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MustGrow Biologics and Bayer Sign Commercial License Agreement for Biocontrol Technologies in Europe, Middle East and Africa
Bayer's commercial license covers soil applications of MustGrow's mustard-based biocontrol techno...
About this update from Mustgrow Biologics Corp.
[{"type":"text","content":"MustGrow Biologics and Bayer Sign Commercial License Agreement for Biocontrol Technologies in Europe, Middle East and AfricaBayer's commercial license covers soil applications of MustGrow's mustard-based biocontrol technologies in Europe, Middle East and Africa. MustGrow to receive upfront license fees and milestone payments, royalties, and manufacturing sales linked to development and commercial achievements. Saskatoon, Saskatchewan--(Newsfile Corp. - December 11, 2023) - MustGrow Biologics Corp. (TSXV: MGRO) (OTCQB: MGROF) (FSE: 0C0) (\"MustGrow\") is pleased to announce the signing of a collaboration agreement (the \"Agreement\") with Bayer AG (FSE: BAYN) (\"Bayer\") covering soil applications of MustGrow's mustard-based biocontrol technologies in Europe, Middle East and Africa, excluding home and garden, turf and ornamental applications. Under the terms of the Agreement, MustGrow will receive an initial upfront payment as well as additional payments linked to the achievement of certain business milestones. Upon the commencement of commercial sales, MustGrow will also be entitled to fees from royalties and manufacturing sales. Additionally, Bayer will be responsible for regulatory and market development work (the \"Development Work\") in the respective field of use necessary to commercialize MustGrow's mustard-based biocontrol technologies, including the development of the formulated product, conducting relevant regulatory data studies for regulatory submissions, filing regulatory submissions, registration with relevant regulatory authorities, and support, marketing, and commercial sales activities. MustGrow anticipates that the value of the upfront, milestone payments and Development Work could approximate USD $35 to $40 million over the next several years (not including additional fees from royalties and manufacturing sales).\"Biologicals are part of an exciting frontier that offers new solutions for the challenges that growers face across the world,\" said Benoit Hartmann, Head of Biologics for Bayer. \"We're committed to working with leading innovators like MustGrow to accelerate the development of innovative biological solutions that provide safe, sustainable options for farmers and are looking forward to continuing our work together.\"Pursuant to the Agreement, Bayer has also been granted a right-of-first-negotiation fo...