BioHarvest Sciences Inc. (NASDAQ:BHST) said on Thursday it has entered into a strategic CDMO agreement with Saffron Tech to develop and commercialize saffron-derived botanical compounds using its patented Botanical Synthesis platform.
The companies plan to develop both solid-phase and liquid-phase formulations simultaneously.
Under the agreement, Saffron Tech will own 75% of the developed saffron compositions and related intellectual property, while BioHarvest will retain 25%.
Founded in 2020, Saffron Tech has pioneered year-round cultivation of top-grade saffron, a spice that can retail for more than $10,000 per kilogram due to its labor-intensive harvesting and limited geographic supply, primarily from Iran.
BioHarvest’s Botanical Synthesis platform enables the scalable production of plant-based molecules without growing the plants themselves.
The collaboration moves to scale production of one of the world’s most valuable botanicals in saffron. Saffron production has traditionally been concentrated in Iran, Spain, and Kashmir, making it vulnerable to climate change and supply disruptions. BioHarvest said the collaboration could transform saffron ingredient manufacturing into a precision-controlled, cell-based process, ensuring consistent quality and reduced environmental impact.
“This collaboration with Saffron Tech represents a perfect example of how our Botanical Synthesis platform can redefine the economics and accessibility of high-value botanicals,” said Dr Zaki Rakib, chairman and head of BioHarvest’s CDMO division. “We will leverage our technology to produce saffron’s bioactive compounds consistently, economically, and sustainably — eliminating the need for large-scale cultivation and geopolitical dependencies.”
Saffron Tech CEO Michael Oster said the partnership would help the company shift from ‘cultivation to cell-based production,” unlocking saffron’s potential in health, nutrition, and wellness markets through faster and more sustainable production.
Separately, BioHarvest issued preliminary third-quarter 2025 results, projecting unaudited revenue of about $9.1 million, in line with guidance, and adjusted EBITDA between a loss of $0.7 million and a loss of $0.4 million. Cash and cash equivalents as of Sept. 30 stood at roughly $11 million.
For the fourth quarter, the company expects revenue between $9 million and $9.5 million, with adjusted EBITDA ranging from a loss of $0.6 million to breakeven.
“The third quarter was highlighted by growth in our VINIA business as well as in our CDMO services,” said CEO Ilan Sobel, adding that upcoming product launches and marketing initiatives position the company to reach adjusted EBITDA breakeven “in the near term.”