AgriBioTech, Inc. Announces Purchase of HybriGene, LLC and Acquisition of Exclusive Worldwide Rights to Use of HybriGene Technology for All Crop Species
Business Wire - January 25, 1999 08:00
HENDERSON, Nev.--(BUSINESS WIRE)--Jan. 25, 1999--AgriBioTech, Inc. ("ABT") (Nasdaq National Market:ABTX) announced today that it has purchased all the outstanding shares of HybriGene, LLC, a biotechnology company with an extensive patent estate involving site specific recombination technology originally developed at Purdue University.
In addition, as part of the transaction, ABT acquired exclusive, worldwide rights to use the technology in all crops, species, applications and geographies. Included in the technology acquired are four promoters, DNA sequences used to "turn on" genes by providing a gene with instructions regarding when in development and where in the plant they will be active.
One promoter results in constitutive gene expression (activity in most tissues) at a very high level (believed equal to or better than the CAMV 35S promoter, which is the current industry standard).
The biotechnology that ABT has acquired through the purchase of HybriGene and the associated exclusive worldwide licenses for all applications has at minimum two broad applications. It provides a method for developing male sterility in plants (male sterility means not capable of reproduction because no viable pollen is produced); these male sterile plants can be used to create hybrids of any plant species.
One important feature of the technology is that when newly engineered traits are placed in male sterile plants there would be no transgenic pollen, which eliminates the major means of possible migration of transgenic traits from grass to weed species, for instance. It should speed the practical application of transgenic traits in forage and turfgrass species.
The second broad application of the technology provides an alternative way of regulating gene activity. It allows for the control of expression of new transgenes in plants -- they can be either turned on or off, and this is even possible in any generation of the plant.
This technology has potential for the production of specialty chemicals in plants such as pharmaceuticals, industrial compounds such as plastics, industrial enzymes, etc. Compounds that are even toxic to the plant can be produced because the gene can be kept silent during the ramp-up of seed multiplication and then turned on only during the last generation. The plants or seeds are then harvested for extraction of the new compound.
As part of this agreement, ABT has formed a broad research alliance with Pure Seed Testing for development of transgenic bentgrass, bluegrass and other turf species using both parties germplasm. The exclusive stable of patents when developed will provide male sterile plants, which will carry genes for herbicide resistance, disease resistance and other valuable traits to protect plants. Each party will have the ability to eventually market proprietary varieties that have been transformed with new traits.
"This patent estate and related technology gives ABT important new tools in our efforts to build a leading plant biotechnology program," said Dr. Tom Rice, ABT vice president and director of Research.
"The new tools we have acquired and the research alliance with Pure Seed Testing increases our ability to develop new, value-added products for our strategic sector (turfgrass and forage seeds) as well as work with other plant genetics and seed companies to help them realize their goals."
ABT management believes that the new technology brought to the company by this agreement adds significantly to its internal biotechnology capabilities, and complements its other biotechnology and R&D agreements. Johnny Thomas, Ph.D., ABT Chairman and CEO said "We are committed to leading in the introduction of improved, value-added products in the forage and turfgrass seed industry, and this agreement is just one example of that."
In the past seven months, ABT has announced agreements and/or letters of intent to strengthen its R&D and biotechnology position with: Garst Seed Co. (part of the Advanta seed group) for a research license, and commercialization license at ABT's option, to "whiskers" transformation technology; a license and marketing agreement regarding Bt with Mycogen Corp., now a wholly owned subsidiary of The Dow Chemical Co. (DOW); Kimeragen for a license to chimerplasty; Global Agro, Inc. for a biotechnology license and access to genes and the purchase of an equity position in the company; the Noble Foundation for rights to genes that potentially may improve digestibility of alfalfa; and FFR Cooperative for access to leading forage and forage grass germplasm and an R&D alliance.
In addition, the company recently announced the opening of an ABT molecular biology and biotechnology laboratory at the University of Rhode Island, and a marketing agreement regarding herbicide resistant alfalfa. ABT is currently also in discussions with other biotechnology asset owners and potential partners.
Today, Jan. 25, 1999, at 12:30 p.m., Eastern Standard Time (9:30 a.m. PST), Dr. Johnny Thomas, ABT chairman and CEO will host a teleconference. Interested parties may call 800/553-0326 to listen to or participate in the AgriBioTech, Inc. teleconference.
AgriBioTech is a fully integrated full service seed company specializing in the forage and turfgrass seed sector, complete with research and development of proprietary seed varieties, seed processing plants, and a national and international distribution and sales network. AgriBioTech's vision is to lead the turf and forage seed industry in discovering its value potential.
The statements discussed in this press release include forward-looking statements that involve a number of risks and uncertainties. These include the company's historical lack of profitability, need to manage its growth, intense competition in the seed industry, seasonality of quarterly results, weather conditions, volatile stock price and other risks detailed from time to time in the company's SEC reports.
CONTACT: AgriBioTech, Inc.
John Francis, 702/566-2440
www.agribiotech.com
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