Natural pesticides business TyraTech (LON:TYR) announced this morning that it has won the latest round in a legal case the firm is involved in with Molecular Securities Incorporated.

TyraTech said that the State of New York Court of Appeals issued a decision on Octover 20 that denies Molecular’s request to appeal the May 26 2011 ruling by the New York Supreme Court in favour of TyraTech and against Molecular. This decision dismissed Molecular’s complaint in its entirety.

In November 2008, Molecular filed a complaint against TyraTech asserting claims for breach of contract and quantum merit. Molecular claimed it was owed US$2,760,470 for services it said it provided to TyraTech, as well as interest, lawyers’ fees and costs.

TyraTech said that it believes the Court of Appeals ruling will bring to an end any further litigation against the firm.

Yesterday, TyraTech announced that it had engaged Destum Partners, a US-based biopharmaceutical consultancy to assist it in seeking suitable partners for TyraTech’s natural head lice product. TyraTech’s head lice product uses its ‘Nature’s Technology’ approach and represents the firm’s first product entry in the personal health care market. The firm’s patented formulation uses combinations of natural plant oils.

Environmentally-friendly pesticides firm TyraTech (LON:TYR) announced this morning that some of its shares may now be eligible to have US trading restrictions removed.

The firm said that the removal of trading restrictions will mean these shares can be transferred to a new unrestricted trading line (LON:TYRU) and will be able to be settled (by means of depository interests) through the CREST electronic settlement system. Also, they can be sold in the US if their holders elect.

TyraTech currently has a total of 51,837,468 common shares, of which 51,124,400 are admitted to the Alternative Investment Market and trading under the symbol TYR in a restricted manner as permitted by Regulation S of the US’s 1933 Securities Act. All unrestricted shares are eligible for migration to, and trading on, the unrestricted TYRU line.

The company said it has sent letters to shareholders whose shares it believes should be eligible with instructions on how to migrate those shares to the TYRU line.

TyraTech develops and commercialises insecticide and anti-parasite products that incorporate what it describes as unique blends of natural active ingredients. The firm’s partners include pest control specialist Terminix International and Kraft Foods, with which it is collaborating on a functional food product.

During the first half of this year the company increased its revenue by 85 per cent to US$5 million, while its gross profit increased 400 per cent to US$3.5 million. Its loss before tax came in at US$0.5 million – a significant reduction on H1 2010 when its loss was US$3.1 million.

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Harry Norman: Hello. This is Harry Norman for Proactive Investors, and welcome to another Proactive audio interview. Today is the 20th September 2011 and I am talking with Alan Reade, Executive Chairman of TyraTech, listed on the AIM market chemical sector, stock ticker TYR, share price 33 pence, market cap £16.4 million. Web address: tyratech.com.

Alan, thank you very much for joining us for this interview.

Alan Reid: Well thank you Harry for inviting me. It’s nice to be speaking with you again.

Harry Norman: Please give investors a brief introduction to TyraTech, the company’s business strategy and value proposition to investors.

Alan Reid: TyraTech is a natural life sciences company which has a very important technology platform which allows us to develop natural based products, which enables us to enter some very key markets. One, functional foods, this is the control of internal parasites, in both humans and animals, and two, develop highly effective and very safe pesticides for use in sensitive areas: in and around the home, around children, around pets, in hospitals and so on.

Our platform allows us to develop products which are as effective, if not more effective, than the current synthetic chemicals that are on the market.

Harry Norman: On the 23rd August, TyraTech announced the registration of three insecticide aerosol products in Germany. What can you tell investors about TyraTech’s plans for the European marketplace?

Alan Reid: Well firstly this registration in Germany for the three aerosols - one is a flying insect product, the other is a wasp and hornet product and the other one a product to control crawling insects, cockroach and the like – these are the first of three countries that we expect to receive registration before the end of the year, the other two being the UK and France. Immediately following this, we’re currently putting applications in for another five products. So we will have a pesticide range of eight presentations, we hope available by the end of the first quarter of next year.

At the present we’re trying to articulate the strategy we will use in Europe. We’re talking to potential co-operators and we’re also looking at more direct methods such as internet and so on as a means to go into market. What it does mean is that we will establish a base in Europe during this last quarter of the year.

