BioHarvest Sciences Signs $1.2M CDMO Stage 2 Contract for the Development of a Rare Fragrance Using Its Proprietary Botanical Synthesis Platform

BioHarvest Sciences (NASDAQ: BHST) signed a $1.2 million Stage 2 CDMO contract to develop a rare fragrance raw material using its Botanical Synthesis platform.

Rhea-AI Summary

BioHarvest Sciences (NASDAQ: BHST) signed a $1.2 million Stage 2 CDMO contract to develop a rare fragrance raw material using its Botanical Synthesis platform. The deal follows Stage 1 completion in March 2026, when a stable cell bank containing rare molecules was created.

Stage 2, lasting about six to nine months, aims to produce enough material for commercial trials. BioHarvest keeps 20% ownership of successful compositions and is positioned to earn manufacturing revenue and future royalties, targeting production in the second half of 2027.

Positive

• $1.2 million Stage 2 CDMO contract for rare fragrance development
• Stage 1 completed with stable cell bank of rare molecule composition
• BioHarvest retains 20% ownership of successfully developed compositions
• Additional manufacturing revenue plus long-term royalty-driven model
• Target readiness for production in second half of 2027
• Access to premium fragrance segment within a $58.9 billion industry

Negative

• Stage 2 timeline of six to nine months before commercial trial material
• Commercial production targeted only in the second half of 2027
• Contract details and plant compounds remain undisclosed under NDA

Argus May 12 session

+4.07% close to close Open Argus

Details

News Market Reaction – BHST

On May 12, the day this news came out, BHST closed 4.07% above the previous close.

Data tracked by StockTitan Argus for the May 12 session.

Key Figures

Stage 2 contract value: $1.2 million Stage 2 timeline: six to nine months Ownership of compositions: 20% +3 more

Stage 2 contract value

$1.2 million

CDMO Stage 2 rare fragrance development contract

Stage 2 timeline

six to nine months

Expected duration to produce fragrance raw material for commercial trials

Ownership of compositions

20%

BioHarvest retained stake in successfully developed compositions

Production readiness

second half of 2027

Target timing to be ready for production and commercialization

Premium fragrance segment size

$23 billion

Estimated premium fragrance market opportunity

Global scents and fragrances market

$58.9 billion

Total industry size cited in the article

Historical Context

5 past events · Latest: Apr 30

5 events

1. Apr 30

   Earnings date notice

   24h Move

   -0.7%

   Scheduled Q1 2026 earnings release and conference call announcement.

2. Apr 29

   Leadership transition

   24h Move

   -1.2%

   Co-founder Dr. Zaki Rakib assumed CEO role to drive CDMO and D2C.

3. Mar 31

   Earnings results

   24h Move

   -0.7%

   Reported FY2025 $34.5M revenue, 37% YoY growth, and 2026 guidance.

4. Mar 31

   Fragrance Stage 1

   24h Move

   +1.6%

   Completed Stage 1 stable cell culture for rare fragrance plant with 20% ownership.

5. Mar 26

   VINIA brand milestone

   24h Move

   -0.9%

   Announced VINIA as No.1 resveratrol polyphenol brand in the United States.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

cdmo, botanical synthesis, cell bank

3 terms

cdmo technical

"BioHarvest Sciences Inc. (NASDAQ: BHST) ... announced that its CDMO division has signed a $1.2 million-dollar Stage 2 contract"

A contract development and manufacturing organization (CDMO) is a company that provides specialized services to help develop and produce pharmaceutical products for other businesses. Think of it as a contract factory that takes a company's recipe and makes the product on their behalf. For investors, CDMOs are important because they support the growth of pharmaceutical companies and can be key partners in bringing new medicines to market.

botanical synthesis technical

"a leader in Botanical Synthesis technology and sustainable plant-based molecule development"

Botanical synthesis is the lab-based creation or replication of plant-derived compounds, either by chemically building the molecules or by using engineered organisms to produce them, like recreating a recipe in a factory instead of harvesting from a garden. For investors it matters because it can lower costs, secure supply, protect patents, and affect regulatory review and market access for products that rely on consistent, scalable plant ingredients.

cell bank medical

"completion of Stage 1 in March 2026, where a stable cell bank of a unique cell culture-based composition"

A cell bank is a carefully tested, long-term storage of living cells used to make biological products or run laboratory tests; think of it as a frozen library of identical starter material that manufacturers return to when they need to produce a medicine or repeat an experiment. Investors care because the quality, consistency and regulatory approval of a cell bank affect a drugmaker’s ability to scale production, meet safety standards and avoid costly delays—similar to how reliable ingredients matter for consistent food production.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Source plant is widely regarded as one of the most valuable fragrance raw materials in the world

Stage 2 contract follows successful Stage 1 completion in March 2026

Vancouver, British Columbia and Rehovot, Israel--(Newsfile Corp. - May 12, 2026) - BioHarvest Sciences Inc. (NASDAQ: BHST) (FSE: 8MV0) ("BioHarvest" or the "Company"), a leader in Botanical Synthesis technology and sustainable plant-based molecule development, today announced that its CDMO division has signed a $1.2 million-dollar Stage 2 contract as part of a multi-stage development program for a rare scent-producing plant used in the global fragrance industry. This scent is widely regarded as one of the most valuable fragrance raw materials in the world, with premium grades commanding prices exceeding tens of thousands of U.S. dollars per kilogram and demand growing across the Middle East, Asia, and luxury Western perfume markets.

