Origin Agritech Comments on Recent Regulatory Developments in China and Updates Shareholders on its Pipeline of Traits

Rhea-AI Summary

Origin Agritech Ltd. (NASDAQ: SEED) has provided an update on the commercialization of GMO seeds in China, following a significant statement from the Central Economic Work Conference. The government plans to industrialize biotech breeding to enhance food security. Origin is prepared to supply various GMO corn and soybean seeds aimed at increasing agricultural productivity. The company is on track with several seed traits in different stages of the approval process, including its GMO Phytase Corn, which is awaiting variety approval. Chairman Dr. Gengchen Han highlights the potential for a lucrative market opportunity amid this transformation.

Positive

• Government's commitment to industrialize biotech breeding enhances market prospects.
• Origin boasts a strong pipeline of GMO traits nearing commercialization.
• Company positioned as a key player in a multi-billion-dollar market.

Negative

• Certain GMO traits await Bio-safety Certificate approvals, indicating potential delays.
• Continued reliance on regulatory approval processes poses risks to timelines.

BEIJING, Dec. 22, 2020 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), an agriculture technology company, today is updating shareholders on recent developments out of China regarding the path to GMO commercialization in the country and also on the status of the approval process for its different seed traits.

Last Friday, December 18^th, in an historic statement out of the Central Economic Work Conference, an annual gathering of top leaders and policymakers that plot the country's economic course for the following year, top CCP leaders said that they will industrialize biotech breeding as a part of a campaign to improve food security. Origin Agritech commends the government on this move toward GMO positive and stands by ready, as one of the top GMO seed companies in China, to rise to the challenge of supplying farmers with outstanding GMO corn and soybean seeds to facilitate this huge transformation of agriculture in China. These GMO seeds were developed with different traits to increase yields, reduce the need for insecticides, increase herbicide tolerance, salinity tolerance and to make the plants drought tolerant.

The following is a list of Origin Agritech's various corn and soybean traits and where they stand in the approval process:

1. GMO Phytase Corn. The world's first GMO output trait received a Bio-safety Certificate in 1999. Six GMO Phytase elite commercial corn hybrids have completed production trials and are waiting for variety approval.
2. An herbicide tolerance corn. Status: Waiting for approval of Bio-safety Certificate; more than 20 elite commercial hybrids with GT traits in the production trials.
3. A double stack of insect resistance and herbicide tolerance corn--First Generation. Status: Waiting for the approval of Bio-safety Certificate; more than 20 elite commercial hybrids with Bt/Gt traits in the production trials.
4. A double stack of insect resistance and herbicide tolerance corn--Second Generation. Status: in the middle test.
5. An herbicide tolerance soybean. Status: Approaching middle test.
6. A salinity tolerance and drought tolerance and water-saving soybean. Status: Approaching middle test.

"Origin Agritech is nearing the end of an epic journey preparing for the commercialization of GMO seeds in China, one which spanned many years, cost tens of millions of dollars and had contributions from many brilliant scientists," said Dr. Gengchen Han, Origin's Chairman and Chief Executive Officer. "We now are positioned as one of only several companies that has the potential to capitalize on this multi-billion-dollar market opportunity, and we look forward to improving food security for the country in the process."

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: http://www.originseed.com.cn or http://www.originseed.com.cn/en/. The company also maintains a twitter account for updating investors on company and industry developments, which is @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 which 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, or 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 you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.

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SOURCE Origin Agritech Limited

FAQ

What recent developments has Origin Agritech announced regarding GMO commercialization?

Origin Agritech updated shareholders on the government's plan to industrialize biotech breeding in China, enhancing opportunities for GMO seeds.

What is the status of Origin Agritech's GMO seed traits?

Various GMO traits are at different stages, with some awaiting Bio-safety Certificate approvals while others are in production trials.

How does the Central Economic Work Conference impact Origin Agritech?

The conference's emphasis on biotech breeding supports Origin's efforts to commercialize GMO seeds and improve food security in China.

What is the significance of the GMO Phytase Corn for Origin Agritech?

The GMO Phytase Corn, which received the world's first Bio-safety Certificate in 1999, is awaiting variety approval and is crucial for the company's product lineup.

How is Origin Agritech positioned in the market?

Origin Agritech is among the few companies poised to capitalize on the burgeoning market for GMO seeds in China, aiming to address food security challenges.