Harry Norman: TyraTech has a partnership focused on human health with Kraft Foods, a company with a market capitalisation of about $61 billion. What are the objectives of this partnership and what progress can you report, Alan?

Alan Reid: Well firstly I’m limited in what I can say about this project because of confidentiality agreements with Kraft. What I can confirm is that the goal of this partnership is to develop new functional foods to prevent the impact of intestinal parasites and to improve the quality of life of particularly young people in developing countries. We are very proud of this project in fact and we think it will receive a lot of attention in a year or so’s time.

Harry Norman: TyraTech has a strategic partner with the largest pest control company in the world, Terminix. What can you tell investors about the scope of this partnership, and what can you tell us about progress being made?

Alan Reid: Well, I’m afraid the first part of the answer is the same as with Kraft. Again because with Terminix the products will be Terminix brands, we are limited in what we can say, except to say that this is again a partnership that we’re very proud of and we’re very pleased with again. Terminix challenged us last year to use all our innovation to bring new products and new opportunities to the market for them. We rose to that challenge very well, and as you have seen from RNS and the like have received considerable milestone payments as reward. The Terminix partnership is a very important one to us and one that we think will develop into a very large arrangement in the coming years.

Harry Norman: What product development progress has TyraTech made over the last year?

Alan Reid: Well we’ve already spoken of some, in the area of functional foods the Kraft project is really going very well and development has been excellent. And in the development of new products we’ve been able to meet the challenges that were set to us by our friends at Terminix, which has allowed us also at the same time to develop a very effective product range to register and launch in to Europe. 

We’ve been working hard in other areas, particularly in animal health. We’ve started development of a functional food for dogs and cats. We’re well along the way with development of an ectoparasiticide for dogs and cats and for equine, for horses. We have another product that will be sold in the human area that I’ve not elaborated on. That will be an announcement probably at the end of this year or early part of next year.

So I’m very pleased and very excited with what our product development people have been able to provide us for the future.

Harry Norman: In 2011 TyraTech moved its business operations to North Carolina’s Research Triangle Park area. What can you tell investors about this move, Alan?

Alan Reid: We needed to move to an area with a thriving business environment and one that supports our culture of growth and innovation and RTP certainly does that. We wanted to have access to an array of talent, people that we can bring in to the organisation but also the best and the brightest that we can cooperate with outside of the organisation. And I’m really pleased to say we’ve only been here for five months, we’re already seeing excellent benefits to this move. I’m really pleased.

Harry Norman: In August you announced the results for the first half of 2011. Revenues increased 85%, gross profit increased by 2.8 million and your net loss decreased by 2.6 million to 0.5 million. What drove this significant improvement in TyraTech’s financial results?

Alan Reid: Okay. Really our improved performance was down to several factors. First the measures that we put in place last year to really get the company back on its feet and try and introduce financial stability and discipline. Secondly, and probably most importantly in fact, our product sales increased by over 100% and this was mainly due to the development of our relationship with Terminix in the US. In addition to the product revenue sales we received three milestone payments for the delivery of new innovative products to Terminix. What’s important to recognise about these new products of course is not the revenue that they bring this year, because quite frankly it will be zero or next to zero, but the future revenue of the stream that they are going to introduce.

Harry Norman: What can you tell investors about the company’s capital structure and financial situation going forward?

Alan Reid: TyraTech’s capital structure is really quite straightforward. We have approximately 51 million shares outstanding and we are debt free. We have ended the first half of 2011 with around $1.6 million of cash in hand and we expect to end 2011 with certainly a slightly higher cash balance. We believe that our growing relationship with Terminix and the new product supply will fund our development activities in to 2012. So we are pleased with the progress we have made as far as our capital structure’s concerned.

Harry Norman: What can the investment community expect from TyraTech over the next 12-18 months?

Alan Reid: Well in the medium term investors can expect to hear additional updates on our strategy for launching products and establishing our presence in the European market place. They can expect to hear an update on our partnership with Terminix, as well as the new product opportunities that we’ve developed with Terminix being articulated and announced to the market. They can expect to see more news on emerging products from our development pipeline, both in the human health category and in the animal health category.

