French group squashes tick deal with mozzie killer Bio Gene
Health & Biotech
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It’s bad news for mozzie-killer Bio-Gene Technology as a French partnership has ended.
French animal health company Virbac is not going to develop products using Bio-Gene’s (ASX:BGT) FlavocideTM tick and buffulo fly formulation.
Bio-Gene’s shares plunged 26 per cent to 12.5c. The company listed at 20c.
The agreement with Virbac was signed in June 2017, for initial field testing of the FlavocideTM formulation.
“Virbac has subsequently undertaken some initial and rudimentary field studies to evaluate FlavocideTM in its formulations, and the company understands that, as a result of the data arising from these studies, Virbac is unlikely to proceed with developing products with FlavocideTM at this stage,” Bio-Gene said.
Ever hopeful, Bio-Gene chief Richard Jagger says they will get the Virbac data to use in the future and they’re continuing their own research programs into tick and buffalo fly control.
“As part of that program, Purdue University has already started a study on FlavocideTM efficacy on ticks, and the early data is showing evidence that this molecule has the potential to control ticks, and specifically resistant populations of ticks and flies,” he said.
Bio-Gene (ASX:BGT) raised $7.1 million last year to develop anti-resistance pesticides, promising those who bought into the float an option to buy shares at 20c for every five they held at a certain date.
Bio-Gene is developing two products targeted at different segments of the insecticide market: Flavocide and Qcide.
Flavocide is a chemically synthesised product based on a molecule found in Australian eucalypt, the Gympie Messmate. Qcide is designed as an organic product incorporating oil extracted from the same tree.