Origin Agritech Announces Revolutionary Gene Editing Breakthrough, Featured in Top Science Journal Nature

Rhea-AI Summary

Origin Agritech (NASDAQ: SEED) announced a significant breakthrough in maize gene editing, published in the journal Nature. The study demonstrates the successful use of maize induction line gene editing technology to improve leaf angle in maize inbred lines, potentially enhancing yield at high planting densities. Origin, with China Agricultural University, created the world's first efficient genetic transformation system for maize induction line Hi3, significantly reducing the time required compared to traditional methods. The commercialization of this technology in China is expected within 1-2 years, with a market potential exceeding $1.5 billion. This advancement could revolutionize maize cultivation, improve crop performance, and support sustainable farming.

Positive

• Breakthrough in maize gene editing published in Nature.
• Successful improvement of maize leaf angle using gene editing.
• Creation of an efficient genetic transformation system for maize Hi3.
• Potential commercialization within 1-2 years.
• Market potential estimated at over $1.5 billion.
• Potential to significantly boost maize yields.
• Supports sustainable farming practices.
• Reduces breeding time by 3-4 years compared to traditional methods.

Negative

• No immediate revenue impact; commercialization expected in 1-2 years.
• Research and development costs may increase before commercialization.
• Dependence on regulatory approvals for commercialization.

Insights

Biotechnology Expert

From a biotechnology perspective, this breakthrough in gene editing using maize induction line technology is quite significant. Traditional breeding techniques in agriculture typically require multiple years of crossbreeding to achieve desired traits, often with the risk of linked genes that can bring unwanted characteristics. The new method developed by Origin Agritech allows for precise genetic improvements within a single year, which is a substantial time saving. Moreover, the ability to rapidly edit major maize inbred lines across various genetic backgrounds could accelerate the development of high-yield varieties. This could be particularly important in the context of global food security, where quicker development of resilient, high-yield crops is crucial. Additionally, the broad application of this technology could diversify crop traits, enhancing resistance to drought and lodging, thus promoting sustainable farming practices.

Market Research Analyst

From a market perspective, the commercial potential of this gene-editing technology is enormous. The ability to save 3-4 years in the breeding process could provide a competitive edge to Origin Agritech. With China accelerating the commercialization of gene editing traits and the issuance of biosafety certificates, Origin's gene-edited corn could hit the market within 1-2 years, as stated. The estimated market value of US$1.5 billion highlights the significant revenue opportunities. Furthermore, the publication in 'Nature,' a highly respected scientific journal, adds credibility and could positively influence investor confidence and market perception. The collaboration with China Agricultural University also underscores a strong academic-industry partnership, which could facilitate further innovations and developments. However, it is important for investors to monitor regulatory developments and potential market adoption rates to fully assess the long-term financial impact.

Financial Analyst

Financially, this breakthrough has the potential to drive substantial growth for Origin Agritech. The expected commercialization timeline of 1-2 years offers a near-term catalyst for revenue generation. The company's ability to pioneer this technology and establish a first-mover advantage in the commercial breeding market could lead to significant market share gains. The projected market for commercial breeding processes of US$1.5 billion also provides a clear indication of the revenue potential. However, investors should consider the inherent risks associated with the commercialization phase, including regulatory hurdles and the adoption rate by farmers. Additionally, while the scientific achievements are notable, the financial performance will also depend on how effectively Origin Agritech can scale its operations and manage production costs. Monitoring quarterly earnings and updates on the commercialization progress will be key for assessing the financial impact.

BEIJING, June 12, 2024 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), a leading Chinese agricultural technology company, today announced the publication of a groundbreaking research article in the prestigious scientific journal Nature, titled "Maize Smart Canopy Architecture Enhances Yield at High Densities." This study is the first to successfully achieve fixed-point improvement of leaf angle in maize inbred lines using maize induction line gene editing technology.

The article can be found by visiting https://www.nature.com/articles/s41586-024-07669-6.

