FMC to Buy Denmark’s BioPhero
US-based agricultural sciences company FMC has entered into an agreement to buy BioPhero, a Danish pheromone research and production firm, for about $200 million.
FMC had participated in a Series A funding in March 2021 for BioPhero, which was founded in 2016 as a spin-out from the Technical University of Denmark. BioPhero’s aim is to replace many chemical insecticides with sustainable, non-toxic, biological insect pheromones. Using pheromones can control the buildup of insect populations in farmers' fields by disrupting the mating process, reducing overall egg-laying by adults and decreasing the next generation of the target insect population.
“This acquisition demonstrates our continuing commitment to invest in biologicals and adjacent technologies, expanding our world-class portfolio while advancing sustainable agriculture,” said FMC president and CEO Mark Douglas. “BioPhero is a pioneer in the production of pheromones through a unique, highly efficient bioprocessing method—a game-changer in pheromone manufacturing technology. FMC's broad market access, leadership position in the high-value insecticide market, formulation know-how and application expertise provide significant opportunities to bring sustainably advantaged pheromone technology to more agricultural markets around the world.”
BioPhero’s yeast fermentation technology is said to produce the pheromones at significantly lower cost and with fewer process steps versus traditional chemical synthesis methods. FMC said the lower costs expand the addressable pheromone market from today's focus on specialty fruit and vegetables to now include large row crops such as maize, rice and soybeans.
Kathleen Shelton, FMC executive vice president and chief technology officer, said the company expects to launch five new pheromone products over the next three to five years. She added: “The opportunities for advanced biomanufacturing technology extend well beyond insect control. Working together, we can significantly expand the use of fermentation technologies across a wider set of crops targeting a variety of pests, including fungi and weeds.”
The Philadelphia-headquartered group expects pheromones and pheromone-based products to contribute approximately $1 billion in revenue at above company-average EBITDA margin by 2030.
Author: Elaine Burridge, Freelance Journalist
