LONDON (ShareCast) - (Sharecast News) - Plant Health Care announced on Tuesday that its new 'PREtec' product, PHC68949, has received the first stage of regulatory approval for commercial use in Brazil.
The AIM-traded firm said the Brazilian Ministry of Agriculture, Livestock and Food Supply (MAPA) accepted the submitted studies demonstrating the efficacy of PHC68949, and approved conditions for its use for soybean cultivation in Brazil.

It described PHC68949, also known as 'Vaccine for Plants', as a novel technology that amplifies a plant's natural defence against damaging nematodes.

Nematodes are microscopic parasitic worms living in the soil, PHC explained, where they feed on plant roots, killing plants and reducing crop yields.

It added that nematodes were estimated to cause up to 12.3% of annual crop loss globally, worth about $157bn per year.

The PHC68949 application was submitted for regulatory approval to MAPA in December, for use as a seed treatment for the control of root-lesion nematode, or pratylenchus brachyurus, in soybean.

For 2022-2023, the soybean harvested area in Brazil was forecast to be 42.9 million hectares.

Results from field studies showed PHC68949 could provide control of harmful nematodes, comparable to the traditional chemical nematicides and superior to current biological products.

The Brazilian authorities would now evaluate the application, which would be reviewed by the Brazilian Health Regulatory Agency (ANVISA) and the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA).

While the authorities had not committed to a specific timeline for granting regulatory licences, the company said it anticipated regulatory licences would be granted within the next one to two years.

After its initial launch for use in soybeans, the firm said it was planning to introduce PHC68949 in other crops in Brazil.

According to a recently-published report by Kynetec, the use of nematicides in Brazil had increased tenfold since 2015, with soybeans accounting for 52% of the use, followed by sugarcane at 23%, with the remainder on corn, cotton, coffee, potatoes, and 14 other crops.

PHC said its target was to launch at least one PREtec product in a major market each year as part of its overall strategy to achieve revenue of $30m by 2025, through both the launch of new peptides and expanding current and future distributor relationships.

"Today's announcement marks a significant milestone in fulfilling our strategic objectives to launch transformative commercial PREtec products across substantial growth markets such as Brazil," said chief executive officer Jeff Tweedy.

"As the issue of food security continues to grow, and the farming world looks for technological solutions to achieve a sustainable future with better crops delivering higher yields and reducing environmental effects, our PREtec products will help meet global sustainability targets."

At 1326 BST, shares in Plant Health Care were up 8.82% at 10.99p.

Reporting by Josh White for Sharecast.com.

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