Mar 17, 2016
Adama Licenses Starpharma's Priostar for Novel 2,4-D
Melbourne, Australia and Tel-Aviv, Israel; 17 March, 2016 – Starpharma (ASX:SPL; OTCQX: SPHRY) and Adama today announced the licensing by Adama of Starpharma's Priostar® dendrimer technology for the development and commercialization of an enhanced, proprietary 2,4-D herbicide for the US market. 2,4-D is one of the top three herbicides sold world-wide, with global sales in 2014 estimated by Phillips McDougall to be around US$680 million. The US market in 2014 was worth approximately US$115 million, and has been projected by the US Department of Agriculture to grow by more than 70% by 2020.
Adama has already undertaken development of a novel and unique 2,4-D product containing the Priostar® dendrimer technology, which is expected to provide better flexibility and weed control benefits to the grower, as well as improved safety. This will allow for on-target application, thus benefiting the environment by reducing the amounts of product required.
Under the license, Starpharma will receive royalties on sales of the proprietary Adama Priostar®-improved 2,4-D products. In addition to the US, the agreement also includes a mechanism to expand the license into additional territories.
Sami Shabtai, Head of Innovative Development at Adama, commented, "As a farmer-centric company, Adama constantly strives to bring new and innovative solutions to farmers that will simplify their lives. The innovative nature and superior performance of the Priostar® formulations fit well with our strategy to deliver simple and efficient solutions to farmers to help them grow. This is yet another step in the evolution and differentiation of our offering, as we continue to introduce unique mixtures and formulations to the market."
Dr. Jackie Fairley, CEO of Starpharma, said, “We enjoy a positive relationship with Adama, and their extensive trials of Priostar®-improved 2,4-D formulations have led to this license agreement. With Adama's strong, proven record of innovative product development, we are very pleased to have them as commercial partners for Priostar®-improved 2,4-D products. In addition, we continue to explore other Priostar® product opportunities with Adama.”
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