Origin Agritech Establishes Biotechnology Service Consortium to Accelerate Licensing and Commercialization of GMO and Gene Editing Technologies

Rhea-AI Summary

Origin Agritech (NASDAQ: SEED) has established the 'Origin Marker Biological Breeding Service Consortium' in partnership with China Golden Marker Biotechnology Co., This initiative aims to license Origin's GMO insect-resistant and herbicide-tolerant (IR/HT) traits and accelerate the application of its gene editing technology in breeding programs. The consortium will focus on:

• Commercializing the BBL2-2 GMO Maize Event
• Advancing gene editing for maize
• Innovating maize germplasm resources

China Golden Marker has invested 67 million yuan in a state-of-the-art molecular marker laboratory. The consortium has established cooperative relationships with dozens of breeding companies across China and is improving over 100 corn varieties in key corn-producing regions.

Positive

• Establishment of a consortium to accelerate licensing and commercialization of GMO and gene editing technologies
• Partnership with China Golden Marker Biotechnology Co., , enhancing technological capabilities
• Potential for broader adoption of Origin's GMO traits across China's agricultural regions
• Acceleration of product development timeline from 3-4 years to just one year using gene editing technology
• Expansion of royalty opportunities for new, high-performing maize varieties
• Cooperative relationships established with dozens of breeding companies across China

Negative

• None.

Insights

Agricultural Biotechnology Expert

The establishment of the Origin Marker Biological Breeding Service Consortium marks a significant advancement in agricultural biotechnology in China. By combining Origin Agritech's GMO and gene editing technologies with China Golden Marker's advanced laboratory capabilities, this partnership has the potential to revolutionize maize breeding and production.

Key points of impact:

• Accelerated commercialization of BBL2-2 GMO maize, which could lead to increased crop yields and reduced pesticide use
• Implementation of a groundbreaking gene editing system that dramatically shortens breeding timelines from 3-4 years to just one year
• Expansion of trait improvement capabilities, focusing on important characteristics like drought resistance and disease resilience
• Potential for significant royalty income from licensing these technologies to seed companies and research institutes across China

This consortium positions Origin Agritech at the forefront of agricultural innovation in China, potentially leading to increased market share and revenue streams. The collaboration with multiple breeding companies and the focus on key corn-producing regions suggests a strong potential for widespread adoption of these technologies, which could transform the Chinese maize industry.

Financial Analyst

This consortium represents a significant business opportunity for Origin Agritech, with potential for substantial revenue growth and market expansion. Key financial implications include:

• Diversification of revenue streams through licensing of GMO traits and gene editing technologies
• Potential for increased royalty income from newly developed maize varieties
• Accelerated product development cycle, potentially leading to faster time-to-market and earlier revenue realization
• Enhanced competitive positioning in the agricultural technology sector

The partnership with China Golden Marker, which has invested 67 million yuan in advanced laboratory facilities, also suggests a strong commitment to R&D without Origin bearing the full cost burden. This could lead to improved profit margins and return on investment.

While specific financial projections are not provided, the scale of the consortium's operations - processing over 1 million samples annually and collaborating with dozens of breeding companies - indicates significant market potential. Investors should monitor for future updates on licensing agreements and commercialization progress as indicators of the consortium's financial impact on Origin Agritech.

BEIJING, Oct. 21, 2024 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), a leading Chinese agricultural technology company, is pleased to announce the establishment of the "Origin Marker Biological Breeding Service Consortium" in partnership with China Golden Marker Biotechnology Co., Ltd. This consortium is designed to license Origin's GMO insect-resistant and herbicide-tolerant (IR/HT) traits to a wider range of industry players and to accelerate the application of Origin's gene editing technology in breeding programs. The signing ceremony for this new initiative took place at the 31st China Seed Industry Conference in Beijing.

The consortium represents a significant step in advancing the commercialization of Origin's cutting-edge GMO and gene editing technologies. Following the Company's receipt of a GMO safety certificate for its transgenic maize, BBL2-2, in May 2024, this consortium will play a key role in promoting the licensing of these GMO traits to seed companies and research institutes., providing a wider opportunity for broader adoption by more industrial players across China's key agricultural regions.

