduction in Co2 because there has been less need for agricultural treatment of fields and improved crop methods because of GM," he said. "The carbon reduction in 2007 from GM crops was the equivalent of taking 6.3 million cars off the road – that's 24% of the cars in the UK.

"If people looked at the science behind GM instead of the incorrect public perception, they would actually see that these technologies are phenomenally beneficial for the environment."

Ben Hobson, SmallCapNews.co.uk

[n_w_b] 07/10/2009 18:34

Maybe this will be the next news?

"Three years of trials in Brazil have demonstrated that its GM technology can make eucalyptus trees grow 25% faster than usual. A joint venture with Suzano is now awaiting approval from Brazil's agriculture ministry to go ahead with full-scale commercial production."

[robson1974] 06/10/2009 11:02

solid move, will probably consolidate here

what news are we expecting?

[robson1974] 06/10/2009 09:27

looks like people are slowly waking up and getting around to reading the FT market report 'trade of the decade' comment

[safman] 06/10/2009 08:12

very interesting prospect. volume already, that has'nt been the case for a while..

saffy..