FMC Corporation Significantly Expands Biologics Platform with Agreement to Acquire BioPhero
BioPhero brings revolutionary new biologically produced pheromone technology to FMC’s award-winning pipeline and product portfolio.
FMC expects revenue of approximately $1 billion with an EBITDA margin above the company average by 2030.
BioPhero’s patented fermentation process can manufacture beneficial pheromones sustainably at significantly lower costs than competing processes.
PHILADELPHIA CREAM, June 29, 2022 /PRNewswire/ — FMC Corporation (NYSE: FMC), an agricultural science company, today announced a definitive agreement to acquire BioPhero ApS, a Denmarkpheromone research and production company. Acquisition adds cutting-edge, bio-produced pheromone-based insect control technology to FMC’s product portfolio and R&D pipeline, underscoring FMC’s role as a leader in providing innovative and sustainable pest control solutions cultures.
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. Declining costs expand the addressable market for pheromones from today’s focus on specialty fruits and vegetables to now include the field row crop market. FMC expects pheromones and pheromone products to contribute approximately $1 billion of revenue to an EBITDA margin above the company average by 2030.
“This acquisition demonstrates our continued commitment to investing in biologics and adjacent technologies, expanding our world-class portfolio while advancing sustainable agriculture,” said Mark Douglas, President and CEO of FMC. “BioPhero is a pioneer in the production of pheromones through a unique and highly effective bioprocessing method, which is a game-changer in pheromone manufacturing technology. FMC’s broad market access, its leading position in the insecticide market with high added value, its formulation know-how and application expertise offer significant opportunities to bring sustainably beneficial pheromone technology to more agricultural markets around the world. broad pheromone platform to our biologics business and to welcome the BioPhero team to FMC.
“BioPhero is excited about the opportunity to accelerate its development and time to market with the goal of making pheromones widely available,” said Dr. Irina Borodin, co-founder and scientific director of BioPhero. “Given FMC’s leadership position in the development of organic crop protection products, its manufacturing and formulation expertise, and existing operations in Denmark, we believe that FMC is a great company to take this business forward. FMC’s global market access and significant R&D investments will accelerate our ability to bring highly advanced pheromone-based 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 adult egg laying and decreasing the next generation of the target insect population. Pheromones do not impact the environment, promote biodiversity and do not harm beneficial insects, such as pollinators, because they precisely target specific pests.
“FMC directs 100% of its R&D investments to discover and develop more sustainable products,” said Dr. Catherine Shelton, executive vice president and chief technology officer of FMC. “We are excited to add BioPhero’s innovative pheromone molecules to our new product portfolio, and we plan to launch five new pheromone products over the next three to five years. The opportunities for advanced biomanufacturing technology extend far beyond insect control. can significantly extend the use of fermentation technologies to a wider set of crops targeting a variety of pests including fungi and weeds.
Novo Holding A/S, a world-leading science-based investor focused on long-term value creation, has backed BioPhero for six years. “Novo Holdings believes that biotechnology is a key element in the transition to a more sustainable society,” said Søren Møller, Managing Partner at Novo Holdings. “The technology developed by BioPhero is an excellent example of using natural pheromones to control pests safely and effectively. Novo Holdings has invested in BioPhero since its inception and has renewed its commitment to the company with each round of funding. We are very pleased to see the rapid development of the business, and this sale demonstrates that FMC shares our vision of bringing new sustainable solutions to 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 close by the end of the third quarter of 2022.
FMC will host a webcast conference call on Thursday June 30of 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 webcast and telephone.
Telephone number to dial:
WE Free: 844-200-6205
Canada Free: 833-950-0062
Other internationals: +1-929-526-1599
Access code: 525940
A replay of the call will be available via the Internet and by telephone from 10:00 a.m. ET Thursdayfrom June 30 to Thursday, July 21, 2022.
Web replay: https://investors.fmc.com
WE Free: 866-813-9403
Other internationals: +44 204-525-0658
Access code: 609404
FMC Corporation is a global agricultural science company dedicated to helping growers produce food, feed, fiber and fuel for a growing global population while adapting to a changing environment. FMC’s innovative crop protection solutions – including organics, crop nutrition, digital and precision agriculture – enable growers, crop advisors and turf and pest management professionals to meet their toughest challenges economically while protecting the environment. With approximately 6,400 employees in more than 100 locations worldwide, FMC is committed to discovering new herbicide, insecticide and fungicide active ingredients, product formulations and pioneering technologies that are always 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 the control of insect pests 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 a proprietary biological production platform based on yeast fermentation. We have assembled a dedicated, world-class team with skills in metabolic engineering, fermentation, chemistry and process development. BioPhero was founded in 2016 by Dr. Irina Borodin as a technological spin-out of the Technical University of Denmark and started its activities 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 words or phrases such as “probably will result”, “believes that”, “expects”, “expects”, “should”, “could”, “may”, “will continue to”, “believe”, “believe”, “anticipate”, “predict”, “anticipate”, “estimate”, “project”, “potential”, “intend” or expressions similar identifying “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including the negative form of such words and phrases. These forward-looking statements are based on management’s current beliefs and assumptions regarding future events, future business conditions and the company’s prospects based on information currently available.These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. , levels of activity, performance or achievements expressed or implied by any forward-looking statement. Although BioPhero has achieved 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 may be affected by the risks inherent in operating a business of this nature. BioPhero ApS products and technologies have not yet been widely implemented, and therefore our statements regarding the future, including potential revenue opportunities, are subject to uncertainties related to development, registration , to the production and marketing of pheromones through the use of BioPhero Production Technology. The continued development of BioPhero’s products requires substantial technical, financial and human resources, and the successful development and commercialization of BioPhero’s product line cannot be assured. In the event that material assumptions regarding the BioPhero platform do not materialize as expected, we may suffer an adverse impact on our business and financial condition and we may not fully realize what we believe to be the potential of the BioPhero business. . Additional factors include, among others, the risk factors and other cautionary statements included in FMC’s 2021 Form 10-K as well as other SEC filings and public disclosures. Additionally, investors are cautioned to interpret many of these factors as exacerbated by the many ongoing negative effects of the COVID-19 pandemic. FMC cautions readers not to place undue reliance on these 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 obligation, to update or revise forward-looking statements to reflect events or circumstances occurring after the date on which they were made, except as otherwise required by law.
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SOURCE FMC Corporation