DevGen

DevGen was a Belgium-based agricultural biotechnology company established in 1997 as a spin-off of Ghent University and the Flanders Interuniversity Institute for Biotechnology. The company was created to commercialize intellectual property relating to RNA interference, or RNAi, particularly its application to nematodes and to biological screening for therapeutic targets. Its early scientific work used the nematode Caenorhabditis elegans as a model organism. This research had both pharmaceutical relevance, because C. elegans can be used in disease and target-discovery research, and agricultural relevance, because nematodes are important crop pests. During its first years, DevGen developed an extensive network of financing and research collaborations. It raised approximately €37 million during its first three years from institutional and private investors and also received grants from the Flemish government innovation agency IWT. Its early partnerships included Janssen Pharmaceutica, Merck and Genentech in pharmaceutical target discovery, as well as FMC Corporation and other agricultural companies in the search for novel insecticides and crop-protection applications. By 2003, these partnerships had generated further reported funding of approximately €23 million. The company expanded internationally in 2004 by opening an office in Singapore and moved into a research facility at the Ardoyen Technology Campus in Belgium. DevGen subsequently shifted its center of gravity toward agricultural biotechnology and seed development. In 2005, while employing nearly 100 people, it completed an initial public offering on Euronext Brussels that raised more than €33 million. It established rice-breeding stations in Kenya and began field trials there in 2005 and 2006. The company also advanced a nematicide program, conducting European field trials and later commercializing products based on iprodione for nematode control. A major strategic relationship was formed with Monsanto in 2007. Under the initial five-year collaboration, DevGen concentrated on rice and other small cereal grains, while Monsanto applied shared technologies to corn, cotton and soybeans. DevGen later acquired Monsanto seed subsidiaries in India, Pakistan and the Philippines for approximately $26 million. Those businesses developed and sold hybrid varieties of rice, sunflower, sorghum and pearl millet, giving DevGen a substantial operating and commercial presence in South Asia and neighboring markets. In 2009, the Monsanto relationship was expanded, with Monsanto paying DevGen €20 million in cash for broader rights to use DevGen technology. The company also reduced its pharmaceutical activities. It announced plans to separate the pharmaceutical division and dismissed 19 pharmaceutical employees in late 2008, leaving roughly 200 employees in agricultural operations. Former pharmaceutical staff later founded Amakem NV, which pursued kinase inhibitors discovered during work at DevGen. DevGen's crop-protection portfolio included Devguard, an iprodione-based nematicide approved in Turkey in 2009 for tomatoes and cucumbers. The product received European approval in 2010, and a related product marketed as Enclosure was approved in the United States in May 2010 for commercial peanut production. DevGen held method-of-use patents concerning iprodione's use against nematodes. In 2012, Syngenta announced a €403 million offer for DevGen. The transaction followed an earlier agreement under which Syngenta was to develop sprayable RNAi-based crop-protection products using DevGen technology. Syngenta cited DevGen's rice capabilities and RNAi expertise as important strategic reasons for the acquisition. DevGen's shares were delisted in February 2013, and the acquisition was completed in December 2013. DevGen therefore ceased to operate as an independent listed company, with its agricultural biotechnology, seed and RNAi capabilities becoming part of Syngenta.

