Shares digital

Hot on the heels of a deal with global agricultural firm Monsanto Company, Plant Health Care (PHC:AIM) has struck lucky once again after Bayer CropScience confirmed it would move forward with the second year of Myconate testing.

Myconate is Plant Health Care’s wonder growth product which helps crops to develop larger effective rooting volume, often leading to improved yield. Bayer CropScience and Plant Health Care entered into a ten-year agreement last January to develop new seed treatment solutions based on the Myconate technology in combination with Bayer CropScience’s seed treatment products. Bayer CropScience will now be making a milestone payment to Plant Health Care for the continuation of the cooperation into the second year.

The two companies will be working on the further development of Myconate as a seed treatment product in corn, soybean, cotton and sunflower on a global basis. In addition, thanks to encouraging results last year on cereals, Plant Health Care has reached agreement, on a non-exclusive basis, with several large multi-national agrochemical/seed companies to move forward this year with testing and potential commercialisation of Myconate in cereal grain crops. This includes crops such as wheat, barley, sorghum and oats.

The good news came as the company reported that turnover for the year ended 31 December 2007 is expected to be up 35% on the year before, at $18.4 million. However, a marginally higher than expected operating loss of $4.4 million is likely due to the delay of an important Harpin deal, which is now expected to be completed in the first half of 2008. Shares in Plant Health Care have rallied since they were tipped as a Shares Play of the Week at just 54p back in 2005 (Shares 25 August ‘05) and currently sit around the

281p level.

Shares says: With crop growth under greater threat due to changing weather patterns, the potential for this technology remains huge.