Business
Strategic porcine collaboration in China
Strategic porcine collaboration in China.
About this update from Genus Plc
[{"type":"text","content":"\n \nRNS Number : 2614Z Genus PLC 16 May 2019 \n\n \n \nFor Immediate Release 16 May 2019\nGenus plc\n('Genus' or the 'Group')\n \nStrategic porcine collaboration in China\nwith Beijing Capital Agribusiness \nGenus plc (LSE: GNS), a leading global animal genetics company, is pleased to announce that it has entered into a strategic porcine collaboration in China, the world's largest pork market. The collaboration, which is with Beijing Capital Agribusiness Co. Ltd (\"BCA\"), is to research, develop, register and market in China elite PIC pigs that are resistant to Porcine Reproductive and Respiratory Syndrome virus (\"PRRSv\"). BCA has a leading Chinese animal protein genetics business and is owned by the Beijing Capital Agribusiness and Food Group (part of the Beijing Municipality), GLP-Youshan Fund and CITIC Agriculture (\"CITIC\"), a division of one of the largest state-owned conglomerates in China.\nUnder the terms of the strategic collaboration, Genus will receive:\n· upfront and milestone cash payments totalling US$20m subject to certain conditions being fulfilled;\n· between US$120m-$160m for the creation with BCA of a joint venture, including Genus's existing PIC operations in China, in several years' time after the required regulatory approval of PRRSv resistant pigs has been obtained in China; and\n· intellectual property royalties from the joint venture on sales in China of PRRSv resistant pigs.\nThe Collaboration\nThe initial phase of the collaboration, which is expected to take several years, focuses on the research, development and regulatory approval in China of PRRSv resistant pigs. BCA will establish and fund a specific, wholly owned corporate entity for the purposes of the collaboration which will be call...