Syngenta and Diversa form extensive research and product development alliance
Syngenta and Diversa today announced they have formed a broad collaboration to establish a shared biotechnology research platform and to discover products. Diversa is to acquire certain technology rights from Syngenta for pharmaceutical applications, in exchange for equity. The transaction will strengthen the research capabilities of both companies.
Research and product development alliance
* Syngenta and Diversa will combine their research activities in genomics and related technologies for new plant science applications, as well as for selected antibody generation and other biopharma product development.
* Syngenta will enter into a renewable research contract with Diversa for an initial commitment of $118 million over seven years to be invested in products in Syngenta's chosen fields; Diversa will receive milestone payments and royalties on products developed.
Technology transaction
* Diversa will acquire an exclusive, royalty-free perpetual license from Syngenta for gene technology and intellectual property, including proteomics, metabolomics, RNA dynamics, fungal technologies, and bioinformatics, for use in the pharmaceutical field, as well as related assets.
* In exchange, Diversa will issue to Syngenta stock and warrants representing 14% and 3% respectively of Diversa's outstanding stock pro forma for the equity issuances, increasing Syngenta's ownership to over 18%. The warrants issued to Syngenta are exercisable for ten years starting in 2008 at an exercise price of $22.
Syngenta will relocate its plant genomics programs, including its pioneering work with the rice genome, from the Torrey Mesa Research Institute (TMRI) in La Jolla, California to Syngenta Biotechnology Inc. (SBI) in Research Triangle Park, North Carolina. It is expected that the majority of employees will be relocated to Diversa or SBI.
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