DevGen was founded in 1997 as a university and biotechnology-institute spin-off in Ghent, Belgium. Its founding purpose was to commercialize licensed research on RNA interference in nematodes and to apply nematode biology to therapeutic screening and agricultural pest control. The company used Caenorhabditis elegans as a model organism because it offers a tractable system for studying human-disease pathways while also providing insights into nematodes that damage crops. The company financed its early research through a combination of venture investment, private financing and public innovation grants. Investors included GIMV, Abingworth, ING, KBC, Life Science Partners, Sofindex, Rendex, Mercator, Polytechnos and Capricorn. DevGen also developed partnerships across pharmaceutical and agricultural research. Janssen Pharmaceutica, Merck and Genentech were involved in target-discovery work, while FMC Corporation and other crop-science companies collaborated with DevGen on insecticide and agricultural applications. These relationships helped the company develop commercial routes for its scientific platform while it continued to build internal expertise. International expansion began in 2004, when DevGen opened a second office in Singapore and moved into a new research building at the Ardoyen Technology Campus. In 2005, the company went public on Euronext Brussels, raising more than €33 million and employing close to 100 people. Its strategy increasingly emphasized crop improvement and seed commercialization. Rice-breeding stations were established in Kenya in 2005, and the first field trials there were completed in 2006. DevGen also began European field trials of a nematicide in 2005. The agricultural strategy accelerated through a relationship with Monsanto. Announced in 2007, the collaboration divided development priorities by crop: DevGen focused on rice and other small cereal grains, while Monsanto applied the shared technology to corn, cotton and soybeans. Later in 2007, DevGen bought Monsanto subsidiaries in India, Pakistan and the Philippines. These businesses marketed hybrid seeds for rice, sunflower, sorghum and pearl millet, transforming DevGen from a research-centered biotechnology company into a more geographically distributed seed business. The Monsanto arrangement was expanded in 2009 when Monsanto paid DevGen €20 million for broader technology rights. During this period DevGen narrowed its pharmaceutical ambitions. It announced plans to spin off its pharmaceutical division and in late 2008 dismissed 19 employees working in that area. Approximately 200 employees remained in the agricultural business. Former members of the pharmaceutical team later established Amakem NV in 2010 to develop kinase inhibitors discovered during DevGen's research. Crop protection remained another important part of DevGen's portfolio. The company developed an iprodione-based nematicide and obtained Turkish approval in 2009 for use on tomatoes and cucumbers under the Devguard name. European approval followed in 2010. In the United States, Enclosure was approved in May 2010 for commercial peanut production. DevGen also held method-of-use patents concerning the use of iprodione to kill nematodes. DevGen's final corporate transition began in 2012, when Syngenta announced a €403 million acquisition offer. The bid followed an agreement under which Syngenta would develop sprayable RNAi-based crop-protection products based on DevGen's technology. Syngenta described DevGen's rice capabilities and RNAi competence as strategically valuable across several crops. DevGen's shares were delisted in February 2013, and Syngenta completed the acquisition in December 2013. After the transaction, DevGen no longer operated as an independent listed company; its technologies and agricultural activities were absorbed into Syngenta.

• 2013

  Acquisition by Syngenta is completed

  [1]DevGenen.wikipedia.org

  DevGen shares were delisted and Syngenta completed the acquisition in December, ending DevGen's independent corporate existence.

• 2012

  Syngenta announces acquisition offer

  [1]DevGenen.wikipedia.org

  Syngenta offered €403 million to acquire DevGen, emphasizing the company's rice operations and RNAi capabilities.

• 2010

  Nematicide approvals expand

  [1]DevGenen.wikipedia.org

  Devguard received European approval and Enclosure was approved in the United States for commercial peanut production.

• 2009

  Expanded Monsanto technology agreement

  [1]DevGenen.wikipedia.org

  Monsanto obtained broader rights to DevGen technology under an expanded relationship that included a reported €20 million cash payment.

• 2007

  Monsanto collaboration and seed-business acquisition

  [1]DevGenen.wikipedia.org

  DevGen and Monsanto began a technology collaboration, and DevGen acquired Monsanto seed subsidiaries in India, Pakistan and the Philippines.

• 2005

  Initial public offering and rice-breeding expansion

  [1]DevGenen.wikipedia.org

  DevGen raised more than €33 million through an Euronext Brussels IPO and established rice-breeding stations in Kenya.

• 2004

  Singapore office opens

  [1]DevGenen.wikipedia.org

  DevGen expanded its international presence by opening a second office in Singapore and moving into a new Belgian research facility.

• 1998

  Early pharmaceutical and insecticide collaborations begin

  [1]DevGenen.wikipedia.org

  DevGen entered research collaborations with Janssen Pharmaceutica in drug target discovery and with FMC Corporation in novel insecticide discovery.

• 1997

  DevGen is founded as a research spin-off

  [1]DevGenen.wikipedia.org

  DevGen was established in Belgium as a spin-off of Ghent University and the Flanders Interuniversity Institute for Biotechnology to commercialize RNAi and nematode-related intellectual property.

