Ghent, Belgium
November 5, 2008
In November 2007,
Devgen announced its intent
to divest its pharma unit in order to focus on its
agro-activities. Through its research activities in Belgium,
Devgen has developed a unique technology position in crop
protection and has grown to a fully integrated trait and seed
business in Asian growth markets, with a focus on rice, sorghum,
sunflower and pearl millet and a licensing business in other
crops. Devgen's pharma division focuses on the development of a
novel class of preclinical drug candidates for the treatment of
inflammatory diseases.
Devgen took this decision to offer its promising agro division
the maximal growth opportunities. Both divisions require
substantial investments and in this stage of their development
do not have synergies any longer. The pharma activities
furthermore carry a substantially higher risk profile.
During the past year the company has continued its investments
in its pharma programs and substantial efforts were made to
divest the pharma division. In the deteriorating financial and
investment climate, potential candidate investors (venture
capitalists, biotech- and pharma companies) have become more
risk averse, independent of the quality of the pharma programs.
This has thwarted Devgen's divestment process. Devgen therefore
today decided to no longer invest in the development of its
pharma programs and to initiate the dismissal of the 19
employees of its pharma division. Today, 217 people are employed
by the Devgen group worldwide.
In line with this strategy Devgen will focus its available
resources on its agro activities. The company's activities in
Ghent include, furthering its key technologies (RNAi for crop
protection, trait development and molecular breeding), bringing
its candidate nematicide to market, and the IP and business
coordination of its growing trait and seed business in India and
in South-East Asia. These activities do have significant
synergies, are close to market and sustainable revenue growth
and offer Devgen the best opportunities for growth and
development.
"This serious step was taken after consideration of all possible
alternatives taking into account the interests of all
stakeholders. In the current market the chance to valorize
Devgen pharma assets without further major investments of the
company is remote." explains Thierry Bogaert, CEO of Devgen.
"Devgen will focus its resources and will further develop in the
agro-market segment where the company has the strongest
technology and business opportunities: the trait and seed
opportunities in rice, an important growth market in which the
company is well positioned to develop its technology and
business faster than the market and to build a leadership
position."
Devgen is a public agricultural biotech and seed company
focused on developing and commercializing:
• biotech traits and hybrid seeds to meet the growing needs for
high yielding, high quality hybrid rice, sorghum, millet and
sunflower of the Indian and other south-east Asian markets;
• a novel generation of biotech products to protect a wide
spectrum of crops incurred from pests; to render crops more
tolerant against stress factors such as drought and salty soils
and to decrease the need for fertilizer use by optimizing
nitrogen uptake;
• a new generation of agrochemical products to protect crops
from damage inflicted by plant parasitic nematodes.
Incorporated in 1997, Devgen has offices in Ghent (Belgium),
Singapore, Hyderabad (India) and Delaware (US) and employs more
than 200 people worldwide. Devgen is listed on Euronext Brussels
(ticker: DEVG) since June 2005. |
|