Origin, through its subsidiary Hainan Aoyu Biotech Limited, cooperated with China Agricultural University and pioneered establishing the world's first efficient genetic transformation system for maize induction line Hi3. This innovative system enables the rapid editing of major maize inbred lines across various genetic backgrounds. By breaking the technical barrier of improving maize inbred lines through gene editing, this method allows for precise enhancements to the shape of maize inbred lines within a single year. Compared with traditional backcrossing and breeding techniques, Hi3 can save 3-4 years of time without the influence of linked genes.

China is accelerating the commercialization of gene editing traits and has approved gene editing biosafety certificates for corn, soybeans, and wheat. The commercialization of Origin's gene-editing corn is expected to begin in 1-2 years. The use of this gene editing technology has broad application space and huge commercial development value. According to Bill Deng, Origin's head of research, it is estimated that the market for the commercial breeding process of corn gene editing can reach more than 10 billion yuan (US$1.5 billion).

Dr. Gengchen Han, Chairman and CEO of Origin Agritech, stated, "Our collaboration with China Agricultural University and the publication of our research in Nature underscore Origin's commitment to advancing agricultural technology. This breakthrough can potentially revolutionize maize cultivation by significantly boosting yield through improved plant architecture."

The induction line genetic transformation system developed by Origin offers broad application prospects for the commercial development of gene-edited corn. This technology is poised to play a critical role in future agricultural innovations, providing a powerful tool for enhancing crop performance and sustainability.

"At present, we have obtained more than ten maize gene editing induction lines that have been improved for different traits, including reducing the angle between the upper leaves of maize ears, enhancing maize drought resistance, enhancing maize lodging resistance, extending maize growth period, and stacking multiple composite traits," continued Dr. Han. "In the future, we can quickly carry out targeted improvement work for related target traits. More notably, our genetically modified hybrid will enter production trials this year."

"We are excited about the potential applications of this technology in commercial agriculture. By leveraging our genetic transformation system, we can accelerate the development of high-yield maize varieties, contributing to global food security and advancing sustainable farming practices," concluded Dr. Han.

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.

Forward-Looking Statements

This communication contains "forward-looking statements" as defined in the federal securities laws, including Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements address expected future business and financial performance and financial condition and contain words like "expect," "anticipate," "intend," "plan," "believe," "seek," "will," "would," "target," and similar expressions and variations. Forward-looking statements address matters that are uncertain. Forward-looking statements are not guarantees of future performance and are based on assumptions and expectations that may not be realized. They are based on management's current expectations, assumptions, estimates, and projections about the Company and the industry in which the Company operates but involve a number of risks and uncertainties, many of which are beyond the Company's control. Some of the important factors that could cause the Company's actual results to differ materially from those discussed in forward-looking statements are: failure to develop and market new products and optimally manage product life cycles; ability to respond to market acceptance, rules, regulations and policies affecting our products; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and capital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; natural disasters and weather events and patterns; ability to protect and enforce the Company's intellectual property rights; and separation of underperforming or non-strategic assets or businesses. The Company undertakes no duty or obligation to publicly revise or update any forward-looking statements as a result of future developments, new information, or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure that such expectations will be correct. Actual results may differ materially from the anticipated results. You are urged to consider these factors carefully when evaluating the forward-looking statements contained herein. You are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.

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 breakthrough did Origin Agritech announce?

Origin Agritech announced a significant breakthrough in maize gene editing, improving leaf angle to enhance yield.

When was the breakthrough in maize gene editing published?

The breakthrough was published on June 12, 2024, in the journal Nature.

What is the potential market value of Origin Agritech's gene editing technology?

The market potential of Origin Agritech's gene editing technology is estimated to exceed $1.5 billion.

When will Origin Agritech's gene-edited corn be commercialized?

Commercialization of Origin Agritech's gene-edited corn is expected to begin within 1-2 years.

What is the significance of the Hi3 genetic transformation system?

The Hi3 system allows rapid editing of maize inbred lines, reducing breeding time by 3-4 years compared to traditional methods.

How does Origin Agritech's breakthrough support sustainable farming?

The breakthrough supports sustainable farming by enhancing crop performance and yield, contributing to global food security.