Corporate Banner
Satellite Banner
AgriGenomics
Scientific Community
 
Become a Member | Sign in
Home>News>This Article
  News
Return

Devgen NV - Business Update

Published: Thursday, November 08, 2012
Last Updated: Thursday, November 08, 2012
Bookmark and Share
Company has issued its three-month financial results.

Devgen nv has issued a business update and its three-month financial results for the period ending 30 September 2012.

Business highlights - Q3 2012

• On 21 September 2012, Syngenta has announced its intention to launch a public voluntary offer to acquire all outstanding shares and warrants of Devgen at a price of € 16.00 in cash per share. The intended bid represents a total consideration for the company of around € 403 million.

Devgen’s board of directors unanimously supports the offer. The board will provide its formal response to the proposed takeover bid in a memorandum that will be included in the bid prospectus. For full details of the bid, Devgen refers to the prospectus document that will be publicly available after approval by the FSMA.

• During the reported period, Devgen made progress with the implementation of its strategy:
- The development of Devgen’s program to create the next generation of hybrid rice remained on track, with seed production research and performance trials continuing as planned.
- In India, the third quarter showed exceptionally high sales of Devgen’s hybrid pearl millet seeds following the late arrival of the Monsoon rains and farmers buying their seeds closer to the actual rain period. Devgen’s novel hybrid sorghum seed adapted to the Rabi season in India also performed strongly and well in line with expectations.
- In the Philippines, preparations were made to launch Frontline Matibay™, a robust hybrid rice seed suited for the wet and dry season. This seed is characterized by long, slender grains and early maturity. It is now being sold for use in the coming dry season.
- In Indonesia, Devgen and the government owned seed company SHS obtained registration of a third top performing rice hybrid, DG 5 SHS, a seed particularly well adapted to the tropical climate. Both companies already sell two premium hybrid rice seeds that have established a good track record with the Indonesian farmer.

Financial highlights - Q3 2012
• Seed revenues increased 60% to € 2.3 million compared to € 1.4 million in Q3 2011.
• Research and development income decreased to € 0.5 million in Q3 from € 3.2 million in the same period last year, following the completion of the agreement with Monsanto Company in October 2011.
• As a result of lower R&D income, overall revenues fell to € 2.8 million compared to € 4.6 million last year.
• EBITDA for the reported three months amounted to € -3.6 million compared to € -1.5 million over the same period last year.
• Devgen ended the third quarter with a strong cash position of € 54.1 million (including € 5.6 million restricted cash), compared to € 33.9 million at the end of June 2012. This increase stems from the receipt of the upfront payment by Syngenta of € 22 million as agreed in the recent license and research partnership for RNAi-based sprayable insect control solutions.

Thierry Bogaert, CEO of Devgen, said: “Devgen's next generation hybrid rice seeds in India and the Philippines again delivered excellent trial results in the 2012 rainy season. Our long-term investment in a bottom up redesign of hybrid rice to deliver higher yield and quality is clearly paying off.”

Outlook full year 2012
• Devgen expects to end the year with an increase in revenues from sales of seeds resulting from its own production and technology (rice, sorghum, pearl millet and sunflower), with a significant growth of sales of hybrid rice and sorghum seeds.
• Research and development service revenues are expected to decline as previously communicated. Devgen will start to recognize revenue from the Syngenta partnership when the joint development activities start in April 2013.
• The cash position at year end is expected to be largely sufficient to finance the development of Devgen for several years.


Further Information
Access to this exclusive content is for Technology Networks Premium members only.

Join Technology Networks Premium for free access to:

  • Exclusive articles
  • Presentations from international conferences
  • Over 2,500+ scientific posters on ePosters
  • More than 3,700+ scientific videos on LabTube
  • 35 community eNewsletters


Sign In



Forgotten your details? Click Here
If you are not a member you can join here

*Please note: By logging into TechnologyNetworks.com you agree to accept the use of cookies. To find out more about the cookies we use and how to delete them, see our privacy policy.

