MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF) CEO Corey Giasson joined Proactive to chat about the company’s transition to commercialization from its R&D focus.
He noted the commercialization of its biofertility product TerraSante, which has gained momentum in key US states.
The CEO also discussed MustGrow’s partnership with Bayer, which involves a commercial licensing agreement for their soil biopesticide TerraMG.
Proactive: Some news today, talking in essence about what's going on within the company and what's happened and what's still to come. Lots of stuff has been going on. Is that really the message you want to tell everyone, that you've got just a lot of things in place now to really start to see the growth for the company?
Corey Giasson: This pipeline update, we do it annually. We wanted to basically highlight the fact that this company is evolving from being an R&D company to a commercialized company. We started that process last year, and we're well on our way. In the initial phases of commercialization, we have product sales happening right now of TerraSante, our bio fertility product, in the U.S. We're hoping to see a sales ramp-up starting next year, 2025, and then into 2026.
And then, you know, commercialization with Bayer – we signed a commercial licensing agreement in December of last year. We give an update on the progress that we're having there on the soil biopesticide they've registered in Europe, the Middle East, and Africa.
Let’s talk about TerraSante first, because as you mentioned, you've gotten approval in a number of states in the US and very key states as well. And you've got a couple of people within the company that are going to be sort of leading that charge going forward.
Yes. We've got registrations in key states, and we're hoping to have more registrations to come in other key states. If you think of the US, think about the western seaboard, across the south, and then up the eastern seaboard. Those are the states we're targeting for the high-value fruit and vegetable growers. That's where we think TerraSante fits the best.
The individuals you're talking about, Tim and Mike, have a lot of experience in this industry – probably about 60+ years combined. They've got key connections, and we're utilizing them to help market the product, show it to farmers, and let the farmers test it. They're testing it now, and with success, we hope to generate more sales, which are already happening. Next year, we aim to ramp up sales further. We're going direct to large companies that are producing the fruit and vegetables we eat here in Canada.
Let’s move on to TerraMG. Obviously, it's working in North America, but you also have a deal with Bayer. That is really to get penetration into the European market as well. So, the company is becoming a global entity, right?
Yes, Bayer is an excellent partner to have. It's been a great relationship, and we look forward to fostering that over the coming years. For TerraMG, our soil biopesticide, we're working on registrations in Canada and the US on our own because it's easier for us in North America. For Europe, the Middle East, and Africa, that's why we partnered with Bayer on the commercial licensing agreement.
We estimate that they'll be spending about $30 million to $40 million USD in upfront and milestone payments. In addition, Bayer will be investing in the product registrations across those regions. That's something we couldn't do on our own. They've got the experience and the boots on the ground to make it happen, and we’re excited about what the future holds.
Bayer is going to be involved in the biocontrol industry meeting in Basel at the end of October. That sounds like a great opportunity for them to penetrate further into the market and engage with their established relationships.
Yes, it's an important industry conference on the biocontrol side. It's an excellent opportunity for us to meet various companies. We've been there for the last few years, and we'll be there again this year. It’s also a great chance for us to have face-to-face meetings with our commercial partners like Bayer.
Lastly, I know that we've been talking over the last few years, and where you were then compared to now must seem like light speed ahead. It's been a lot of work, but it seems like MustGrow is in a strong position now, with significant news flow expected this year and real growth set for 2025.
Yes, I hope so. It's been a great year or two. The commercialization process takes a lot of work, but we’re hopeful and aiming for significant penetration in the coming years. Our focus is on fostering commercial agreements, signing more deals, and driving sales of our commercial products. While we're still an R&D and IP-driven company, commercialization is going to be key for us moving forward.
Quotes have been lightly edited for clarity and style