Bio-Gene Technology Case Study
22
Peter May Executive Director – R & D Collaborate 2019 – Cairns 22 October 2019 Bio-Gene Technology – Case Study
Transcript of Bio-Gene Technology Case Study
Peter MayExecutive Director – R & D
Collaborate 2019 – Cairns
22 October 2019
Bio-Gene Technology – Case Study
Summary
• Bio-Gene Technology overview
• Opportunity & approach
• Projects & stakeholders
• Challenges faced
• Solutions & successes
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Bio-Gene Technology & Strategy
BETA-TRIKETONES
Platform Technology
Products Flavocide™ & Qcide™
have demonstrated highly effective insect control properties
Product development through collaboration with private & public
research & development organisations
Targeting public health, animal health, consumer & crop protection sectors
ASX-listed agtechcompany developing natural insecticide
technology
Novel insecticide mode of action to address the increasing problem
of insecticide resistance
Business model to work with commercial partners to take end-use-products to
market
Bio-Gene Technology & Strategy
BETA-TRIKETONES
Platform Technology
Products Qcide™ & Flavocide™
have demonstrated highly effective insect control properties
Product development through collaboration with private & public
research & development organisations
Targeting public health, animal health, consumer & crop protection sectors
ASX-listed agtechcompany developing natural insecticide
technology
Novel insecticide mode of action to address the increasing problem
of insecticide resistance
Business model to work with commercial partners to take end-use-products to
market
Products
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Qcide™
Tasmanone-rich oil
extracted from
Eucalyptus cloeziana -
Gympie messmate
Well suited to consumer
product applications, also
public health & crop
protection uses where a
natural product is
preferred
Natural Compound
Flavocide™
Flavesone - synthesised
compound that occurs
naturally in plants
Well suited for larger
volume markets such as
crop protection, animal
health & public health
Nature Identical Compound
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OPPORTUNITY - INSECT CONTROL MARKET
Insect Pest Control
Market Share
Asia Pacific18.0%
Europe22.6%
Rest of World9.9%
Americas49.5%
0
1
2
3
4
5
6
7
China Brazil India USA Japan
US
$bn
Insecticide Sales by Country
16%
19%
13%
52%
US$31.1bnAddressable
Market
Crop Protection
Food, Fibre & Grain
Storage
Consumer Applications
Sprays, Creams, Oils,
Lotions & Personal
Repellents
Animal Health
Livestock & Pet-care
products
Public Health
Vector Control for
Malaria, Zika &
Dengue
Growth Drivers:
• Growing human population and increased demand for food
• Public health in urban environments
• Globalisation of pests due to movement of products & people
• Chemical control remains key in integrated pest management
• Major segments of insect control market:
1) Crop Protection
2) Consumer Applications
3) Animal Health
4) Public Health
Global pest control is a rapidly growing industry with chemical controls representing the largest component
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CURRENT INSECTICIDES
• ~30 Modes of Action (MoA’s) have been classified
• 4 major groups represent most of volumes used
• Insecticides subject to regulatory pressure due to:
- toxicity to humans e.g. organophosphates
- toxicity to non-targets e.g. neonicotinoids vs. bees
• All groups also subject to failure due to insect resistance
• Need for products with novel modes of action
Reliance on fewer insecticide that are under increasing regulatory & performance pressure
0
1
2
3
4
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Organophosphates Pyrethroids Neonicotinoids Diamides
Annual S
ale
s (
US
$bn)
1
3
4
28
Group 1
Group 28
Group 3
Group 4
1977 1944
19902008
Major Modes of Action Groups
1
3
4
28
90 Products
8 Products 8 Products
30 Products
Major target markets
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Crop Protection Grain Storage
Public Health Consumer Products
Bio-Gene is
currently focused on
product & market
development in four
key applications
Pathway to Commercialisation
Intellectual Property Patents covering uses & other aspects of the technology
Knowhow & other IP protection e.g. manufacturing processes & plant breeders rights
Proof of Concept
Mode of action (MoA) understood in insect systems & classified under IRAC
Efficacy vs. key pests determined & target markets confirmed
Crop safety confirmed for crop protection markets
De-risking technologyMammalian toxicology – acute & chronic, metabolism, carcinogenicity, mutagenicity,
reproduction
Non-target & environmental toxicology – safety on beneficial organisms, environmental fate
Manufacturing Optimise production via agronomy, raw material & energy inputs, process improvements
Product specifications for quality & production consistency
Production costs & cost of goods determined & competitive
Commercialisation Strategic partnerships with public health, animal health & crop protection & consumer
companies
Product registrationRegulatory enabling studies – product chemistry, end-user safety, crop & food residues,
environmental impact, efficacy on pests, safety on non-targets
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COLLABORATIONS Product development through collaboration with private & public
research & development organisations
Bio-Gene collaborations - Australia
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Organisation Project
University of Sydney Qcide essential oil chemical characterisation
Western Sydney University Insect screening; initial use patent
Southern Cross University Qcide chemical characterisation & analytical support
University of Queensland Early synthesis of flavesone
CSIRO, Clayton Victoria Further development of flavesone synthesis process
Monash University, Clayton Mode of action studies
University of Melbourne Genetic investigations supporting mode of action
Adelaide University Dermal penetration studies to support tox de-risking
DAF Queensland Efficacy testing – grain storage pests, ectoparasites
James Cook University, Townsville Qcide oil extraction process engineering
James Cook University, Cairns Tree improvement & tissue culture program
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JCU PROJECTS – QCIDE OIL PRODUCTION
Tree farming
agreement for
oil supply from
FNQ growers
Improvements
in oil content &
chemical profile
via JCU cloning
program
Improvements
to oil extraction
processes via
JCU engineering
project
Improved trees
Improved oil
production
IP in systems,
processes, PBR
JCU Collaborations
• Access to expertise in plant science, tissue culture, biotechnology
• Access to facilities, laboratories, growth chambers, nurery shadehouses
• Access to engineering expertise in extraction processes, steam distillation
• Access to facilities, analytical laboratories, lab scale processing, instrumentation
• Access to funding opportunities via. JCU programs
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Tree farming agreement for oil supply from FNQ growers
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Improvements in oil content & chemical
profile via JCU cloning
program
Image J analysis of E.cloeziana oil glands
Tissue culture of tree lines selected
on oil content & chemical analysis
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Improvements to oil extraction
processes via JCU
engineering project
Leaf biomass harvested into bins for steam distillation to
extract oil from leaves, then separation of oil from condensate
Bio-Gene Support Programs
Support programs utilised:
• R&D Tax Incentive – qualifying research programs & activities
• Innovation Connections – CSIRO synthesis project, JCU engineering project
• CSIRO – kick start program – Flavesone synthesis project
• JCU Masters Program – JCU engineering project
• Monash Global Executive MBA Project – Advanced Manufacturing
Programs for consideration:
• Cooperative Research Centre – Projects, CRC Northern Australia
• Advance Queensland - Business Development Fund (BDF) & Industry Tech Fund (ITF)
• Manufacturing Modernisation Fund (MMF)
• Australian Post Graduate Research (APR) Intern.