Related Content

Devgen Receives a Tender Offer from Syngenta
Syngenta to acquire all shares of Devgen at a price of €16 in cash per share.
Monday, February 04, 2013
Devgen and Syngenta Enter Insect Control Research Partnership
License to access novel insect control technology.
Monday, October 22, 2012
SHS and Devgen Obtain Registration Approval for DG 5 SHS in Indonesia
Sales of new premium hybrid rice seed to start from fourth quarter of 2012.
Monday, August 06, 2012
Devgen Appoints a New Independent Director of the Board
Appointment of Mrs. Ruth Devenyns as independent director for two years.
Monday, June 04, 2012
Devgen Reports 2011 Full Year Results
Company provides business update and results for twelve month period ending 31st December 2011.
Monday, March 12, 2012
Devgen NV Successfully Completes a Private Placement for a Total Amount of € 26.8 Million
The shares were placed at a price of € 5.85 per share, which is at least equal to the 30 day average price, in compliance with Belgian Company Law.
Tuesday, May 03, 2011
Devgen Appoints Cheminova as Distributor in Southern Europe for its Nematicide Devguard®
Signing of agreement for distribution of Devgen's nematicide Devguard® in Spain, Italy, Greece and Portugal, for use on vegetable crops cultivated in greenhouses.
Sunday, April 10, 2011
Devgen and PT (Persero) Sang Hyang Seri sign memorandum of understanding on the introduction of biotech rice in Indonesia
Devgen and PT (Persero) Sang Hyang Seri (SHS) herewith further strengthen their relationship. The companies have already ongoing agreements for R&D, production and distribution of non-transgenic hybrid rice in Indonesia.
Friday, June 25, 2010
Devgen and PT Sang Hyang Seri Sign MoU on the Introduction of Biotech Rice in Indonesia
Both the companies further strengthen their ongoing agreements for R&D, production and distribution of non-transgenic hybrid rice in Indonesia.
Friday, June 18, 2010
Devgen Broadens its Services to the Indian Farmer Community by Accessing a new Distribution Channel
Devgen promotes yield increases for four major food crops in India through an increased adoption of premium quality hybrid seeds.
Monday, April 26, 2010
Scientific News
Marijuana Genome Unraveled
A study by Canadian researchers is providing a clearer picture of the evolutionary history and genetic organization of cannabis, a step that could have agricultural, medical and legal implications for this valuable crop.
Grape Waste Could Make Competitive Biofuel
The solid waste left over from wine-making could make a competitive biofuel, University of Adelaide researchers have found.
Accelerating Forage Breeding to Boost Livestock Productivity
International expert skill-sets in genomics and bioinformatics enhance our capacity to breed improved forages for Africa.
Firefly Protein Enables Visualization of Roots in Soil
A new imaging tool from a team led by Carnegie’s José Dinneny allows researchers to study the dynamic growth of root systems in soil, and to uncover the molecular signaling pathways that control such growth.
So Long, Snout
Research helps answer how birds got their beaks.
The Tree of Life — More Like A Bush
New species evolve whenever a lineage splits off into several. Because of this, the kinship between species is often described in terms of a ‘tree of life’, where every branch constitutes a species.
Algae Nutrient Recycling is a Triple Win
Sandia method cheaper, greener and cuts competition for fertilizer.
Non-Transgenic Rapeseed Product Launched For Chinese Market
Cibus and Rotam have announced a new agreement to cooperate in the development of herbicide-tolerant rapeseed in China.
TGAC Leads Development to Diminish Threat to Vietnam’s Most Important Crop
Advanced bioinformatics capabilities for next-generation rice genomics in Vietnam to aid precision breeding.
BESC Creates Microbe That Bolsters Isobutanol Production
Another barrier to commercially viable biofuels from sources other than corn has fallen with the engineering of a microbe that improves isobutanol yields by a factor of 10.
Skyscraper Banner

Skyscraper Banner
Go to LabTube
Go to eposters
 
Access to the latest scientific news
Exclusive articles
Upload and share your posters on ePosters
Latest presentations and webinars
View a library of 1,800+ scientific and medical posters
2,500+ scientific and medical posters
A library of 2,500+ scientific videos on LabTube
3,700+ scientific videos
Close
Premium CrownJOIN TECHNOLOGY NETWORKS PREMIUM FREE!