Agreement with Germains Seed

RNS Number : 3876S

Plant Health Care PLC

09 September 2010

 



9 September, 2010

Plant Health Care plc

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

PLANT HEALTH CARE ANNOUNCES LICENSING DEAL WITH

GERMAINS SEED TECHNOLOGY

Plant Health Care (AIM: PHC), a leading provider of naturally derived products to the agriculture and landscape industries,announces that it has signed an exclusive agreement with Germain's Seed Technology ("Germains"), a subsidiary of Associated British Foods plc, to develop and market Plant Health Care's Harpin proteins as a seed treatment for sugar beets worldwide in combination with Germains' seed priming technologies. The combined treatments will have the potential to be used on all sugar beet, which annually occupy more than 10 million acres worldwide.

Germains, part of the British Sugar Group, is the largest independent seed treatment company in the world. It develops and markets seed priming technologies, and through its Advantage^® and XBEET^® systems is the leading provider of priming treatments for sugar beet seed.  It currently has a market share in sugar beet of over 40% in the US, over 35% in the Western and Central European markets and a strong presence elsewhere in the world.

Harpin is a specific protein that activates a plant's innate ability to protect itself and enhance growth and yield. The technology offers yield improvement, the suppression of pests like nematodes and protection against damaging diseases, as well as additive plant health benefits.

In trials, Harpin, applied as a seed treatment, has been shown to significantly reduce nematode infestations and increase yields on a variety of crops. Plant Health Care currently has a licence in place with Monsanto Company for the use of a specific Harpin protein on major row crops and vegetables. This sugar beet licence is the first of several agreements currently being pursued by the Company in order to deliver Harpin seed treatments to an increasing range of crops and to a larger acreage worldwide.

Germains will invest in the development of Harpin with the goal to include it as a component in its next generation of sugar beet seed treatments. Financial terms of the agreement are confidential but are consistent with the format of the Company's other partnering arrangements.

The board of Plant Health Care believes that this deal clearly demonstrates not only the potential of the Company's Harpin technologies in higher value specialty crops but also the breadth of potential partners available for the commercialisation of its technologies.

John Brady, CEO of Plant Health Care said: "We are thrilled to be working with yet another world leading company that has recognised the enormous potential of Harpin. The commitment of Germains to invest in the development of Harpin as a component in sugar beet combined with its worldwide market presence again validates the expectations of our Harpin portfolio." 

Mr. Paul Mullan, Managing Director and CEO of Germain's Seed Technology said, "Yield enhancement technologies are a core part of our vision to maximise nature's potential. At a time when pressure on land, water and resources is greater than at any time in human history, Germains exists to help its customers maximise the productivity and cost-effectiveness of their crops. This opportunity to work with Plant Health Care will allow us to build industry-leading combinations of the latest technological and biological tools and techniques to enhance the natural potential of sugar beet seed."

- ENDS -

For further information, please contact:

Plant Health Care plc
John Brady, Chief Executive Officer
Tel: [phone]
[e-mail]

Evolution Securities	Tavistock Communications
Tim Worlledge / Tim Redfern	Jeremy Carey/Matt Ridsdale
Tel: [phone]	Tel: [phone]
[e-mail] [e-mail]	[e-mail] [e-mail]

About Plant Health Care plc: Plant Health Care plc ("PHC") is a leading provider of naturally derived products to the agriculture and landscape industries. Established in 1995 in Pittsburgh (Pennsylvania) in the United States, PHC currently has approximately 90 employees and has operations in the United States, Mexico, the United Kingdom, Spain, and the Netherlands. The Company's ordinary shares have been quoted on the Alternative Investment Market ("AIM") of the London Stock Exchange since July 2004 and listed on the Official List of the Channel Islands Stock Exchange ("CISX") in February 2010 (ticker symbol/ mnemonic: PHC).

PHC's products are aimed at the agriculture and landscape industries and are environmentally beneficial. Through the commercialisation of these products, PHC is capitalising 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 Germains Seed Technology: Germain's Seed Technology is the world's largest independent seed technology company focused on both the sugar beet and horticulture industries. Created almost 150 years ago in California, Germains now has nine locations in six countries across the EU, North America and China www.germains.com.  Germains is part of British Sugar Group, one of the largest sugar producers in the world with sugar operations in the UK, Spain, China and southern Africa www.britishsugargroup.com.

About Associated British Foods plc is a diversified international food, ingredients and retail group with global sales of £9.3 bn and 96,000 employees.  It is listed on the London Stock Exchange with a market capitalisation of £8.06 bn.  It operates in 44 countries with significant businesses outside Europe in southern Africa, the US, China and Australia.  Its aim is to achieve strong, sustainable positions in markets that offer potential for profitable growth.  It strives to achieve this through a combination of growth of existing businesses, the acquisition of complementary new businesses and achievement of high levels of operating efficiency www.abf.co.uk.

 

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