INDEPENDENT NEWS

ArborGen faces faster route to commercialisation in US

Published: Fri 16 Mar 2012 02:08 PM
ArborGen faces faster route to commercialisation in streamlined US approval process
By Paul McBeth
March 16 (BusinessDesk) – Forestry biotech company ArborGen, which counts NZX-listed Rubicon as a major shareholder, may be on a quicker route to taking one of its products to market after US officials trimmed the timeline in the approval process of biotechnology products.
The US Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) has outlined new processes to determine whether biotech products should be approved for commercial use, cutting the time to 13 to 16 months from an average three years per petition previously.
That means ArborGen could get its cold-tolerant eucalyptus product to market sooner than previously expected, provided it secures all the appropriate approvals.
“These process improvements announced by APHIS represent a significant improvement to the regulatory approval process previously in place, and these changes will be welcomed by the wider biotechnology community,” chief executive Andrew Baum, who was only appointed to lead the company this week, said in a statement. “The new process should achieve faster petition determinations without foregoing any of the rigour of APHIS’s environment assessment process.”
ArborGen wants to bring genetically-modified eucalyptus trees to market to enable production of the hardwood for pulp and biofuel in managed plantations in the south-eastern United States. The company has been selling varietal pine seedlings since 2006.
An early approval would be a fillip to the forestry biotech company, which was forced to shelve plans for an initial public offering last year as US financial markets struggled to revive in the wake of the global financial crisis, several years ago.
ArborGen’s shareholders Rubicon, International Paper and MeadWestvaco will have to source new funding to pursue a float, and may need to stump up more cash, tap private capital or seek new bank finance.
Shares in Rubicon climbed 5.4 percent to 39 cents in trading today.
(BusinessDesk)
BusinessDesk
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk
Email:

Next in Business, Science, and Tech

Record Dry Spells And Effects On Forests – Expert Reaction
By: Science Media Centre
Official Cash Rate Remains At 1.0 Percent
By: The Reserve Bank of New Zealand
Climate Change Throws Tree Seeding Out Of Sync – New Study
By: University of Canterbury
Novel coronavirus detected in China –Expert Reaction
By: Science Media Centre
Flooding could release toxic gas – Expert Reaction
By: Science Media Centre
More Rain For The South While Dry Continues In The North
By: MetService
Another dry week ahead, with temperatures rising
By: MetService
Auckland Set To Break Dry Spell Record
By: NIWA
Rolleston Fire
By: Fire and Emergency NZ
Farmers Fear New Water Rules Could Push Them Under
By: RNZ
The OCR Should Be Cut
By: Michael Reddell
MPS, OCR and FSR dates for 2021
By: Reserve Bank
Reserve Bank Of New Zealand Keeps Official Cash Rate At 1 Percent
By: RNZ
XE Morning Update
By: XE Morning Update
Economic Growth Slowing Under Coalition Government
By: New Zealand National Party
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media