S&W Seed Company (Nasdaq: SANW), a global agricultural technology company, today provided an update on its seed trait technology development and commercialization activities.
“Over the past few years, S&W has made significant progress toward its evolution into a completely integrated agricultural seed company. Key to that transformation has been the development, and now the commercial launch, of proprietary seed trait technology products,” commented Mark Wong, CEO of S&W Seed Company.
“The commercialization of these products is anticipated to transform the operating profile of S&W into a high growth, high margin business, with more than 50% of our gross profit contribution within the next decade expected to come from these new tech products. With a highly accomplished management team that has successfully developed, marketed, licensed, and sold similar trait technologies over the years, I am highly optimistic that S&W is entering a new era.”
Today S&W also released a technology development and commercialization presentation, which can be found here.
Lead Trait Technology Products
Double Team Sorghum (DT™):
*Non-GMO tolerance to broad spectrum grass herbicide.
*Commercial launch expected in spring 2021.
*Potential to revolutionize the sorghum market in the same way other weed control technologies have enhanced yields for crops such as corn, soybeans and cotton.
*DT™ trait is expected to have the highest value of any commercial sorghum trait currently in the market.
*Market survey indicates strong grower demand/adoption.
Introduction of DT™ sorghum has potential to significantly expand size of sorghum market which has previously been unable to address issues with grassy weed competition.
*Product discovered and developed by in-house R&D team.
*Partnered with ag chem company ADAMA for herbicide registration and commercial development.
*Initial market launch in grain sorghum planned in the U.S., with international expansion expected to primarily be driven by Brazil.
*Product to initially be marketed by S&W and also made available for out-licensing to major agricultural companies with existing sorghum market share.
Improved Quality Alfalfa (IQ™):
*Designed to provide farmers a new way to produce alfalfa forage with improved ruminant digestibility.
*Commercial launch expected in fall 2021.
*Improved digestibility increases efficiency of dairy operations, resulting in more milk per ton of feed, higher income for alfalfa producers, and reduced dietary wastage.
*IQ™ alfalfa designed to be a stand-alone, non-GMO product that is not coupled with other GMO technologies.
*Developed in partnership with leading biotech company, Calyxt, Inc. (Nasdaq: CLXT).
*S&W plans to market IQ™ products under its Alfalfa Partners brand and will also offer IQ™ licenses to industry partners.
*Initially developed for non-dormant alfalfa varieties, to be followed by dormant alfalfa variety options in 2022 and beyond.
Dhurrin-Free Sorghum (DF™):
*Dhurrin is a natural toxin that sorghum produces to protect itself from grazing animals when the plant is under stress from drought, temperature fluctuation or other conditions. In some circumstances, the biproduct of dhurrin metabolism, prussic acid, can kill livestock.
*Genetically removing dhurrin can eliminate the risks associated with grazing on or producing hay from stressed sorghum fields.
*Developed in partnership with and licensed from Purdue University.
*DF™ trait is expected to shift forage sorghum seed market from commodity (low value) to propriety (high value).
S&W expects to be the only company in the market with this technology.
*Projected commercial launch in 2023.
Financial Opportunity and Vision
Management has conducted substantial market research to assess the combined potential opportunity for the Company’s three lead trait technology products and its core non-tech business. This included surveys with growers, distributors, potential licensees and industry experts, among others. Based on this market research and management’s estimates and assumptions of market share, technology prices and anticipated continued growth of the existing core business, the Company provided the following mid- and long-term financial vision.