Licence Agreement

 

TIDMFGN 
 
RNS Number : 0301G 
Futuragene PLC 
25 January 2010 
 

25 January 2010 
 
 
FuturaGene PLC 
 
 
License of enhanced cotton technology to BioCentury Transgene 
 
 
FuturaGene PLC ("FuturaGene" or "the Group", AIM: FGN), a leader in plant 
genetic research and development for global forestry, biofuel and agricultural 
markets, has entered into a licensing agreement with the leading Chinese seed 
producer, BioCentury Transgene Co. Ltd ("BioCentury") to provide cell wall 
modification and salt tolerance genes for development in cotton plants in China. 
 
 
 
Biocentury will develop cotton plants with improved and increased yield, fibre 
quality and salt tolerance characteristics.  FuturaGene and BioCentury will 
share revenues generated by sales of the newly developed cotton seeds. 
 
 
This agreement comes shortly after the granting of a patent by the Chinese 
patent office covering the Group's drought tolerance gene for use in both food 
and non-food crops.  FutureGene also recently licensed its drought tolerance 
technology to Bayer CropScience for utilisation in cotton worldwide. 
 
 
The global cotton seed and trait market is valued at over US $850m per annum 
with China constituting approximately 20%. 
 
 
This agreement further implements the Group's strategic aim to be the leading 
crop technology company for fibre, fuel and food crops.  While the Group's main 
focus is on the development of its Cell Wall Modification and Abiotic Stress 
Tolerance technologies in core forestry and biopower crops, FuturaGene maximises 
further revenue streams through out-licensing its technologies in non-core 
crops, such as cotton. 
 
 
Dr Stanley Hirsch, FuturaGene CEO said, 
 
 
"BioCentury is one of China's largest players in the cotton seed market. 
Combining our yield and salt tolerance traits with BioCentury's capabilities and 
position in the Chinese market will deliver huge benefits for both companies as 
well as to cotton farmers in China. 
 
 
"This important agreement fits well with our strategy - to focus on poplar and 
eucalyptus for the pulp and biomass markets whilst licensing our leading gene 
technologies to major operators for other crops. This strategy ensures we remain 
focused but also benefit from potential royalty revenues, without further 
capital outlay, when our technologies are used in additional crops." 
 
 
Dr. Yasheng Yang, Biocentury CEO said, 
 
 
"We are delighted to partner with FuturaGene, a world leader in plant genetic 
improvement, to develop the next generation of transgenic cotton in China. 
Incorporating FuturaGene's technologies in cotton plants perfectly fits with our 
aim to bring the most innovative and effective traits to the Chinese cotton 
market and help farmers cope with modern agriculture challenges." 
 
 
 
 
Enquiries: 
 
 
+-------------------------------------+------------------------------+ 
| FuturaGene Plc                      |                              | 
+-------------------------------------+------------------------------+ 
| Mark Pritchard, Chairman            |         [phone] | 
+-------------------------------------+------------------------------+ 
| Dr. Stanley Hirsch, Group Chief     |             [phone] | 
| Executive                           |                              | 
+-------------------------------------+------------------------------+ 
|                                     |                              | 
+-------------------------------------+------------------------------+ 
| Evolution Securities                |                              | 
+-------------------------------------+------------------------------+ 
| Neil Elliot                         |         [phone] | 
+-------------------------------------+------------------------------+ 
|                                     |                              | 
+-------------------------------------+------------------------------+ 
| College Hill                        |          [phone] | 
+-------------------------------------+------------------------------+ 
| Adrian Duffield/Rozi Morris         |                              | 
+-------------------------------------+------------------------------+ 
 
 
Notes to Editors 
 
 
About Futuragene PLC - www.futuragene.com 
 
 
FuturaGene is a leader in plant genetic research and development for the global 
forestry, biofuel, and agricultural markets. The Group develops sustainable, 
ecologically sound technology to meet the ever increasing demands for fiber, 
fuel and food crops in the face of declining and deteriorating land and water 
resources. 
 
 
FuturaGene aims to be the leading crop technology company for biomass, second 
generation biofuel and biopower, through two main technology platforms: Cell 
Wall Modification, which helps crops grow faster, enhancing yield and 
processability; and Abiotic Stress Tolerance which enables plants to grow in 
harsh, dry, salty environments or protects yield when plants are stressed by 
these factors. 
 
 
The Group's most advanced technologies are for yield improvement in sustainable 
industrial forestry and it has strong partnerships with leading international 
forestry and agriculture companies, such as Suzano, Bayer CropScience, Forage 
Genetics (Land 'O Lakes), China Academy of Forestry (CAF), AA Alliance and 
Targeted Growth. The Group has established broad applications of its technology 
in key crops including eucalyptus, poplar, alfalfa, cotton and corn. 
 
 
About BioCentury 
 
 
Based in Shenzhen, China, BioCentury Transgene (China) Co. Ltd (BTC) is a fully 
integrated agbiotech and seed company combining innovation and advanced 
technology to help farmers in China and other countries to produce more and 
better quality agricultural products addressing the increasing pressure of 
population growth, food quality, reduced land and water resources, global 
warming and environmental problems. Formed in 1998 around the Chinese invention 
of Fusion Bt technology, BTC has developed from a Bt technology provider to a 
fully integrated seed market leader of cotton, wheat and oil seed rape with its 
own agbiotech R&D center, cotton breeding stations, cotton seed production and 
processing centres and marketing and sales centres throughout the three major 
cotton segments in China. Since 2007, BTC has accelerated its international 
business development and licensed its Fusion Bt technology in India, the 
Philippines, and Vietnam. In addition, BTC has formed a joint venture in 
Pakistan, and is in the process of negotiating with several parties to a joint 
venture in India. BTC's reputation in the seed industry has been built around 
its capabilities in governmental approval processes for transgenic crops in 
China, its technology licensing and tech fee collection mechanisms, as well as 
its pioneering actions to enforce intellectual property infringements of its 
technologies in China. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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