Origin Agritech gets worldwide rights to new weedkiller-resistant seed gene; shares jump
Associated Press
09/17/09 10:50 AM EDT
NEW YORK — Shares of Origin Agritech Ltd. jumped nearly 20 percent Thursday after the China-based hybrid seed developer said it had acquired the worldwide rights to a new seed gene for corn, soybean, rice, cotton and canola plants that is highly resistant to glyphosate, a type of weedkiller.
Origin acquired exclusive rights to sell and develop the gene, which is patented in the U.S. and China, for the life of those patents. It will also hold licensing rights for other companies using the patented technology, which has not been sold yet to consumers.
Financial terms of the deal were not disclosed. The patents were granted in 2007 and have a life of 7 years in the U.S. and 8.5 years in China, not including extensions for modifications of the technology, an Origin spokesman said.
Shares rose $1, or 20.1 percent, to $5.79.
Origin Agritech develops genetically-modified corn, rice and canola seeds for farmers in China and Southeast Asia.
More than 75 million acres of genetically-modified glyphosate-tolerant crops have been planted since their introduction in 1996, Origin said. Plants that are resistant to glyphosate can cut weed-control costs for farmers.