In addition, Origin Agritech's breakthrough gene editing technology, including the world's first efficient genetic transformation system for maize induction line Hi3, is central to the consortium's mission. This gene editing system rapidly improves key traits such as drought resistance, plant architecture, and disease resilience in maize, reducing the traditional breeding timeline from 3-4 years to just one. By integrating this technology into Origin's breeding programs and its partners, the consortium seeks to accelerate product development while expanding the royalty opportunities for new, high-performing maize varieties.

China Golden Marker Biotechnology Co., Ltd., a leading high-tech biotechnology company specializing in next-generation sequencing (NGS), gene chip detection, and molecular marker technology, plays a pivotal role in this consortium. China Golden Marker has invested 67 million yuan to establish a state-of-the-art molecular marker laboratory capable of processing over 1 million samples and generating over 1 billion SNP data points annually.

The consortium is currently advancing three key projects:

• Commercialization of the BBL2-2 GMO Maize Event: Promoting and seeking partnerships for the commercialization of the insect-resistant and herbicide-tolerant genetically modified BBL2-2 maize.
• Advancement of Gene Editing for Maize: Promoting the world's first maize-induced gene editing system, which can accurately improve maize leaf angle, drought resistance, and other traits within a year.
• Innovation in Maize Germplasm Resources: Utilizing the consortium's rich mutant library and molecular marker-assisted breeding techniques to drive innovation in maize germplasm resources. These efforts will support breeding companies and R&D teams in creating more diverse and resilient maize varieties.

The consortium has established cooperative relationships with dozens of breeding companies across China and is improving over 100 corn varieties. These varieties are planted in key corn-producing regions, including Donghua North, Huang Huai Hai, Northwest, and Southwest China.

Bill Deng, Head of Research at Origin Agritech, commented: "Origin Marker adheres to the concept of 'making breeding easier.' By leveraging modern biotechnology, we are committed to assisting the industry in breeding higher quality, high-yield, and resilient corn varieties with greater accuracy and efficiency. Our consortium will play a crucial role in advancing sustainable agriculture in China."

Weibin Yan, Chief Executive Officer of Origin Agritech, commented: "What matters most about this consortium is how it will significantly accelerate the commercialization of our GMO and gene editing technologies by a bigger team and accessibility to more research institutes and seed companies. By combining our groundbreaking innovations with the advanced laboratory capabilities of China Golden Marker, we are streamlining the path from lab to market. This partnership will enable us to bring our high-impact solutions to the agricultural industry faster than ever before."

About Origin Agritech Limited

Origin Agritech Limited, founded in 1997 and headquartered in Zhong-Guan-Cun (ZGC) Life Science Park in Beijing, is a leading Chinese agricultural technology company. In crop seed biotechnologies, Origin Agritech's phytase corn was the first transgenic corn to receive the Bio-Safety Certificate from China's Ministry of Agriculture. Over the years, Origin has established a robust biotechnology seed pipeline, including products with glyphosate tolerance and pest resistance (Bt) traits. For further information, please visit the Company's website at www.originagritech.com. The Company also maintains a Twitter account for updating investors on Company and industry developments which is https://x.com/origin_agritech.

For more information, please contact:
Origin Agritech Limited Contact:
Kate Lang (Mandarin/English)
Director of Investor Relations
Phone: +86 186-1839-3368
Email: bing.lang@originseed.com.cn

Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com

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SOURCE Origin Agritech Limited

FAQ

What is the purpose of Origin Agritech's new biotechnology service consortium?

The consortium aims to license Origin's GMO insect-resistant and herbicide-tolerant (IR/HT) traits to a wider range of industry players and accelerate the application of Origin's gene editing technology in breeding programs.

How much has China Golden Marker Biotechnology invested in the consortium?

China Golden Marker Biotechnology has invested 67 million yuan to establish a state-of-the-art molecular marker laboratory for the consortium.

What are the three key projects the Origin Agritech consortium is advancing?

The consortium is advancing the commercialization of the BBL2-2 GMO Maize Event, the advancement of gene editing for maize, and innovation in maize germplasm resources.

How many corn varieties is the Origin Agritech consortium (SEED) improving?

The consortium is improving over 100 corn varieties planted in key corn-producing regions of China.