US multinational crop protection business FMC Corporation has agreed to acquire BioPhero, a Danish startup which makes pheromone-based biocontrols for farmers and growers. The $200 million deal is expected to close in the third quarter of 2022. It gives FMC access to biologicals technology while enabling BioPhero to benefit from FMC’s R&D capability and geographical market reach.
Based in Copenhagen, BioPhero was founded in 2016 as a biotechnology spin-out from the Technical University of Denmark. The business aims to commercialise its novel yeast fermentation technology to produce safe insecticide replacements for conventional pesticides, as part of a global shift to a more sustainable agriculture.
The company’s most recent funding round a Series A in March 2021 saw $17m raised from lead investor DCVC Bio plus FMC’s FMC Ventures, Novo Holdings and Syngenta Ventures.
BioPhero claims its advanced fermentation platform enables it to make pheromones at substantially lower costs and in higher volumes than those made by conventional chemical synthesis, which is also less sustainable. Rather, it harnesses yeast fermentation based on renewable raw materials -mainly co-products from plant oil and sugar refining – to produce pheromones for pest control on corn, rice, soybeans and other row crops.
The acquisition will be integrated into FMC’s European Innovation Centre which is also based just outside Copenhagen – it is the lead facility for FMC’s global biologicals work. The transaction includes the startup’s technology, intellectual property and supply agreements, with the whole BioPhero team moving across to FMC.
FMC anticipates that it will generate revenues of around $1 billion from pheromones and pheromone-based insect control products by 2030, with further acquisitions expected in this space. Market analysts predict the global biological crop inputs sector could be worth $18.5bn by 2026, from $10.6bn today.
“We’re excited to add BioPhero’s innovative pheromone molecules to our new product pipeline, and we expect to launch five new pheromone products over the next three to five years,” says Kathleen Shelton, FMC’s executive vice president and chief technology officer. “The opportunities for advanced biomanufacturing technology extend well beyond insect control. Working together, we can significantly expand the use of fermentation technologies across a wider set of crops targeting a variety of pests, including fungi and weeds.”
BioPhero’s co-founder and chief scientific officer Irina Borodina adds: “In the last couple of years, BioPhero has developed from a small startup to an established biotech company. We now have the team, the technology and the production capability to produce pheromones that outperform available pest control solutions. Together with FMC, I look forward to accelerating the development of new insect pest products. The world needs our solutions.”
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US multinational crop protection business FMC Corporation has agreed to acquire BioPhero, a Danish startup which makes pheromone-based biocontrols for farmers and growers. The $200 million deal is expected to close in the third quarter of 2022. It gives FMC access to…
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