Intrexon Corporation (NASDAQ: XON) announced Monday that it entered a strategic licensing agreement with Surterra Wellness to utilize its plant propagation platform, Botticelli. Surterra will use Intrexon’s technology for the production of specific cannabis cultivars in the Florida market.
Botticelli is Intrexon's next-generation tissue culture technology that aims to replace cloning while improving downstream processes and products. The company touts the technology's ability to rapidly multiply plant lines to offer more control of inventory, in addition to eliminating disease risk in clones.
The agreement is a two-stage collaboration. In the first stage, Botticelli will calibrate to Surterra’s cannabis cultivars for improved optimization. In the second stage, Surterra will use the technology to generate cannabis plantlets for its products while likely increasing production capabilities.
Per the agreement’s terms, Intrexon will be entitled to Surterra’s royalties from Surterra’s Botticelli plantlet usage.
Why It’s Important
Sekhar Boddupalli, Phd, president of INtrexon's ag biotech division, said partnering with Surterra expands Intrexon's U.S. customer base.
"Surterra's footprint in the U.S. includes the growth, cultivation and retail sales of its brands in Florida, Texas, Nevada and in short time in Massachusetts and California," Boddupalli said in a statement. "The company's expertise and best practices provide a distinct advantage as we optimize Botticell for its application to cannabis."
William "Beau" Wrigley Jr., chairman and CEO of Surterra Wellness also touched on the collaboration's significance.
"Applying the Botticelli-platform approach to our current plantlet production will improve our (cultivation) efficiency and consistency and will help ensure superior product integrity and higher yields in our facilities."
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