Performance Plants, Biocentury Transgene sign agreement

A local biotechnology firm has struck another deal with a Chinese company, its second this month. Performance Plants Inc. has signed an exclusive licensing agreement with Biocentury Transgene (China) Co. Ltd.

The agreement gives Biocentury exclusive rights to use Performance Plant's heat- and drought-tolerance technology in its production of Bt-cotton seeds.

While China is the world's largest producer of cotton, heat and drought can sometimes limit its yield.

In addition to receiving milestone fees and royalties, Performance Plants will also have research and development and biosafety regulatory approval costs covered by Biocentury.

Those are hefty expenses, said Yafan Huang, Performance Plants president and chief scientific officer, and shows the company's dedication to getting these products to market.

The deal with Biocentury marks the third one Performance Plants has made with a company based in China. Earlier this month, it signed a memorandum of understanding with Shaanxi Hybrid Rapeseed Research Center.

Performance Plants was the first Kingston-based company to sign a deal with a Chinese company when it did so in July, a commercial licensing and four-year research and development agreement with Beijing Dabeinong Technology Group Co. Ltd. for technologies to be used in the production of soybeans and rice.