September 29, 2010

Origin Agritech to co-own Bt-gene exclusive rights

Origin Agritech will possess exclusive rights to sell and develop field crops products that contain Bt-gene technology traits worldwide.

Origin Biotechnology, a wholly-owned subsidiary of Origin Agritech Ltd. announced it has reached a comprehensive, worldwide agreement with the Institute of Plant Protection, Chinese Academy of Agricultural Sciences (CAAS).

For the life of the patent, Origin will also receive exclusive rights to sub-license to any third parties to develop seed products that contain these traits. Origin Agritech will also receive the rights to improve and further develop enhancements on this Bt-gene.

CAAS jointly own the rights to the internally developed Bt-gene. Bacillus thuringiensis or "Bt" is a common soil bacterium that produces crystals that are toxic to certain insects. Origin Biotechnology already possesses the rights to this genetic trait in domestic China, and has been passing this product through the Ministry of Agriculture regulatory trials. This particular Bt-gene, demonstrated to be effective in both laboratory and field environments, is novel to the consumer markets in that it has never been commercialised, and is protected by patents granted separately by China and the US.

As a result of this agreement, Origin Chairman Gengchen Han said, "Origin continues to demonstrate that it is the leading, technology-focused crop seed company in China and improve its global technology product portfolio. Our industry goals are consistent-to lead by serving farmers with unique enabling technology and services, producing, and protecting higher crop yields. We are focused on the production of higher quality seed products, whether proprietary or licensed."

The highly-effective, dominant Bt control solution was discovered in 1901 and first used commercially in 1958. These insecticidal properties captured over 95% of the bio-pesticide market as of 2010, according to industry and academic reports. Over 30 subspecies and 800 different strains of this bacterium are used currently in a variety of control mechanism for several insects and their larva which feed on fruits, vegetables, and other cash crops including corn. Although highly toxic to insects, Bt is harmless to humans because the human body lacks the digestive enzymes needed to dissolve Bt protein crystals into their active form.