Cibus 2023 Field Trial Results Move Developed Traits Closer to Product Sales
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Insights
The field trial results for Cibus' HT1 and HT3 rice traits and the Pod Shatter Reduction (PSR) trait in canola are significant milestones in agricultural biotechnology. The confirmation that these traits perform well under commercial herbicide application rates is a critical validation step for Cibus' gene editing technology. The ability to integrate these traits into a variety of seed developers' product lines may lead to a diversification of the rice and canola markets, potentially affecting global supply chains. The introduction of these traits can lead to enhanced crop resilience and yield stability, which is particularly important in the context of global food security and climate change challenges.
Moreover, the potential market expansion into the US Mid-South and other geographies by 2025 for the rice traits, coupled with the expected launch of gene edited canola traits in North America, underscores the company's strategic growth initiatives. As these developments unfold, stakeholders should monitor the adoption rates of these traits by farmers and the subsequent impact on Cibus' market share and revenue streams.
The advancements reported by Cibus, Inc. in herbicide tolerance and pod shatter reduction traits are poised to disrupt the agricultural seeds market. The successful field trials and the integration of these traits into multiple seed developers' lines could catalyze a competitive edge for Cibus in the agricultural biotech industry. The strategic move to begin field scale demonstrations aligns with a go-to-market strategy that could accelerate adoption among growers.
From a market perspective, the introduction of these traits may influence commodity prices by potentially increasing crop yields and reducing losses due to pod shatter. Investors should consider the implications for companies within the agricultural supply chain, including chemical manufacturers, distributors and agribusiness conglomerates. The long-term impact on Cibus' stock will likely hinge on the commercial success of these traits and the company's ability to capitalize on first-mover advantages in gene-edited crop solutions.
The financial implications of Cibus' announcement are multifaceted. The transition from field trials to field scale demonstrations indicates a progression toward commercialization, which could lead to revenue growth. The company's ability to meet or exceed performance expectations suggests that Cibus' product offerings may be well-received in the market. Investors should consider the potential for Cibus to capture market share in the rice and canola sectors, as well as the broader impact on the agricultural biotech industry.
It is important to analyze the company's R&D expenditures, capital investments for scaling production and the pricing strategy for licensing its traits to seed developers. The timing of the first sales and the rate of market penetration will be critical in assessing the return on investment. Additionally, the company's financial health and the scalability of its technology platform will be key determinants in its ability to sustain growth and profitability in the long term.
- Cibus continues to confirm tolerance of HT1 and HT3 rice traits to commercial herbicide application rates in field trials and achievement of the Cibus Powered™ standard
- Following another successful season of field evaluation of HT1 and HT3 rice herbicide tolerance traits, Cibus to begin field scale demonstration in the US Mid-South in preparation for product launch
- Cibus canola Pod Shatter Reduction (PSR) trait continues to demonstrate a high level of pod shatter reduction in seed developer genetics and achievement of the Cibus Powered™ PSR standard
- Multiple canola/WOSR seed developers integrating the Cibus PSR trait into their product lines in preparation for first sales
SAN DIEGO, Jan. 17, 2024 (GLOBE NEWSWIRE) -- Cibus, Inc. (NASDAQ: CBUS), a leading agricultural technology company that develops and licenses plant traits to seed companies, today announced that the Company is moving forward in the next step of commercialization of its developed traits.
Rice – HT1 & HT3 traits – First transfer of customer seeds complete
2023 field trial results have confirmed that rice herbicide tolerance (HT) traits, known as HT1 and HT3, met or exceeded performance expectations when evaluated with proposed commercial herbicide application rates. This important step in commercial development has led to the first transfers of customer seeds containing the HT1 and HT3 traits. Additional transfers of both HT traits to seed developers are in progress and this will enable a broad offering of rice hybrids and varieties in the US and international markets in the coming years. Cibus expects to have field scale demonstrations of the HT rice traits in the US Mid-South in 2024 and expand to other geographies in 2025.
“The field results of both HT1 and HT3 rice traits continue to impress, and we’re excited to continue our work with seed developers, University extension workers, and rice growers around the globe, as we get one step closer to product launch,” said Dr. Jim Radtke, Senior Vice President, Product Development for Cibus.
“This is an exciting development for both Cibus and the rice industry,” added Norm Sissons, Senior Vice President, Seed & Traits. “Having not one, but two new HT rice traits coming to market soon will open up new options for weed control for rice growers and demonstrates Cibus’ commitment to rice innovation.”
Canola – Pod Shatter Reduction trait – Carrying commercial momentum into 2024
Cibus also reported that its canola Pod Shatter Reduction (PSR) trait in seed developer genetics performed well and on par with the best available in the industry. Concurrent with the positive field trial results, seed developer lines containing the PSR trait were transferred to multiple companies in 2023 and further transfers are planned in 2024. This important development continues to enable production and testing of seed developer PSR hybrids in 2024, leading to first hybrid sales as early as 2025. Meanwhile, Cibus expects the first field results of its PSR trait in WOSR in the United Kingdom later this year.
Industry leading PSR traits are still not broadly available in the canola/WOSR markets despite years of industry research. Cibus intends to change this by broadly licensing its PSR trait to canola/WOSR seed developers globally, and already has 10 seed developer’s genetics at various stages of gene editing.