Harry Norman: Remember Proactive Investors is not an investment advice service. Make sure you register at proactiveinvestors.co.uk for our weekly newsletter which will keep you informed about our articles, interviews and events. Thank you for listening.

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Environmentally-friendly pesticides firm TyraTech (LON:TYR) announced this morning that it has received registrations in Germany for three of its aerosol products.

The firm added that it expects further registrations for the products – Crawling Insect Killer, Flying Insect Killer and Stinging Insect Killer – to take place in both the UK and France during the coming months.

“We have started to make contact with potential partners and expect to launch in 2012,” said Alan Reade, TyraTech’s executive chairman. “These unique products will mean that the consumer will not have to compromise efficacy for safety in their home and around their family.  We are excited that we will now be able to start to build the TyraTech presence in Europe"

Almost two weeks ago, TyraTech announced first-half results that showed its revenues increased 85 per cent to US$5 million during the six months to the end of June, while its gross profit increased 400 per cent to US$3.5 million. Its first-half pre-tax loss was reduced from US$3.1 million to US$0.5 million.

TyraTech’s current partners include pest control specialist Terminix International, to which it sells a number of products, and Kraft Foods, which it is collaborating with on a functional food project.

In early trading this morning, TyraTech’s share price was unchanged at 31 pence.

TyraTech (LON: TYR) managed to reduce its loss last year after an increased focus on cost control.

The US-based company – which develops technologies based on nature to kills insects and parasites so that crops and animals can be protected in an environmentally-friendly way – saw its 2010 pre-tax loss fall to US$6.1 million (2009 : US$13.9 million).

The firm’s revenue decreased during the year – to US$4.6 million from US$6.4 million in 2009 – but the 2010 results did not include US$3.5 million in additional deferred revenue that, although received in 2010, will be recorded as revenue in future periods.

TyraTech said that significant progress was made during the period with its partner Terminix – North America’s largest pest control company. A new product supply agreement with the firm brought with it a significant upfront payment to TyraTech, which was received in October last year.

Terminix and TyraTech are now working together to develop and market new pest control products that incorporate TyraTech’s ‘Nature’s Technology’.

For each of six new products developed, TyraTech is receiving development milestone payments from Terminix. The firm already announced the successful development of three new products in February 2011 and it received milestone payments for these.

TyraTech’s ongoing legal battle with Molecular, which alleged in 2008 that it was owed some US$2.8 million by TyraTech for advisory services, looks to be nearing a conclusion. On 26 May the New York Supreme Court entered a judgment in favour of TyraTech that dismissed Molecular’s complaint in its entirety, although this ruling may be appealed by Molecular.

After raising US$4.8 million through share issues, the firm had cash and cash equivalents of US$3.3 million on its balance sheet at the end of 2010.

The former PricewaterhouseCoopers accountant joins from Albany Molecular Research, a pharmaceuticals and drug research company with revenues of more than US$200 million and which employs 1,300 people.

Initially at AMRI Jerome was the director of finance and corporate controller, though for the past three years has been in charge of investor relations and financial planning.

Chairman Alan Reade said: "Peter joins us at an important time in the development of the company and we are confident that Peter's experience will bring an important new dimension to TyraTech and we look forward to him joining the team."

TyraTech is an eco-tech pesticide developer that puts “nature to work”. The company develops and commercialises insecticide products that incorporate unique blends of natural active ingredients. 

Its products are gaining traction with a blue-chip and influential client base including Terminix, the world’s largest pest control company.

Last autumn it signed an enhanced agreement with the American giant, which will use the company’s green and human friendly pesticides in the US, Canada and Mexico, which will run until 2017.

The deal follows a “significant re-order” contract from Terminix for its SafeShield natural insecticide unveiled earlier this month.

The American group has a massive network and provides services to over 3 million residential and commercial customers in 45 US states and in 14 countries internationally.

The consumer market for pesticides is estimated by the company to be worth more than $19bn. This market is multi-segmented and includes: home lawn and garden; institutional (business and government); the control of intestinal parasites and skin infestations in humans and pets; and mosquito and vector control.

The agricultural market for pesticides is estimated at $14bn. This includes the control of intestinal parasites and skin infestations within farm animals, as well as the control of pesticides in agriculture and horticulture.

