October 16, 2024

By Gerelyn Terzo, Global AgInvesting Media

Ghent, Belgium-based Biotalys has secured subscription commitments totaling €15 million (US$16.3 million) via a private placement of new equity shares involving both new and returning investors. Biotalys, an agtech company developing protein-based biocontrol solutions for sustainable crop protection, will direct the proceeds toward building its proprietary Agrobody technology platform and strengthening its biocontrol pipeline. Through its products, Biotalys aims to provide farmers with tools to avoid crop loss while extending post-harvest protection and slashing food waste.

The company’s maiden product to help fruit and vegetable growers combat fungal diseases — dubbed Evoca — remains in regulatory review in the U.S. and EU. Alongside supporting its tech platform, the investments also give Biotalys cash runway to bolster the number of programs within crop protection and the food value chain including potential partnerships.

As part of the deal, Biotalys, whose stock trades on Euronext, has issued approximately 5.3 million new shares at an issue price of EUR 2.83 per share, reflecting a 10 percent discount from recent trading levels. Biotalys welcomed new investor Dutch asset management firm ASR Vermogensbeheer as well as current backers Ackermans & van Haaren and the Agri Investment Fund (AIF). AIF revealed that its part of the transaction is €5 million (US$5.4 million), buoying its investment tally in the company to €17 million (US$18.4 million). Earlier this year, Biotalys appointed Monsanto and Bayer alum Laura Meyer to its board of directors and head of its audit committee.

Founded in 2013 as a spinoff from VIB, and located in Belgium’s Ghent biotech cluster, Biotalys has collaborated with the likes of the Gates Foundation and Syngenta. The company is behind a pipeline of biocontrol products targeting crop pests and diseases across the entire value chain, all of which stems from its flagship Agrobody tech platform. Agrobody facilitates the “discovery and development of a variety of solutions against multiple targets, such as fungi and harmful insects that cause significant crop losses,” according to the announcement. Estimates suggest 40 percent of crop yields are lost to pests and diseases each year, including crops like rice, wheat and potatoes that directly impact food security as well as commodity crops including bananas and coffee.

According to data published by Biotalys, the global insecticide and fungicide market is predicted to grow at a CAGR of 4.5 percent up to 2030 to be worth $51.3 billion. The global biofungicide and bioinsecticide market is estimated to grow at a CAGR of 12 percent in that period for a combined value of $10.2 billion. There’s also been a wave of consolidation in this space, as evidenced by the combinations of Valent Biosciences and FBSciences as well as Rovensa’s acquisition of Agro-K, both last year.

Biotalys CEO Kevin Helash stated, “We will strategically deploy these funds to advance our R&D pipeline with a target of launching one new project annually, such as the recently announced addition of BioFun-8 for expanded fungal control. The timing of this investment extends our cash runway as we await final regulatory approvals for EVOCA and move toward commercializing EVOCA NG and generating a strong and increasing revenue stream long-term.”

Investors also commented on the deal:

ASR Vermogensbeheer Senior Portfolio Manager Ko van Nieuwenhuijzen said, “We were impressed by Biotalys’ technology and the team’s ability to develop the biofungicide EVOCA™ which is currently awaiting regulatory approval, while a second product candidate is now being tested in field trials. ASR’s participation in Biotalys’ capital increase fits with our strategy of investing for the long-term in developments that benefit people and the planet.”

Ackermans & van Haaren executive committee member Piet Bevernage, who is also on the Biotalys board, stated: “We first invested in Biotalys in 2019, further supported the company during the IPO in 2021 and today are pleased to further increase our position in the company. We strongly believe in the AGROBODY technology platform to develop efficacious new biocontrols for growers to protect their crops while reducing the impact on the environment. We are a committed long-term partner and will continue to offer strategic guidance, in addition to our current financial support.”

AIF CEO Patrik Haesen, who also has a seat on the Biotalys board, said “With rising resistance and stricter regulatory constraints, growers are in dire need of new solutions to fight crop pests and diseases. We are committed to supporting innovators such as Biotalys, which is developing products with new modes of action to help growers in Belgium and abroad to protect their livelihood and deliver healthy, sustainable produce.”

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