Bioceres Crop Solutions Announces Brazil’s Approval of New Generation Bio-Insecticide

Rhea-AI Summary

Bioceres Crop Solutions Corp. (NASDAQ: BIOX) received approval from Brazil’s Ministry of Agriculture for three new bio-insecticidal/nematicidal solutions derived from inactivated cells of their Burkholderia platform. These products offer enhanced effectiveness, precision, and cost-competitiveness compared to chemical alternatives, marking a significant milestone in the Brazilian market. With a rapidly growing bio-control sector, this approval paves the way for future product launches and strengthens Bioceres' position in the global market.

Positive

• Approval of new bio-insecticidal/nematicidal solutions in Brazil by the Ministry of Agriculture opens up a significant market for Bioceres Crop Solutions Corp.

• Products derived from inactivated Burkholderia cells offer enhanced effectiveness, precision, and cost-competitiveness compared to chemical alternatives, providing a competitive advantage in the market.

• Brazil's bio-control sector is rapidly growing, with bio-insecticides and bio-nematicides representing a substantial portion of the country's total insecticide and nematicide market, estimated at $5.5 billion.

• This approval enables the commercialization of Burkholderia-derived products in Brazil and sets the stage for future product launches, strengthening Bioceres' presence in the global market.

Negative

• None.

Insights

Agricultural Biotechnology Expert

The approval of Bioceres Crop Solutions' bio-insecticidal and bio-nematicidal products by Brazil's MAPA represents a noteworthy development in the agricultural biotechnology landscape. The utilization of inactivated microorganisms, such as those derived from the Burkholderia platform, signifies a paradigm shift towards sustainable crop protection. These bio-control agents offer a compelling alternative to traditional chemical pesticides due to their heightened effectiveness, longer shelf-life and reduced environmental impact. With a growing global focus on eco-friendly agricultural practices, Bioceres' expansion into the Brazilian market is timely. As the largest individual bio-control market by 2030, Brazil's adoption of these advanced solutions could set a precedent for other countries, influencing international regulatory stances and accelerating the market shift towards biological crop protection solutions. Given the substantial market size and high growth rate for bio-insecticides and bio-nematicides in Brazil, investors might see potential in Bioceres' strategic positioning within this promising niche.

Financial Analyst

Focusing on the financial implications, the approval of Bioceres Crop Solutions' new bio-insecticides in Brazil is poised to be a catalyst for revenue growth. The bio-control market in Brazil, part of a $5.5 billion insecticide and nematicide industry, has been expanding rapidly, with a 44% annual growth rate. Bioceres' entry into this high-growth market, where bio-controls make up 11% of the total market, could be a significant revenue driver, particularly as the company reports ten-fold growth in the bio-stimulants segment post its acquisition of Marrone Bio Innovations. The ability to offer cost-competitive alternatives to chemical solutions, potentially replacing costlier insecticidal treatments, aligns with economic incentives for farmers and should facilitate market penetration. Investors should monitor the commercial rollout and adoption rates of these products to gauge the financial return of this regulatory milestone.

Sustainable Investment Analyst

From a sustainable investing perspective, Bioceres' introduction of a new generation bio-insecticide in Brazil is emblematic of the larger trend towards environmentally responsible agriculture. This move aligns with ESG (Environmental, Social, Governance) criteria, attracting investors interested in sustainable practices. The potential to replace existing chemical pesticides with biological alternatives addresses a key environmental issue in agriculture, reducing chemical runoff and enhancing soil health. As investors increasingly factor ESG considerations into their investment decisions, companies like Bioceres that are on the forefront of sustainable innovation may benefit from enhanced investor interest and capital inflow. Therefore, this approval could signal not just a commercial opportunity, but also a strategic positioning that could bolster the company's sustainability profile in the eyes of ESG-focused investors.

LONDRINA, Brazil--(BUSINESS WIRE)-- Bioceres Crop Solutions Corp. (NASDAQ: BIOX), announced today the approval by Brazil’s Ministry of Agriculture and Livestock (MAPA- Ministério da Agricultura e Pecuária) of three new bio-insecticidal/bio-nematicidal solutions derived from inactivated cells of the company’s proprietary Burkholderia platform.

The approval represents a significant regulatory milestone in the Brazilian market, marking the first endorsement of biological products formulated from fully inactivated microorganisms. Bioceres’ most advanced bio-control solutions leverage the metabolites of inactivated microorganisms, resulting in products that demonstrate heightened effectiveness, precision, shelf-life, and formulation stability, as well as greater consistency in their mode of action compared to live microbes. Moreover, non-living bacteria-based products can be formulated with increased potency and at much lower costs, nearing cost parity to less favorable present-day chemical alternatives.

Bioceres products based on Burkholderia-derived metabolites were first registered in the United States in 2014 and have since been commercialized in Mexico, Peru, Chile, Turkey, and parts of Africa. In the United States alone, they are used as nematicidal and insecticidal seed treatment on more than 4 million hectares (>10 million acres) of corn, cotton and soybeans, effectively replacing abamectin in seed treatments, while also boosting the control of soil-dwelling insect pests that are typically controlled by neonicotinoids, pyrethroids, and organophosphates.

Brazil is the first bio-control market in the world with significant use in row crops and poised to become the largest individual bio-control market by 2030. Bio-insecticides and bio-nematicides currently represent approximately 11% of the country’s total insecticide and nematicide market, estimated at $5.5 billion, and have been growing at an annual average rate of 44% for the past five years. This approval enables the commercialization of Burkholderia-derived products in the country and opens the door for future related product launches. Bioceres’ bio-control solutions are commercialized in Brazil under the Rizobacter brand, as well as other brands used by third party licensees.

"This approval is a much-awaited milestone for our near-term growth plans in Brazil and, because of the global relevance of this market, for our company in general. Our 2022 acquisition of Marrone Bio Innovations — now ProFarm — was predicated mostly on two of its platforms: lignosulfonate-based bio-stimulants and inactivated-microbes (metabolites) for bio-control purposes. On bio-stimulants, we have grown ten-fold in Brazil since our acquisition. On the bio-control opportunity, we were on hold until today. This initial approval will allow us to move forward with in-furrow and foliar applications, in a first stage, and with seed treatment solutions, in a second stage. To put things into perspective, soybean seeds in Brazil are treated today with insecticidal solutions that cost around $15 per bag ($22.5 per hectare), that could be replaced very competitively with this new family of biologicals," said Federico Trucco, CEO of Bioceres Crop Solutions.

About Bioceres Crop Solutions Corp.

Bioceres Crop Solutions Corp. (NASDAQ: BIOX) is a leader in the development and commercialization of productivity solutions designed to regenerate agricultural ecosystems while making crops more resilient to climate change. To do this, Bioceres’ solutions create economic incentives for farmers and other stakeholders to adopt environmentally friendlier production practices. The Company has a unique biotech platform with high-impact, patented technologies for seeds and microbial ag-inputs, as well as next generation crop nutrition and protection solutions. Through its HB4 program, the Company is bringing digital solutions to support growers’ decisions and provide end-to-end traceability for production outputs. For more information, visit here.

Forward-looking statements

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Bioceres Crop Solutions

Paula Savanti

Head of Investor Relations

investorrelations@biocerescrops.com

Source: Bioceres Crop Solutions Corp.