TyraTech expands strategic partnership with Arysta LifeScience

TyraTech Inc (AIM: TYR) said it signed a new strategic partnership agreement with Arysta LifeScience North America LLC, a subsidiary of agrochemical group Arysta LifeScience Corp, for the exclusive development and sales of designated products based on TyraTech Natures Technology in the US and Canadian agricultural markets.

TyraTech develops and commercialises pesticides based on natural, plant oil derived active ingredients.

The new partnership replaces the previous agreement signed with Arysta in 2006 which was limited to specific horticultural markets throughout the world.

The agreement brings together Arystas agricultural marketing organization with TyraTechs proprietary natural pesticide pipeline, resulting in a new presence for the multi-billion dollar agriculture, horticulture and professional turf pesticide markets.

Under the agreement, Arysta will have exclusive rights to develop, market and sell insecticide, nematicide and fungicide products exploiting the use of TyraTech Nature’s Technology for the US and Canadian agricultural markets.

TyraTech will provide a pipeline of natural active ingredients that have been engineered to deliver a high level of potency against major agricultural pests combined with a strong safety profile for the environment and food crop use. These active ingredients will then be developed by Arysta into products for the control of target pests in a wide range of commercial agricultural and horticultural markets that include vegetables, plantation crops, row crops, specialty crops, ornamentals, and professional turf care.

Arysta will fund the development and registration of all products which can be broadly categorised into two groups. The first group will exclusively use TyraTech Natures Technology active ingredients. The second group will be developed employing the TyraTech EXTEND system which will use a combination of TyraTech Natures Technology? active ingredients with synthetic active ingredients.

The first of these products is in late stage development with regulatory packages submitted in the US, and is expected to be launched in the US in 2009. Development activities are underway on two additional products which are on track to be commercialised by the end of 2010.

The agreement includes a supply agreement for TyraTech to provide the active ingredients and to receive a royalty on the sales achieved by Arysta, as well as an opportunity for a profit share in certain circumstances. In addition there is a two-stage exclusivity fee payable over the next 9 months.