Company Interview / The small cap making healthy inroads in insect control

Key points:

Bio-Gene Technology (ASX: BGT) received positive feedback from the Australian Pesticides and Veterinary Medicines Authority for one of its products.The company addresses globally significant issues like insect control affecting agricultural production and vector borne diseasesBio-Gene (ASX: BGT) leverages its innovative products to form global partnerships and engage in license deals, with plans for further capital raising and strategic utilisation of shareholder capital

Tim Grogan, the MD and CEO of Bio-Gene Technology (ASX: BGT), details the positive feedback received from the Australian Pesticides and Veterinary Medicines Authority (APVMA) for one of their products. Highlighting the development of two new compounds derived from a species of eucalyptus, namely flavocide, Tim explains how these aid in the protection against harmful insects in agricultural production, public health and several consumer applications. Stressing the safety and environmental-friendly nature of these compounds, as opposed to many internationally marketed synthetic compounds, he regards the feedback from the APVMA as a crucial milestone for Bio-Gene (ASX: BGT).

Further, Tim sheds light on the global issue of vector borne diseases, such as malaria and dengue, caused by mosquitoes. He points out the increasing threat posed by these diseases not just in equatorial regions, but also in places like Singapore, Africa and Florida. He underscores the significant and growing global opportunity for Bio-Gene (ASX: BGT) to address the resistance built up within mosquito populations through their unique new mode of action, describing it as an exciting time for both the product's development and the company.

Focusing on the future prospects, Tim notes that Bio-Gene's (ASX: BGT) business model follows a biotech pattern, whereby it serves as a source of innovation for new products and engages in partnering deals with significant global reach. With three partnerships already established with Evergreen Garden Care, Mosquito control in the US, and Stockton/STK, he reveals Bio-Gene's (ASX: BGT) plans to enter into further license deals, upfront milestone and royalty payments on sales, and a margin on the supply of the active compound. He also mentions Bio-Gene's (ASX: BGT) upcoming goal of undertaking required safety studies, additional capital raising, and tactical leverage of shareholder capital against grants.

Full unedited transcript below:

0:00

Let's get into some company news now. From the smaller end of town and Aussie Agtech bio gene technology has received positive feedback from the Australian Pesticides and Veterinary Medicines Authority for one of its products. What does that mean for the company and more broadly, the sector? For more on that, Biogen's MD and CEO Tim Grogan joins me now. Thanks so much for your time, Tim. Tell us what this product is. And I guess more broadly what you're doing at Biogen.

0:24

So by way of background, by Gene is developing two new compounds that are active to protect against insects in agriculture, so agricultural production, public health, mosquito control and in consumer applications. And as everybody will be aware, there's an issue with safety and environmental profile for many of the synthetic compounds that are currently marketed internationally. So our compounds are derived from a species of eucalyptus. Actually, the picture behind me represents that that source. And what we've been able to do is move forward as a company to develop these commercially. So flavor side and Q side are the names of those two. And the feedback we've received from the Apvma is very important. There's a process that we're able to engage with them at an early stage to ensure that the plan studies are appropriate and are on track for filing our submission at the end of next year, 2025. That's a key milestone for the company. So this is

1:24

obviously protecting public health but also agriculture. Yeah, that's that's right. So insect control comes in many guises. Obviously one of the most important things is to ensure friendliness for beneficial insects. And we have that um, with, with bees for example, where able to, uh, you know, fight the problem pests. But at the same time, the best officials have a favorable profile. So in public health, mosquitoes are an enormous issue with vector borne diseases such as, uh, malaria and dengue. And, uh, in fact, the mosquito is regarded as the most dangerous animal on Earth by a long way. So it's may not be a necessarily a threat in southern Australia, but in places like Singapore, Africa. Throughout the equatorial regions, it's a it's enormous problem. And malaria is actually now present in Florida. So it's a very, very significant and growing global opportunity

2:24

for for oversight and for the company. And we have the opportunity to present a totally new mode of action, which means that the resistance that's being built up within mosquito populations internationally to the current compounds. That's now a problem in terms of their effectiveness. We can address that too through a unique new mode of action. So it's a really exciting time for the development of the product and for the company. Yeah. You make a really interesting point. I was living in Singapore during the pandemic, and at one point dengue was a bigger risk than Covid 19. What is all this doing for your bottom line? How are you expecting this to add to Biogen's, I guess revenue?

3:06

So Biogen's business model, similar to a biotech company, is that we're a source of innovation and new products and and enter into partnering deals with the players that have global reach. And we've already entered into three of those partnerships with Evergreen Garden Care for consumer products, um, based in Europe and Australia, uh, also with mosquito control in the US and also with uh Stockton or STK based in Israel that have a global portfolio of natural products, uh, in agriculture. And we'll be doing more deals. So we we enter into license deals and we receive upfront milestone and eventually royalty payments on the sale of that, in addition to, uh, a margin on the supply of the active compound. We're currently in a pre-revenue stage in terms of product development, but we've entered into those early stage deals and it's demonstrated demand for what we're doing. We'll do more of those deals and we have that opportunity because interestingly, we have that

4:05

exposure to agriculture, public health and consumer, which is quite an unusual opportunity for a small Australian company. And I guess in terms of what you're doing next, you're looking to raise capital or what's next for Biogen. So the key horizon milestone, as I mentioned, is the regulatory submission of the data pack for flavor side at the end of next year. And between now and then, we'll be undertaking the required safety studies to support that application. We've made it clear that we've currently got 2.2 million in the bank. And and at some stage, we will enter into a further capital raising and be able to complete that process with the support of the market and and our shareholders. In addition to that, obviously we leverage shareholder capital very, very carefully against grants, and we're in with a number of those. And also the upfront and milestone payments we've received from partners. We're a small group that

5:06

makes the money go a long way and we're very, very lean and efficient. So that's that's a good model for what we're doing. Do you think you're being unfairly punished by the market when you look at where your share price is?

5:18

I don't see it at all. As punishment, I think the challenge and the opportunity for companies like Biogen is to continue to make market aware of the exciting things we're doing and explain it in a way that simple and easy to understand. There is no doubt that what Biogen doing has an enormous potential impact for the world and for the sectors that I've highlighted and our global opportunities real. Based on the partnerships that we already have, let alone those that will bring to the table. So, as I always say to shareholders and to interested parties, if you care a lot about some of the macro trends, like the availability of food to feed the world and, uh, you know, mosquito borne diseases like malaria and dengue, there's no better opportunity than Biogen.