Everything in the garden is rosy for Plant Health Care

Published on Tuesday 16 December 2008 20:30

SMALL BUT BEAUTIFUL

PLANT Health Care's share price grew yesterday after it signed a new deal with crop giant Monsanto.

Under the deal, the firm will grant Monsanto the exclusive rights to commercialise harpin seed treatment technology in canola, corn, cotton, soybeans and selected vegetables.

In return, Plant Health Care will receive a milestone payment plus ongoing royalties based on the volume of harpin seed treatment.

As part of the agreement Monsanto will issue an order of product to be delivered by the end of this year.

Financial terms were not disclosed, but Plant Health Care believes the agreement will make a material contribution to the company's future revenue and profits.

John Brady, chief executive of Plant Health Care, said: "This agreement, and the order for product that is 12 months earlier than anticipated, is transformational for Plant Health Care and is fundamental proof of our model for commercialising our technology portfolio in partnership with major industry players."

Plant Health Care, which has a market cap of about 100 million, is listed on Aim but based in Pittsburgh, in the US.