BioHarvest Sciences Inc (NASDAQ:BHST, FRA:8MV0) announced that it has completed the first stage of a multi-phase development program focused on a rare scent-producing plant used in the global fragrance industry.
The work was carried out through the company’s contract development and manufacturing organization (CDMO) division under an agreement signed about a year ago.
According to the company, the milestone represents the first successful creation of a stable cell culture for this particular endangered plant species. The development could enable production of valuable fragrance compounds without harvesting the plant in its natural habitat, where it grows only in limited regions of Southeast Asia.
BioHarvest said the achievement positions it to enter the premium fragrance segment, which it estimates as a $23 billion portion of the broader $58.9 billion global fragrance market. The plant involved is known for producing high-value scent compounds, with top-grade materials reportedly selling for tens of thousands of dollars per kilogram.
The company used its proprietary Botanical Synthesis platform to replicate the plant’s molecular composition. During Stage 1, researchers identified key compounds, including sesquiterpenes and chromones, in the cultivated cell cultures, with profiles closely matching those of the original plant. These compounds are significant in perfumery for their role in creating long-lasting base notes.
BioHarvest CEO Ilan Sobel described the development as a step forward for the company’s technology and its expansion into high-value fragrance markets.
“Successfully creating stable cell cultures for such a unique plant demonstrates the power of our Botanical Synthesis platform and reinforces our ability to unlock rare, high-value plant-derived molecules at industrial scale,” Sobel said. “This milestone also strengthens our royalty-driven CDMO model and creates long-term value opportunities for our shareholders."
Under the terms of the agreement, BioHarvest will retain a 20% ownership stake in the compositions developed through the program, allowing it to participate in potential downstream revenues as commercialization progresses. The structure reflects the company’s shift toward a partner development and manufacturing organization (PDMO) model, which emphasizes shared value creation.
The major principal of the partner organization, described as a United Arab Emirates–based investment group, said the results support both the scientific approach and commercial potential of the project, and expressed interest in advancing to the next phase.
“This milestone validates both the scientific strength of the Botanical Synthesis platform and the commercial potential of sustainable plant-derived fragrance compositions,” the major principal said.
With Stage 1 complete, BioHarvest plans to move into Stage 2, which will involve scaling production by propagating the cultured cells in liquid media to generate biomass. The company expects material for pre-commercial testing could be available within six to nine months, with full-scale manufacturing targeted within 12 to 18 months.
BioHarvest indicated that the project may serve as a model for future programs aimed at other rare and high-value fragrance plants. The company believes its platform could enable a broader pipeline of sustainable fragrance ingredients, expanding opportunities within its CDMO division.