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7-Business: Ecogen aquires Mycogen's Bt products



-------------------------- GENET-news ---------------------------

TITLE:  Ecogen to aquire Mycogen¹s Bt bioinsecticide product line
        from Dow
SOURCE: Ecogen Press Release, edited by AGNET, Canada
DATE:   December 22, 1999

----------------- archive: http://www.gene.ch/ ------------------


Ecogen to aquire Mycogen¹s Bt bioinsecticide product line from
Dow

LANGHORNE, Pa. -- Ecogen Inc., a leading developer of
environmentally friendly, microbial biopesticides, today
announced that it has signed a letter of intent with Mycogen
Corporation; an affiliate of Dow AgroSciences LLC to acquire its
sprayable Bt biopesticide product line. The letter of intent
contemplates that Ecogen will pay $0.5 million in cash and the
balance in Ecogen common stock valued at market price at the time
of closing. Mycogen's Bt bioinsecticide business recorded sales
of approximately $4.0 to $5.0 million.

The proposed transaction includes the purchase of Mycogen's Bt
bioinsecticides, U.S. federal and state registrations, foreign
registrations, trademarks, existing product inventories and a
technology license to certain of Mycogen's proprietary genes and
strains for microbial biopesticides. All Bt products included in
the agreement utilize Mycogen's proprietary CellCap(R)
technology. CellCap is a system for encapsulating Bacillus
thuringiensis insecticidal proteins in Pseudomonas fluorescens to
prolong the activity of the proteins against targeted insect
pests.

Closing of the transaction is conditional upon obtaining the
necessary approvals and the negotiating and signing of a
definitive agreement. The transaction is expected to close by
January 31, 2000. Under a separate distribution agreement, Ecogen
will begin distributing these products January 1, 2000. Dow will
manufacture the products for Ecogen under a five-year
supply agreement. Additionally, it is anticipated that Ecogen
would grant to Dow exclusive distribution rights for the sale and
distribution of the acquired products in Mexico, New Zealand and
Australia.

"Mycogen's Bt bioinsecticide business reinforces and broadens
Ecogen's leadership in the area of novel biopesticides," said
James P. Reilly, Jr., Ecogen's Chairman and Chief Executive
Officer. "This product line also adds an aqueous formulation to
complement our existing water dispersible granule formulation.
The addition of these patented products and toxin genes from
Mycogen, combined with our extensive Bt toxin gene portfolio,
will enable Ecogen to continue to meet customer demands for pest
control with the added assurance of environmental compatibility."
Bacillus thuringiensis (Bt) is a naturally occurring soil
microorganism that produces proteins that are toxic for certain
insect pests. 


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