This contract is subject to a non-disclosure agreement which prevents the disclosure of the other party and the targeted plant compounds, and follows completion of Stage 1 in March 2026, where a stable cell bank of a unique cell culture-based composition containing rare molecules was produced. At the end of Stage 2, which will take approximately six to nine months, BioHarvest will have produced enough of the fragrance raw material for the purpose of conducting commercial trials.

Under the terms of the Stage 2 agreement with this customer, BioHarvest retains 20% ownership of the compositions successfully developed and would also earn a second source of revenue as the manufacturing entity, creating a long-term, royalty-driven economic model as the cell bank under development advances toward commercialization.

CEO of BioHarvest Sciences Dr. Zaki Rakib, commented, "A Stage 2 contract means that we have crossed the tallest technological hurdle of this unprecedented research and development journey. It also means we can be ready for production in the second half of 2027, in tandem with an increase in manufacturing capacity due to the planned commissioning of a new production facility. This milestone also brings BioHarvest closer to entering the growing premium fragrance segment, estimated to represent a $23 billion-dollar market opportunity within the global $58.9 billion scents and fragrances industry¹."

The Major Principal of the partner firm, which is a prominent United Arab Emirates-based investment group, commented, "We have gladly awarded BioHarvest this contract after being highly encouraged by the successful completion of Stage 1. Soon, we will be initiating our commercialization program designed to bring the product to market in the second half of 2027."

Dr. Rakib added, "This contract is expected to serve as a catalyst for engaging additional potential customers in other future fragrance programs using BioHarvest's Botanical Synthesis platform. We believe that the unique scalable capability of our technology significantly expands the addressable market opportunity for our CDMO division and strengthens our long-term royalty-driven growth strategy."

Sources:

(1) Grand View Research - Fragrance Market Report (2026-2033)
https://www.grandviewresearch.com/industry-analysis/fragrances-market

About BioHarvest
BioHarvest (NASDAQ: BHST) (FSE: 8MV) is a leader in Botanical Synthesis, leveraging its patented technology platform to grow plant-based compounds, without the need to grow the underlying plant. BioHarvest is leveraging its botanical synthesis technology to develop the next generation of science-based and clinically proven therapeutic solutions within two major business verticals; as a contract development and manufacturing organization (CDMO) on behalf of customers seeking novel plant-based compounds, and as a creator of proprietary nutraceutical health and wellness products, which includes dietary supplements. To learn more, please visit www.bioharvest.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of applicable securities laws. These statements are based on management's current expectations, beliefs, and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. For the CDMO Services Business Unit, there is no assurance of additional future contracts, and readers are cautioned that increased revenue is not necessarily an increase in net income or profitability as costs will likely increase as well. There is no assurance that signed research agreements will proceed past a contracted stage, or that a developed molecule or compound will be commercialized or will generate royalties to the Company. Successful commercialization of any compound developed will be subject to consumer preferences, advertising budgets and other factors affecting market acceptance of new products which are uncertain and cannot be assured. Launching new products is subject to risks and uncertainties including the risk that the market will not accept the product or that government approvals required for sale or import of the products will not be obtained. There is never an assurance that any product set will successfully disrupt established product categories. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not undertake any obligation to update forward-looking statements except as required by applicable law. Additional information is contained in the Company's SEC filings, available at http://www.sec.gov.

BioHarvest Company Contact:

Dave Ryan, VP Investor Relations
(604) 622-1186
info@bioharvest.com

Investor Relations Contact:

Chuck Padala, Managing Director
LifeSci Advisors
chuck@lifesciadvisors.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/297104

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the $1.2 million CDMO Stage 2 contract BioHarvest Sciences (NASDAQ: BHST) announced on May 12, 2026?

BioHarvest Sciences announced a $1.2 million Stage 2 CDMO contract to develop a rare fragrance raw material. According to BioHarvest, this stage builds on Stage 1 and advances a multi-stage program for a high-value scent-producing plant.

How long will Stage 2 of BioHarvest Sciences (BHST) rare fragrance development project take?

Stage 2 is expected to take approximately six to nine months. According to BioHarvest, this phase should yield enough fragrance raw material to run commercial trials, moving the project closer to potential large-scale manufacturing and royalty revenues.

What ownership and revenue rights does BioHarvest Sciences (BHST) retain in the Stage 2 fragrance contract?

BioHarvest retains 20% ownership of compositions successfully developed under the Stage 2 contract. According to BioHarvest, it also expects manufacturing revenue and a royalty-driven economic model as the cell bank progresses toward commercialization.

When could BioHarvest Sciences (BHST) begin production of the rare fragrance material?

BioHarvest targets being ready for production in the second half of 2027. According to BioHarvest, this aligns with a planned increase in manufacturing capacity from commissioning a new production facility to support the fragrance program.

Who is partnering with BioHarvest Sciences (BHST) on the rare fragrance CDMO contract?

The partner is a prominent United Arab Emirates-based investment group. According to the partner’s principal, they awarded BioHarvest the contract after Stage 1 success and plan to initiate a commercialization program targeting market launch in the second half of 2027.

How does the rare fragrance contract fit into BioHarvest Sciences (BHST) growth strategy?

The contract is intended to support a long-term, royalty-driven growth model for BioHarvest’s CDMO division. According to BioHarvest, success here may help engage additional fragrance customers and expand access to the premium fragrance segment.