Agricultural biotechnology focused on combining molecular breeding, RNA-interference research, crop genetics and commercial seed development for food crops, particularly rice and other crops important in South and South-East Asian markets.

• Seed varieties

  Hybrid rice seeds

  Rice was DevGen's central crop focus during its transition into commercial agriculture. The company conducted breeding work in Kenya, developed rice-related technologies with Monsanto and marketed hybrid seed through its Asian operations. Its rice strategy connected molecular breeding and biotechnology research with practical seed distribution in major rice-producing markets.

• Seed varieties · 2007

  Hybrid sunflower, sorghum and pearl millet seeds

  Following its 2007 acquisition of Monsanto subsidiaries in India, Pakistan and the Philippines, DevGen sold hybrid seed for sunflower, sorghum and pearl millet in addition to rice. These crops broadened the company's agricultural portfolio and strengthened its position in South Asian and regional seed markets.

• Nematicide · 2009

  Devguard

  Devguard was an iprodione-based nematicide developed for agricultural control of nematodes. It was approved in Turkey in 2009 for tomato and cucumber production and later received approval in Europe. DevGen's related intellectual-property position included method-of-use patents for applying iprodione against nematodes.

• Nematicide · 2010

  Enclosure

  Enclosure was the United States market name associated with DevGen's iprodione nematicide program. It received approval in May 2010 for use in commercial peanut production, extending DevGen's crop-protection activities into the American market.

• Agricultural biotechnology platform · 1997

  RNA-interference crop technology

  DevGen's foundational technology platform applied RNA interference to nematodes and crop-protection research. The company commercialized this capability through licensing, partnerships and technology out-licensing, including an arrangement with Syngenta for potential sprayable RNAi-based crop-protection products.

• 2012

  Accept Syngenta acquisitionM&A

  Background

  Syngenta had entered an agreement to develop sprayable RNAi-based crop-protection products using DevGen technology and identified DevGen's rice and RNAi capabilities as strategically important.

  Action taken

  Syngenta placed a €403 million offer to acquire DevGen.

  Aftermath

  The offer led to delisting activity in 2013 and culminated in Syngenta's completion of the acquisition in December 2013.

  Acquisition offer. €403 million (September 2012)

  Source

• 2009

  Expand Monsanto technology rightsStrategy

  Background

  The companies decided to broaden their original technology-sharing relationship.

  Action taken

  Monsanto received wider rights to use DevGen technology in exchange for a reported €20 million cash payment.

  Aftermath

  The arrangement provided additional partnership funding and increased the strategic value of DevGen's technology platform.

  Cash payment. €20 million (2009)

  Source

• 2008

  Reduce pharmaceutical activitiesStrategy

  Background

  DevGen had originally pursued pharmaceutical target discovery alongside agricultural biotechnology.

  Action taken

  The company announced plans to separate its pharmaceutical division and dismissed 19 pharmaceutical employees.

  Aftermath

  DevGen concentrated its remaining workforce and resources on agriculture; former pharmaceutical employees later founded Amakem NV.

  Source

• 2007

  Prioritize rice and small cereal grains in Monsanto collaborationStrategy

  Background

  DevGen and Monsanto agreed to share technologies while dividing development priorities by crop group.

  Action taken

  DevGen directed the shared work toward rice and other small cereal grains, while Monsanto focused on corn, cotton and soybeans.

  Aftermath

  The agreement strengthened DevGen's agricultural focus and preceded its acquisition of Monsanto seed businesses in several Asian markets.

  Source

• 2007

  Acquire Monsanto seed subsidiariesM&A

  Background

  DevGen sought to expand from biotechnology research into commercial seed development and distribution.

  Action taken

  It acquired Monsanto subsidiaries in India, Pakistan and the Philippines that sold hybrid seed for rice, sunflower, sorghum and pearl millet.

  Aftermath

  The transaction gave DevGen a broader commercial presence in South and South-East Asian agriculture.

  Acquisition price. $26 million (2007)

  Source

1. 1DevGenen.wikipedia.org