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Bio-Gene Issues & Challenges
• Financial support – shareholders, commercial partners, third party non-dilutive funding
• Expertise – mode of action, toxicology, insecticide discovery, testing protocols
• Facilities – safety testing, metabolic/toxicokinetics ecotoxicity/environmental fate
• Global target market & pests – international network, access to exotic pests
• Regulatory data package – multiple regimes, local & international
• State vs. state vs. federal – Bio-Gene HO Victoria, directors Qld & WA
• Australia vs. overseas – balance of programs esp. for R&D Tax Incentive
• Risk management – technology, manufacturing, regulatory, competition, markets
• Agtech [agricultural/pest management] vs. Biotech [medical & health]
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Solutions & successes
• Support of private sector to agtech companies with innovative technologies
• Strong services base – financial, legal, IP, media, technical services
• Scientists & institutions world class, nationally integrated & global outlook
• Centres of expertise in key areas – integrated pest management (IPM) &
insecticide resistance management, mosquito control, grain storage pests
• Supporting technologies to assist development programs
• Regulatory systems well structured, reliable & science based (APVMA/TGA)
• Broad-based government support to R&D & SME’s, including regional
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Conclusion
• Bio-Gene Technology overview – Qcide & Flavocide, novel MoA
• Opportunity & approach – regulatory pressure & insecticide resistance
• Projects & stakeholders – integrated programs, multiple disciplines
• Challenges faced – funding, expertise, global market, risk management
• Solutions & successes – prioritisation, collaboration, project teams
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Bio-Gene Technology
Richard Jagger
CEO
M: +61 418 125 646
Peter May
Exec. Dir., R&D
M +61 412 251 016
Roger McPherson
CFO, Co. Sec.
M +61 418 416 237
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BOARD MEMBERS & MANAGEMENT
RICHARD JAGGER
CEO & Managing Director
DON BRUMLEY
Non-Executive Chairman
ROGER MCPHERSON
Chief Financial Officer &
Company Secretary
ROBERT KLUPACS
Non-Executive Director
PETER MAY
Executive Director, R & D
• 25+ years as a senior partner & leader of
Ernst & Young – Oceania
• Significant experience across IPOs,
transactions, audit & advising growing
entrepreneurial companies
• 20+ years working in agriculture globally
• Most recently employed as Managing
Director of Sinochem Australia
• Previously spent 15+ years at Monsanto in
various management roles
• 20+ years experience in crop protection
market with companies Orica & Crop Care
Australasia (now Nufarm)
• Founded Xavca, consulted to companies
such as Syngenta & Sorex (BASF)
• Former CEO & Chairman of BioProspect
(now Medibio, ASX:MEB)
• 30+ years corporate experience in
international tech development
• Previously MD & CEO of ASX-listed
Circadian Technologies Ltd
• Previously MD & CEO of ES Cell
International Pte Ltd
• Registered Australian patent attorney
• 15+ years experience as CFO & Company
Secretary across both listed & unlisted
companies
• Experience in the pharma manufacturing,
biotech & biopharma industries
• Previously CFO & Co-Sec of TPI
Enterprises (ASX:TPI)
KEVIN RUMBLE
Non-Executive Director
• Founding Director of Bio-Gene
• 20+ years experience in new plant
propagation, farming & live plant
transport techniques
• Involved in the development of QcideTM
& development of Flavesone as a first
step in the commercialisation of
FlavocideTM
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KEY ADVISORS TO THE BOARD
PROF. CATHERINE HILL
Purdue University
BGT Scientific Advisory
Board Member
DOUG RATHBONE
Advisor to the BGT Board
• 40+ years experience in agriculture,
most recently as Managing Director
of Nufarm, a position he held for 15+
years
• Under his leadership, Nufarm became
one of Australia’s most successful
agricultural firms with global sales
>$2.5B
• Purdue University, Dept. of
Entomology
• Showalter Faculty Scholar
• President’s Fellow for the Life
Sciences
• Authority in new insecticide
development & novel chemistry
NEIL ANDERSON
Chemistry & Manufacturing
Consultant
• Industrial Chemist
• Employed by Monsanto for 40 years
• Specialist in formulation
development, production, & process
management
• Qualified for manufacturing plant
audits, quality & environmental
management
