- BioPhero brings new game-changing biologically produced
pheromone technology to FMC's award-winning pipeline and product
- FMC expects revenue from pheromones and pheromone-based insect
control products of approximately $1
billion with above company-average EBITDA margin by
- BioPhero's patented fermentation process can manufacture
sustainably advantaged pheromones at costs significantly lower than
PHILADELPHIA, June 29,
2022 /PRNewswire/ -- FMC Corporation (NYSE: FMC), an
agricultural sciences company, today announced a definitive
agreement to acquire BioPhero ApS, a Denmark-based pheromone research and
production company. The acquisition adds biologically produced
state-of-the-art pheromone insect control technology to FMC's
product portfolio and R&D pipeline, underscoring FMC's role as
a leader in delivering innovative and sustainable crop protection
BioPhero has pioneered a highly efficient yeast fermentation
process for manufacturing pheromones at significantly lower costs
and with fewer production steps compared to competitors'
traditional chemical synthesis methods. Lower costs expand the
pheromone addressable market from today's focus on specialty fruit
and vegetables to now include the large row crop market. FMC
expects pheromones and pheromone-based products to contribute
approximately $1 billion in revenue
at above company-average EBITDA margin by 2030.
"This acquisition demonstrates our continuing commitment to
invest in biologicals and adjacent technologies, expanding our
world-class portfolio while advancing sustainable agriculture,"
said Mark Douglas, FMC president and
chief executive officer. "BioPhero is a pioneer in the production
of pheromones through a unique, highly efficient bioprocessing
method—a game-changer in pheromone manufacturing technology. FMC's
broad market access, leadership position in the high-value
insecticide market, formulation know-how and application expertise
provide significant opportunities to bring sustainably advantaged
pheromone technology to more agricultural markets around the world.
We look forward to adding an extensive pheromone platform to our
biologicals business and welcoming the BioPhero team to FMC."
"BioPhero is excited by the opportunity to accelerate our
development and the road to market with the objective to make
pheromones widely available," said Dr. Irina Borodina, co-founder and chief scientific
officer of BioPhero. "Given FMC's leadership position in the
development of biological plant health products, manufacturing and
formulation expertise, and existing operations in Denmark, we believe FMC is an excellent
company to take this business forward. FMC's global market access
and significant investments in R&D will accelerate our ability
to bring highly advanced pheromone insect control technology to
growers around the world."
Pheromones can be used in an integrated pest management program
to control the buildup of insect populations in farmers' fields by
disrupting the insect mating process, reducing overall egg-laying
by adults and decreasing the next generation of the target insect
population. Pheromones do not have an impact on the environment,
promote biodiversity and do not harm beneficial insects, such as
pollinators, since they precisely target specific pests.
"FMC directs 100 percent of its R&D investments to discover
and develop more sustainable products," said Dr. Kathleen Shelton, FMC executive vice president
and chief technology officer. "We're excited to add BioPhero's
innovative pheromone molecules to our new product pipeline, and we
expect to launch five new pheromone products over the next three to
five years. The opportunities for advanced biomanufacturing
technology extend well beyond insect control. Working together, we
can significantly expand the use of fermentation technologies
across a wider set of crops targeting a variety of pests, including
fungi and weeds."
Novo Holding A/S, a world-leading science investor focused on
creating long-term value, has supported BioPhero for six years.
"Novo Holdings believes that biotechnology is a key component in
the transition towards a more sustainable society," said Søren
Møller, managing partner at Novo Holdings. "The technology
developed by BioPhero is an excellent example of using nature's own
pheromones to combat pests in a safe and yet efficient way. Novo
Holdings has invested in BioPhero since inception and has renewed
its commitment to the company in each financing round. We are very
satisfied to see the rapid development of the company, and this
sale demonstrates that FMC shares our vision of introducing new
sustainable solutions in agriculture."
The purchase price of approximately $200
million will be paid at closing. Following regulatory
approvals and satisfaction of customary closing conditions, the
acquisition of BioPhero is expected to be completed by the end of
the third quarter 2022.