The agreement with Terminix means the American giant will market the company’s green and human friendly pesticides in the US, Canada and Mexico. The deal will run until 2017.

Financial details were not revealed. However TyraTech said it will receive a “significant upfront payment” as well as milestone payments as products are developed and launched.

Chairman Alan Reade said: "TyraTech continues to be committed to working with influential partners who share our vision of innovative approaches to meet the growing market demand for safer and more responsible control of domestic insects.  

“Our extended relationship with Terminix is a strong endorsement of how these relationships can successfully work.

"As the largest insect control company in the world, Terminix has been an ideal partner for TyraTech with access to multiple marketing channels in the US.  

“Furthermore, Terminix shares TyraTech's corporate vision to build new brands that are safe and effective. 

“We are delighted with this new supply agreement, which accelerates our movement into the professional pest control marketplace with a strong partner that gives our products continued access to Terminix customers and other key channels and importantly provides us with significant financial returns, immediately and over the duration of the contract through milestone payments.

"In summary the signing of the new seven year agreement is a material step in the commercialisation of TyraTech's technologies and will significantly enhance the financial position of the company both in the near term and into the future as new products are commercialised."

The deal follows a “significant re-order” contract from Terminix for its SafeShield natural insecticide unveiled earlier this month.

The American group has a massive network and provides services to over 3 million residential and commercial customers in 45 US states and in 14 countries internationally.

TyraTech, meanwhile, has developed a series of products from its proprietary natural ingredients that have been engineered to deliver powerful insect control that is safe for use in homes.

TyraTech has been asked to supply more of its SafeShield product, a natural insecticide. Details of the order were not revealed.

Chairman Alan Reade said: "We are delighted to announce this significant reorder from Terminix for the Terminix SafeShield product. 

“The order is a step change in product volume sales for TyraTech and builds on the success of the product in the US residential and commercial pest control markets. 

“The increased use of Terminix SafeShield is consistent with the increasing trend in the US for eco-conscious pest control and we look forward to updating shareholders on progress with the development of new products to satisfy this market."

TyraTech has a powerful ally in Terminix, which is the world’s largest pest control firm.

It provides services to over 3 million residential and commercial customers in 45 US states and in 14 countries internationally.

TyraTech has developed a series of products from its proprietary natural ingredients that have been engineered to deliver powerful insect control that is safe for use in homes.

Terminix president Tom Brackett said:  "As the world's leading pest control provider, we work hard to identify and provide the most effective solutions to meet our customers' needs.  

“Terminix SafeShield has received high satisfaction ratings from our customers  and we are very pleased with how it has worked with our pest control services to provide them Terminix Ultimate Protection.  

“We are optimistic that our partnership with TyraTech will continue to provide our organisation with opportunities to bring unique solutions to our customers.”

TyraTech reported full-year results In June, saying that whilst difficult, 2009 had been a year of significant progress, giving it a solid platform for future growth and revenue generation.

Product revenues increased from US$1 million in 2008 to US$2.9 million, while total revenues climbed from US$5.9 million to US$6.6 million. Net loss declined from US$17.4 million to US$13.9 million as operating expenses fell 30% to US$14.2 million and R&D (research and development) costs declined from US$5.3 million to US$4.4 million.

The group is engaged in development and commercialisation of proprietary insecticide and parasiticide products. TyraTech reported full-year results last month, saying that whilst difficult, 2009 had been a year of significant progress, giving it a solid platform for future growth and revenue generation.

Product revenues increased from US$1 million in 2008 to US$2.9 million, while total revenues climbed from US$5.9 million to US$6.6 million. Net loss declined from US$17.4 million to US$13.9 million as operating expenses fell 30% to US$14.2 million and R&D (research and development) costs declined from US$5.3 million to US$4.4 million.

The 2009 highlights included the launch of Terminix SafeShield for the consumer markets, the production of the first crop protection product SHOOTER in TyraTech’s partnership with Arysta and a product development agreement with Clarke Mosquito Control.  The company is currently in advanced stages of developing a new product for the equine market, which will protect horses and riders from flying biting insects. A commercial arrangement with a specialist equine supplier in North America is expected to be concluded during this year.