Arysta Lifescience get license agreement for BugOil with Plant Impact

Plant Impact announced that it had signed a worldwide license agreement for BugOil with Arysta on Monday. Arysta is no small player, with US$1.3 billion in revenues in 2008 and operations in125 countries; it is a top ten player in the global agrochemical sector.

 
BugOil is a patented plant insecticide based on natural oils that targets sap-feeding pests including whiteflies, aphids and mites. Trials concluded in 2008 showed BugOil achieved 100% control of mites within 3 days compared with 14 days for standard treatments. These results certainly caught the attention of several large crop protection companies, including Arysta Lifescience.

Specific financial terms of the agreement were not disclosed, but Plant Impact said it was “potentially a multi-million pound agreement including milestone payments and royalties.” Plant Impact confirmed that it will be eligible to receive three milestone payments; one upon signing the agreement, a second when four regulatory milestones are achieved, and a third when three sales milestones are achieved. Plant Impact also stated that it would receive royalty payments on sales of BugOil “in line with the usual rate of royalty payable in the agrochemical industry.”

The agreement gives Arysta a twenty year exclusive world-wide license to manufacture, sell and sub-license BugOil in all markets except the home and garden and animal health markets. An EU regulatory submission for BugOil was made in August 2008 by Plant Impact and a US submission is underway. As part of the agreement, Plant Impact will continue with attaining regulatory approval in the UK, EU and United States, while Arysta will be responsible for the rest of the world and at a state level in the United States. Plant Impact went on to report that it expected to receive EU approval in early 2010.