Exclusive Channel Collaboration Driven by Need to Meet Growing World Food Demand
Intrexon Proposes to Invest Up to $6.0 Million in AquaBounty
GERMANTOWN, Md. and MAYNARD, Mass., Feb. 15, 2013 (GLOBE NEWSWIRE) -- Intrexon Corporation, a synthetic biology company that utilizes its proprietary technologies to provide control over cellular function, and AquaBounty Technologies, Inc. (AIM:ABTX.L), a biotechnology company focused on enhancing the productivity in aquaculture, today announced the formation of an exclusive channel collaboration (ECC) to enhance productivity in aquaculture and develop products that decrease the time to market and address growing environmental issues.
As part of the ECC, Intrexon has proposed investing up to $6 million in AquaBounty to fund its operations and research. The investment is subject to shareholder approvals including the waiver of pre-emptive rights.
Thomas Kasser, President of Intrexon's Animal Science Division, said, "Today's developing world population is faced with increasing demand across a broad spectrum of markets including food, fuel and healthcare. Intrexon's mission is to apply its synthetic biology expertise and know how to provide solutions to these major global issues. Our agreement with AquaBounty demonstrates this commitment and focus in the food arena.
"The ECC with AquaBounty places Intrexon in strong position to revolutionize the aquaculture industry with faster growing, environmentally friendly products to meet the strong and growing demand for finfish. Our priority will be to develop the next generation of AquaBounty's existing product, AquAdvantage® Salmon, and to identify other products where our synthetic biology can implement leading edge technology to advance the sustainability and efficiency of fish production. AquAdvantage® Salmon is capable of reaching marketable size in about half of the conventional time, reduced from approximately 28 to 36 months to 18 months, with a 30% reduction in feed required to reach market weight. The FDA has published a draft Environmental Assessment and a preliminary draft of a Finding of No Significant Impact as one of the last steps in the approval process. The public comment period for these documents will close on April 25, 2013."
Ron Stotish, Chief Executive Officer of AquaBounty commented, "This collaboration with Intrexon is a transformative event for AquaBounty by providing access to one of the most innovative genetic sciences in the world today. It allows us to produce the next generation of existing products and new finfish products that meet today's demand for global consumption and environmental challenges."
Under terms of the agreements:
- AquaBounty will utilize Intrexon's UltraVector® platform and other technologies to research, develop, manufacture and market products involving key synthetic biology tools to improve the value of finfish intended for human consumption
- AquaBounty will pay Intrexon quarterly 16.66% of the gross profits calculated for each collaboration product and pay 50% of quarterly revenue obtained from a sublicensor in the event of a sublicensing agreement
- AquaBounty will reimburse Intrexon for the costs, on a full time equivalent basis, of certain services provided under the aquaculture program
AquaBounty also announced the appointment to its board of directors of three individuals designated by Intrexon. The appointed board members are Thomas Barton, Managing Partner, White Rock Capital Management, L.P., Thomas R. Kasser, Ph.D., President of Intrexon's Animal Sciences Division, and James C. Turk, Jr., Partner, Harrison & Turk, P.C.
About Intrexon Corporation
Intrexon Corporation is a privately held biotechnology company focused on the industrial engineering of synthetic biology. Intrexon is deploying its extensive capabilities to rapidly design and produce novel and enhanced biological products and processes across multiple industry sectors, including: human therapeutics, protein production, industrial products, agricultural biotechnology, and animal science. The company's advanced bioindustrial engineering platform enables Better DNA™ technology by combining revolutionary DNA control systems with corresponding advancements in modular transgene design, assembly, and optimization to enable unprecedented control over the function and output of living cells. More information about the Company is available at www.dna.com.
About AquaBounty Technologies
AquaBounty Technologies is a biotechnology company focused on improving productivity in commercial aquaculture, a $100 billion industry and the fastest growing segment of the worldwide food industry. The company's objective is the application of biotechnology to ensure the availability of high quality seafood to meet global consumer demand. The company is developing products to address critical production constraints in the most popular farmed species, focusing initially on salmon, trout and shrimp. Its AquAdvantage® fish program is based upon a single, specific molecular modification in fish that results in more rapid growth in early development.