Company Energy (NRGene), which operates in the field of plant and food enhancement through artificial intelligence, reported achieving a significant milestone in a project to develop and enhance tomato seeds with TobRFV virus-resistant properties (ToBRFV). The company’s share is climbing about 6% on the local stock exchange in response to the announcement.
The company has already signed commercialization certificates for the durability feature, in a model based on intellectual property development in exchange for royalty income. This means it can already sell to customers, who can on their side start sowing.
Energy began trading on the Tel Aviv Stock Exchange in January last year, ending 2021 with a drop of over 60%. “Since we started trading, we have already reported on some significant deals, which we could only dream of a year back. We are pleased with the process we went through.” He added that “We have seen a lot of issues in the past that after being cut, they soared. “Patience will pay off, because that way people will realize which of the companies brought real value with it.”
“The solution will affect the prices and quality of tomatoes”
Energy noted that it has completed a significant step that includes identifying a unique region in the genetic sequence of the plant, which is a source of the trait of the tubamo virus. The identified area will allow the company to continue the process of developing the durability feature. It was further stated that as of the date of this report, the company is in the process of protecting the durability feature through a patent.
Energy has a series of commercial agreements with seed companies to commercialize seeds resistant to the tubamo virus in exchange for receiving royalties from the sale of the varieties and seeds. Under these agreements, Energy will be entitled to royalties for 10 years, starting from the date on which the seed companies trade in seeds containing the durability trait. According to Energy, the revenue from each of the agreements will reach millions of dollars, if the development phase is completed successfully and the company reaches the implementation and commercialization phase.
Energy’s artificial intelligence tool is used to analyze genetic information in order to streamline and accelerate plant and animal improvement processes. The technology enables accelerated development of crop-intensive varieties, resistant to diseases and extreme climatic conditions, and with a healthier nutritional composition. According to the company’s report, its solution has been proven in more than 280 projects with about 100 customers worldwide.
Founder and CEO Dr. Gil Ronen said, “The global tomato seed market is estimated at $ 1.1 billion, and Energy is currently the only company trading natural durability that will allow seed companies to sell virus-resistant tomato seeds to farmers. This is significant news for agriculture and the world food world. “That will have a positive effect on the prices of tomatoes and their quality. Upon completion of the development, we are expected to enjoy royalties in the amount of millions of dollars from each agreement.”