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(Alliance News) - Plant Health Care PLC on Monday said it has signed a long-term production and supply agreement with an unnamed Europe-based fermentation company, for the manufacturing of Harpin-based products.
Under the deal, the North Carolina, US-based agricultural products firm has secured the low-cost production capacity of Harpin aB, the active ingredient in its ProAct, Employ and H2Copla products.
As volume production cost targets are met, Plant Health Care expects to see an improved gross margin and an attractive return on investment for customers.
The company will continue the manufacturing of PREtec peptides within the same facility in support of new product regulatory filings and commercialisation of PREtec-based products.
"I am pleased to move our product manufacturing to a high-quality facility in Europe that has both the experience and capacity to meet our current product volume requirements as well as projected future increased demand for our Harpin aB products and the PREtec product portfolio, including Saori. By eliminating the need to pay certain import tariffs and other costs, gross margin is expected to improve for our Harpin aB business beginning in 2023," said Chief Operating Officer Jeff Tweedy.
Shares in Plant Health Care were up 0.9% at 10.34 pence on Monday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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