Origin Agritech Receives GMO Safety Certificate for its Triple Stack Maize

Rhea-AI Summary

Origin Agritech (NASDAQ: SEED) has received a GMO safety certificate for its transgenic maize, BBL2-2, containing two insect-resistant genes and one herbicide-tolerance gene. The certification marks a significant milestone for the company and the agricultural sector, allowing for the commercial rollout of BBL2-2. This new product is expected to enhance agricultural productivity, sustainability, and pest management, setting a new standard in sustainable agriculture.

Positive

• The GMO safety certificate for BBL2-2 signals a breakthrough in genetic innovation for Origin Agritech, positioning the company as a leader in agricultural biotechnology.

• The commercial launch of BBL2-2 is anticipated to boost agricultural productivity and sustainability by providing farmers with effective pest management tools and reducing the environmental impact of agriculture.

• Origin Agritech's development of a high-yield corn inbred line through gene editing techniques showcases the company's commitment to innovation and efficiency in agriculture, with a significant increase in yield potential over traditional corn varieties.

Negative

• None.

Insights

Agricultural Biotechnology Expert

The safety certification of Origin Agritech's BBL2-2 maize represents a significant breakthrough in the field of agricultural biotechnology. The maize's genetic makeup, which includes two genes for insect resistance and one for herbicide tolerance, could substantially reduce crop losses due to pests and lower the reliance on chemical pest control measures. The introduction of BBL2-2 could catalyze a shift towards more sustainable agricultural practices by promoting reduced use of pesticides and herbicides, which are known to have negative effects on the environment. The potential yield improvements and environmental benefits align with global efforts to increase agricultural sustainability and productivity in the face of a growing population and climate change challenges. The commercial success of BBL2-2 could set a precedent for future genetically modified crops in China and potentially influence global markets. Farmers may benefit from increased crop resilience and yields, which could translate into economic gains. However, the acceptance of GMO crops varies globally and the company's international expansion might face regulatory and public perception hurdles.

Financial Analyst

From a financial perspective, the GMO safety certificate for Origin Agritech's triple stack maize is likely to have positive implications for the company's revenue growth and market share. The commercialization of BBL2-2 could open up new revenue streams and provide competitive advantages in terms of product differentiation. As the company prepares for the commercial rollout, investors might anticipate increased capital expenditures aimed at scaling up production and distribution channels. The long-term success of BBL2-2 will hinge on farmer adoption rates and the performance of the crop in real-world conditions. Additionally, the company's progress in gene editing and the development of a high-yield corn inbred line suggest a robust pipeline of innovative products that could foster long-term growth. Nevertheless, the company faces inherent risks associated with agricultural biotechnology, such as potential pushback against GMO crops and the need to continuously invest in R&D to maintain its technological edge.

Commercial Rollout to Begin Shortly

BEIJING, May 9, 2024 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), a leading Chinese agricultural technology company, today announced the issuance of a GMO safety certificate for its transgenic maize, BBL2-2, marking a significant milestone for the Company and the agricultural sector, heralding a new era in crop innovation.

The newly certified BBL2-2 maize contains two insect-resistant genes, Cry1Ab and Cry3Bb, and one herbicide-tolerance gene, Cp4-epsps. This genetic composition makes the maize resistant to various lepidopteran pests such as corn borer, cotton bollworm, armyworm. BBL2-2 is a product with substantial commercial value and extensive application potential.

The certification of BBL2-2 confirms its adherence to stringent safety standards and paves the way for its commercial launch. The introduction of BBL2-2 is expected to significantly enhance agricultural productivity and sustainability, providing a powerful tool for farmers to manage pests more effectively and reduce the environmental impact of agriculture.

Dr. Gengchen Han, Chairman and CEO of Origin Agritech, commented, "Receiving this GMO safety certificate is a transformative moment for Origin Agritech and agricultural biotechnology in China. BBL2-2 exemplifies our capabilities in genetic innovation and sets a new standard in sustainable agriculture. We are eager to lead the commercialization of this technology, which promises significant improvements in crop resilience and yield."

In addition to its work on BBL2-2, Origin Agritech continues to advance its agricultural technology portfolio with significant progress in gene editing. Recently, the Company developed a high-yield corn inbred line through precise gene editing techniques, which has shown a yield increase of more than 50% over traditional corn in extensive multilocational field trials. The gene-edited event is now in the process of agricultural biosafety assessment. This development is expected to greatly enhance the productivity and cost-effectiveness of corn production, reinforcing Origin's commitment to sustainable and efficient agriculture.

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