Plant Health Care PLC said its US unit and Monsanto Co have entered into an agreement for the commercialisation of harpin-based technology as a seed treatment in Monsanto's major row crops and vegetables.
Harpin is a class of proteins produced in nature by certain bacterial plant pathogens. It elicits a protective response in the plant that makes it resistant to a wide range of fungal, bacterial, and viral diseases. Because Harpin does not interact directly with disease pests, these organisms are not expected to develop resistance to it.
Over the past year Monsanto has evaluated the technology and will proceed to continue commercial development of harpin seed treatment as part of its global seed treatment platform.
Under the long-term agreement, Plant Health Care Inc will license to Monsanto the exclusive rights to commercialise harpin seed treatment technology in corn, soybeans, cotton, canola and selected vegetables.
In return, Plant Health Care will receive milestone payments and ongoing royalties based on the total volume of harpin seed treatment. As part of the agreement Monsanto will issue an order of product to be delivered by the end of 2008.
Plant Health Care declined to disclose financial terms, but said it believes the agreement will make a material contribution to the company's future revenue and profits.