Devgen announces the intention to close its pharma division and to fully focus on the development of its agro business

07-Nov-2008 - Belgium

In November 2007, Devgen announced its intent to divest its pharma unit in order to focus on its agro-activities. Through its research activities in Belgium, Devgen has developed a unique technology position in crop protection and has grown to a fully integrated trait and seed business in Asian growth markets, with a focus on rice, sorghum, sunflower and pearl millet and a licensing business in other crops. Devgen's pharma division focuses on the development of a novel class of preclinical drug candidates for the treatment of inflammatory diseases.

Devgen took this decision to offer its promising agro division the maximal growth opportunities. Both divisions require substantial investments and in this stage of their development do not have synergies any longer. The pharma activities furthermore carry a substantially higher risk profile, according to the company.

During the past year the company has continued its investments in its pharma programs and substantial efforts were made to divest the pharma division. In the deteriorating financial and investment climate, potential candidate investors (venture capitalists, biotech- and pharma companies) have become more risk averse, independent of the quality of the pharma programs. This has thwarted Devgen's divestment process. Devgen therefore decided to no longer invest in the development of its pharma programs and to initiate the dismissal of the 19 employees of its pharma division. Today, 217 people are employed by the Devgen group worldwide.

In line with this strategy Devgen will focus its available resources on its agro activities. The company's activities in Ghent include, furthering its key technologies (RNAi for crop protection, trait development and molecular breeding), bringing its candidate nematicide to market, and the IP and business coordination of its growing trait and seed business in India and in South-East Asia.

https://www.bionity.com/en/news/89268/devgen-announces-the-intention-to-close-its-pharma-division-and-to-fully-focus-on-the-development-of-its-agro-business.html