Proactive Investors - Run By Investors For Investors

Shares of Arcadia Biosciences jump after White House streamlines approval process of new GMO crops

President Trump on Tuesday signed an executive order instructing the Agriculture Department, the FDA and the EPA to ease rules for GMO crops and other agricultural biotechnology
California-based Arcadia produces a GMO soybean

Shares of Arcadia Biosciences Inc (NASDAQ:RKDA) increased by double-digits Wednesday after the Trump administration ordered three federal agencies to ease their rules for approving genetically modified crops and other agricultural biotechnology.

President Trump on Tuesday signed an executive order instructing the Agriculture Department, the Food and Drug Administration and the Environmental Protection Agency — which oversee genetically engineered agricultural products — to review their biotech regulations to streamline the approval processes.

Arcadia, based in Davis, California, is an agricultural biotech company that develops high-value food ingredients and nutritional oils that aim to meet the demand for healthier diets. It also produces a GMO soybean.

The company’s stock closed up 19.6% to $5.91 a share.

READ: Arcadia Biosciences rapidly advances cannabis business as it reports first-quarter highlights

The White House wants to bring new agricultural biotechnology to the marketplace faster and with less cost for companies. Also the Trump administration hopes to encourage more investment in GMO crops.

Trump’s executive order comes after the US Agriculture Department last week proposed sweeping changes to biotech rules that would exempt from regulation genetically edited farm products with traits “similar in kind” to modifications that could be produced through traditional breeding techniques.

Arcadia operates in specialty genomics and has a proprietary approach combining conventional breeding and gene editing.

And on Friday the US told the World Trade Organization that it was planning to revise its regulations on importing, transporting and releasing GMOs.

“As a leading U.S. crop improvement company, Arcadia Biosciences is focused on enhancing the nutritional value and quality of food ingredients while improving crop productivity to allow America’s agricultural industry to be more sustainable and prosperous," a company spokesperson said. "We’re supportive of any legislation that fosters public confidence in science-based crop innovation and streamlines regulatory approaches in order to reduce undue financial and logistical burdens on farmers.”

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham

View full RKDA profile View Profile

Arcadia Biosciences Inc Timeline

Related Articles

January 15 2019
Chairman Miles Pelham said Obtala made great strides in 2018 and has the “nuts and bolts” in place for 2019.
March 06 2019
Backed by a 3bn tonne resource, Verde Agritech looks like playing a central role in Brazil's farming future
December 11 2018
Originally a research and development company engaged in pioneering research on crop improvement, Arcadia Biosciences is undergoing a transformation, according to CEO Raj Ketkar

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use