Applied DNA Sciences (NASDAQ:APDN) advanced in morning trading after the provider of security solutions signed a Cooperative Research and Development Agreement (CRADA) with the United States Department of Agriculture (USDA).
Shares rose 5.8% to $3.08 at 9:56 a.m. in New York, paring losses over the past three months to 62%.
The Stony Brook, New York-based company said the agreement will enhance t’s proprietary identification methods of cotton species and cultivars (subspecies), collectively, trademarked as fiberTyping.
This enhanced fiberTyping will genetically verify multiple types of individual cotton cultivars, and assist the cotton industry in protecting quality, traceability and economic investments.
For example, enhanced fiberTyping will be able to differentiate cotton based on country of origin and could ensure that cotton from countries known to use child labor would not be incorporated into tested products.
"Our collaboration with the USDA will accelerate our ability to identify key cultivars for specific cotton growing regions based on our patented technology,” Dr. Mike Hogan, VP of Life Sciences at Applied DNA Sciences, said in the statement.
“We will be able to identify the fibers that are most desirable, and exclude fibers that are harvested from regions known to use forced or underage labor."
Applied DNA has been granted an option to negotiate an exclusive license for any Inventions made by USDA or jointly made by Applied DNA and USDA.