"It’s exciting to be on the verge of launching the first gene edited canola trait in North America" said Denise Schmidt, Senior Director, Canola Business & Industry Affairs of Cibus. “Canola growers will have greater flexibility for managing their production and the Cibus Powered™ PSR trait in the seed brand they prefer.”
About the Cibus RTDS®-based High Throughput Breeding System
A key element of Cibus’ technology breakthrough is its High Throughput Breeding Process (referred to as the Trait Machine™ System). The Trait Machine process is a crop specific application of Cibus’ patented Rapid Trait Development System™ (RTDS®). The proprietary technologies in RTDS integrate crop specific cell biology platforms with a series of gene editing technologies to enable a system of end-to-end crop specific precision breeding. It is the core technology platform for Cibus’ Trait Machine: the first standardized end-to-end semi-automated crop specific gene editing system that directly edits a seed company’s elite germplasm. Each Trait Machine process requires a crop specific cell biology platform that enables Cibus to edit a single cell from a customers’ elite germplasm and grow that edited cell into a plant with the Cibus edits. Cibus has Trait Machine platforms developed for canola and rice and has already begun transferring their elite germplasm with Cibus edits back to customers.
The traits from Cibus’ RTDS-based High Throughput Breeding System are indistinguishable from traits developed using conventional breeding or from nature. RTDS does not use any foreign DNA or transgenes. Under the European Commission current proposals, it is expected that products from Cibus’ RTDS gene editing platform such as its pod shatter reduction trait and Sclerotinia resistance traits for Canola and Winter Oilseed Rape would be considered ‘Conventional-like'.
Cibus believes that RTDS and the Trait Machine process represent the technological breakthrough in plant breeding that is the ultimate promise of plant gene editing: “High Throughput Gene Editing Systems operating as an extension of seed company breeding programs.”
About Cibus
Cibus is a leader in Gene Edited Productivity traits that address critical productivity and sustainability challenges for farmers such as diseases and pests which the United Nations estimates cost the global economy approximately
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of applicable securities laws, including The Private Securities Litigation Reform Act of 1995. All statements, other than statements of present or historical fact included herein, including statements regarding Cibus’ operational and financial performance, Cibus’ strategy, future operations, prospects and plans, including the anticipated regulatory environment are forward-looking statements. Forward-looking statements may be identified by words such as “anticipate,” “believe,” “intend,” “expect,” “plan,” “scheduled,” “could,” “would” and “will,” or the negative of these and similar expressions.
These forward-looking statements are based on the current expectations and assumptions of Cibus’ management about future events, which are based on currently available information. These forward-looking statements are subject to numerous risks and uncertainties, many of which are difficult to predict and beyond the control of Cibus. Cibus’ actual results, level of activity, performance, or achievements could be materially different than those expressed, implied, or anticipated by forward-looking statements due to a variety of factors, including, but not limited to: changes in expected or existing competition; challenges to Cibus’ intellectual property protection and unexpected costs associated with defending intellectual property rights; increased or unanticipated time and resources required for Cibus’ platform or trait product development efforts; Cibus’ reliance on third parties in connection with its development activities; challenges associated with Cibus’ ability to effectively license its productivity traits and sustainable ingredient products; the risk that farmers do not recognize the value in germplasm containing Cibus’ traits or that farmers and processors fail to work effectively with crops containing Cibus’ traits; challenges that arise in respect of Cibus’ production of high-quality plants and seeds cost effectively on a large scale; Cibus’ need for additional funding to finance its activities and challenges in obtaining additional capital on acceptable terms, or at all; Cibus’ dependence on distributions from Cibus Global, LLC to pay taxes and cover its corporate and overhead expenses; regulatory developments that disfavor or impose significant burdens on gene-editing processes or products; Cibus’ ability to achieve commercial success; commodity prices and other market risks facing the agricultural sector; technological developments that could render Cibus’ technologies obsolete; changes in macroeconomic and market conditions, including inflation, supply chain constraints, and rising interest rates; dislocations in the capital markets and challenges in accessing liquidity and the impact of such liquidity challenges on Cibus’ ability to execute on its business plan; the Company's assessment of the period of time through which its financial resources will be adequate to support operations; and other important factors discussed in “Risk Factors of Cibus, Inc.” filed as Exhibit 99.3 with Cibus’ Current Report on Form 8-K, which was filed with the Securities and Exchange Commission (the “SEC”) on June 1, 2023, as updated by the supplemental risk factors included in the Company's Current Reports on Form 8-K filed on October 18, 2023 and December 12, 2023, each as may be updated by any additional “Risk Factors” identified in Cibus’ subsequent reports on Forms 10-Q and 8-K filed with the SEC. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, actual results and plans could differ materially from those expressed in any forward-looking statements. Cibus’ assessment of the period of time through which its financial resources will be adequate to support its operations is a forward-looking statement and involves such risks and uncertainties. Accordingly, the Company could use its available capital resources sooner than it currently expects.
In addition, the forward-looking statements included in this press release represent Cibus’ views as of the date hereof. Cibus specifically disclaims any obligation to update such forward-looking statements in the future, except as required under applicable law. These forward-looking statements should not be relied upon as representing Cibus’ views as of any date subsequent to the date hereof.
Cibus Contacts:
Investor Relations
Karen Troeber
ktroeber@cibus.com
858-450-2636
Jeff Sonnek – ICR
jeff.sonnek@icrinc.com
Media Relations
Colin Sanford
colin@bioscribe.com
203-918-4347
FAQ
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