Biotech Values

[DewDiligence]

Bayer, Evogene ink GM-wheat collaboration including equity investment:

http://finance.yahoo.com/news/Bayer-CropScience-and-Evogene-iw-682880563.html?x=0&.v=1

Bayer CropScience AG and Evogene Ltd. (TASE:EVGN - News) have entered into a five-year collaboration to accelerate the development and introduction of improved wheat varieties. Improvements will be pursued for wheat yield, drought tolerance, fertilizer use efficiency and certain other wheat traits utilizing a combination of advanced breeding and state of the art genetic modification methods. Bayer will have exclusive rights to commercialize in wheat the traits resulting from this collaboration.

…In a separate agreement, Bayer CropScience will make an equity investment of USD 12 million in Evogene at a price of approximately USD 7 per ordinary share.

…Evogene will receive approximately USD 20 million in the form of upfront fees and annual research payments over the term of the agreement. Furthermore, the company will receive development milestone payments and royalties on the commercialization of any resulting products. Further details of the agreement were not disclosed.

Evogene is the ag-bio offshoot of CGEN; it trades on the Tel Aviv Stock Exchange (TASE) and has agreements with several ag-bio companies including Monsanto, who is also a shareholder (#msg-31781519, #msg-23167298).