FuturaGene licenses its technology to China’s BioCentury Transgene to develop GM cotton

Genetic research and development company FuturaGene (AIM: FGN) said it has entered into a licensing agreement with Chinese seed producer BioCentury Transgene Co to provide genes for development in cotton plants.  Biocentury intends to develop cotton plants with improved and increased yield, fibre quality and salt tolerance  characteristics. FuturaGene and BioCentury will share revenues generated by sales of the newly developed cotton seeds.

Under the agreement FuturaGene will provide BioCentury with cell wall modification and salt tolerance genes.

According to FuturaGene the global cotton seed and trait market is valued at over US$850m per annum with China accounting for approximately 20% of the market.

FutureGene also recently licensed its drought tolerance technology to Bayer CropScience for utilisation in cotton worldwide. The genetic modification specialist's main focus is the development of its Cell Wall Modification and Abiotic Stress Tolerance technologies for the forestry and biopower crops, this deal is in-line with its strategy of ‘out-licensing’ its technologies in non-core crops, such as cotton.

"This important agreement fits well with our strategy - to focus on poplar and eucalyptus for the pulp and biomass markets whilst licensing our leading gene technologies to major operators for other crops”, FuturaGene CEO Dr Stanley Hirsch commented, “This strategy ensures we remain focused but also benefit from potential royalty revenues, without further capital outlay, when our technologies are used in additional crops."  http://www.proactiveinvestors.co.uk/companies/news/12556/futuragene-licenses-its-technology-to-chinas-biocentury-transgene-to-develop-gm-cotton-12556.html