Ceres (NASDAQ:CERE) surged in morning trading after the agricultural biotechnology company had been awarded an Australian patent for a trait that allows growers to increase yields without increasing crop inputs like fertilizer.
Shares surged 42% before paring gains to $0.28, up 7.7%, at 10:03 a.m. in New York.
The patent extends intellectual property protection to the Australian market of a key gene that Ceres has licensed to a multinational crop developer, the Thousands Oaks, California-based company said in a statement on Friday.
The patent, due to expire in 2030, covers uses of the gene in crops such as corn, soybean, sorghum, sugarcane, sugarbeet and wheat.
Ceres said on Friday that it plans to offer seed companies a license to the technology in crops not already licensed.
The genetic sequences of the trait were derived from a plant and optimized by Ceres.
Experimental results have demonstrated significant yield increases in several plant species. Increases in productivity per acre can have a significant impact on farm income as well as reduce the overall footprint of agricultural production.
“We believe that our next-generation traits can provide multiple opportunities for producers to increase productivity, reduce inputs and make greater use of marginal cropland,” CEO Richard Hamilton said in the statement.
Ceres owns or maintains exclusive licensed rights to approximately 95 issued patents and numerous pending patent applications in the United States and in various foreign jurisdictions.