FMC will host a webcast conference call on Thursday, June 30, from 9:00 a.m. to 9:30 a.m. ET to discuss additional
details regarding the transaction. The conference call is open to
the public via Internet broadcast and telephone.
Dial-in telephone number:
US Toll Free: 844-200-6205
Canada Toll Free: 833-950-0062
Other International: +1-929-526-1599
Access code: 525940
A replay of the call will be available via the internet and
telephone from 10:00 a.m. ET on
Thursday, June 30 until Thursday,
July 21, 2022.
Internet replay: https://investors.fmc.com
US Toll Free: 866-813-9403
Other International: +44 204-525-0658
Access Code: 609404
FMC Corporation is a global agricultural sciences company
dedicated to helping growers produce food, feed, fiber and fuel for
an expanding world population while adapting to a changing
environment. FMC's innovative crop protection solutions – including
biologicals, crop nutrition, digital and precision agriculture –
enable growers, crop advisers and turf and pest management
professionals to address their toughest challenges economically
while protecting the environment. With approximately 6,400
employees at more than 100 sites worldwide, FMC is committed to
discovering new herbicide, insecticide and fungicide active
ingredients, product formulations and pioneering technologies that
are consistently better for the planet. Visit fmc.com to learn more
and follow us on LinkedIn® and Twitter®.
BioPhero is a pioneer in the production of pheromones used for
insect pest control in agriculture. Our vision is to make
agriculture more sustainable by enabling the application of
pheromones for effective pest control in large-scale row crops.
BioPhero has developed and scaled up a proprietary, biological
production platform based on yeast fermentation. We have assembled
a dedicated, world-class team with competencies within metabolic
engineering, fermentation, chemistry, and process development.
BioPhero was founded in 2016 by Dr. Irina
Borodina as a technology spin-out from the Technical University of Denmark and started
operations in 2018.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: Certain statements made in this release are
forward-looking statements. In some cases, you can identify these
statements by such words or phrases as "will likely result," "is
confident that," "expect," "expects," "should," "could," "may,"
"will continue to," "believe," "believes," "anticipates,"
"predicts," "forecasts," "estimates," "projects," "potential,"
"intends" or similar expressions identifying "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995, including the negative of those words and
phrases. Such forward-looking statements are based on management's
current views and assumptions regarding future events, future
business conditions and the outlook for the company based on
currently available information. These statements involve known and
unknown risks, uncertainties and other factors that may cause
actual results to be materially different from any results, levels
of activity, performance or achievements expressed or implied by
any forward-looking statement. Although BioPhero has completed its
first commercial sale of a significant quantity of its first
pheromone product, BioPhero is still in its early stages of
development or growth, and it may be affected by risks inherent in
operating a business of its nature. The products and technologies
of BioPhero ApS have not yet been implemented at large commercial
scale, and thus our statements regarding the future, including
potential revenue opportunities, are subject to uncertainties
related to development, registration, production and
commercialization of pheromones through use of the BioPhero
production technology. The continued development of BioPhero's
products requires substantial technical, financial and human
resources, and successful development and commercialization of
BioPhero's product line cannot be assured. In the event material
assumptions in regard to the BioPhero platform do not turn out as
expected, we may experience an adverse impact on our business and
financial condition and we may not fully realize what we believe is
the potential of the BioPhero business. Additional factors include,
among other things, the risk factors and other cautionary
statements included within FMC's 2021 Form 10-K as well as other
SEC filings and public communications. Moreover, investors are
cautioned to interpret many of these factors as being heightened as
a result of the ongoing and numerous adverse impacts of the
COVID-19 pandemic. FMC cautions readers not to place undue reliance
on any such forward-looking statements, which speak only as of the
date made. Forward-looking statements are qualified in their
entirety by the above cautionary statement. FMC undertakes no
obligation, and specifically disclaims any duty, to update or
revise any forward-looking statements to reflect events or
circumstances arising after the date on which they were made,
except as otherwise required by law.
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SOURCE FMC Corporation