PHC.L Regulatory News (PHC)

16 Dec 2008 07:00



16 December 2008

Plant Health Care plc

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

PLANT HEALTH CARE AND MONSANTO SIGN FINAL AGREEMENT FOR THE COMMERCIALISATION OF HARPIN TECHNOLOGY

Plant Health Care Inc, a wholly owned subsidiary of Plant Health Care plc (AIM: PHC), and Monsanto Company (NYSE: MON) have entered into an agreement for the commercialisation of harpin-based technology as a seed treatment in Monsanto's major row crops and vegetables. The harpin technology offers farmers in-season benefits, including the suppression of pests like nematodes and yield-inhibiting diseases, as well as additive plant health benefits. The technology is a specific type of protein that activates a plant's intrinsic ability to protect itself and enhances growth. Over the past year Monsanto has evaluated the technology and will proceed to continue commercial development of harpin seed treatment as part of its global seed treatment platform. 

Under the long-term agreement, Plant Health Care will license to Monsanto the exclusive rights to commercialise harpin seed treatment technology in corn, soybeans, cotton, canola and selected vegetables. In return, Plant Health Care will receive the milestone payment agreed under the Evaluation and Development Agreement announced in December 2007, plus ongoing royalties based on the total volume of Harpin seed treatment. As part of the agreement Monsanto will issue an order of product to be delivered by the end of this year. Financial terms were not disclosed, although Plant Health Care believes the agreement will make a material contribution to the company's future revenue and profits. 

John Brady, CEO of Plant Health Care commented, "This agreement, and the order for product which is 12 months earlier than anticipated, is transformational for Plant Health Care and is fundamental proof of our model for commercialising our technology portfolio in partnership with major industry players. Monsanto is an excellent partner, and its seed brands hold leading positions around the world. 

He added: "Plant Health Care's range of technologies, which includes harpin, are ideally placed to maximize yield benefits in today's environment of rising food prices and increased global demand for high-protein diets."

Randy Barker, Monsanto's seed treatment strategy lead, said, "We are pleased to be working with Plant Health Care to deliver technology that can provide plant health benefits. Seed treatments are a natural complement to our seed strategy and yield-enhancing technology, which enhance the profitability for our farmer customers."

Monsanto seeds treated with Harpin may be available to farmers as part of its Acceleron™ brand seed treatment as early as 2010. Monsanto's Acceleron brand will represent a wide range of evolving seed-performance technologies dedicated to improving plant health.

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About Monsanto Company: Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. Monsanto remains focused on enabling both small-holder and large-scale farmers to produce more from their land while conserving more of our world's natural resources such as water and energy. For more information, please visit the company's web site at www.monsanto.com.

About Plant Health Care plc: Plant Health Care plc ("PHC") is a leading provider of natural products for plants and soil. 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 listed on the AIM market of the London Stock Exchange in July 2004. Ticker symbol is PHC. 

PHC's products are aimed at the landscape, agriculture and land reclamation industries and are environmentally beneficial. Through the commercialization of these products, PHC is capitalizing 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

Note to editors: Acceleron is a trademark of Monsanto Technology, LLC.

This release contains "forward-looking statements" which reflect the companies' current expectations about future performance. These forward-looking statements rely on a number of assumptions and estimates which could be inaccurate and which are subject to risks and uncertainties. Actual results could vary materially from those anticipated or expressed in any forward-looking statement made by the companies due to a number of factors, including without limitation technological uncertainties facing the companies, continued competition in the companies' businesses; the companies' exposure to various contingencies, including those related to intellectual property protection, regulatory compliance and the speed with which approvals are received, and public acceptance of biotechnology products; the success of the companies' research and development activities; compliance with regulations affecting manufacturing; and the effect of weather conditions, natural disasters and accidents on the agriculture business or facilities. Additional risks factors related to Monsanto are detailed in Monsanto's periodic filings with the SEC. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this release. The companies disclaim any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results.