MustGrow Biologics Corp. has signed a collaboration agreement with Bayer AG covering soil applications of MustGrow’s mustard-based biocontrol technologies in Europe, Middle East and Africa, excluding home and garden, turf, and ornamental applications.

Under the agreement, MustGrow receives an initial upfront payment as well as additional payments linked to the achievement of certain business milestones. When commercial sales begin, MustGrow will also receive fees from royalties and manufacturing sales.

The agreement says Bayer will be responsible for regulatory and market development work in the respective field of use necessary to commercialize MustGrow’s mustard-based biocontrol technologies, including the development of the formulated product, conducting relevant regulatory data studies for regulatory submissions, filing regulatory submissions, registration with relevant regulatory authorities, and support, marketing, and commercial sales activities.

MustGrow anticipates that the value of the upfront, milestone payments, and development work could approximate USD $35 to $40 million over the next “several years” (not including additional fees from royalties and manufacturing sales).

Bayer has been granted a right-of-first-negotiation for a license to use MustGrow’s mustard-based biocontrol technologies for use in bananas in particular applications, excluding postharvest applications.

MustGrow expects to continue collaborating with Bayer to consider other potential applications of MustGrow’s mustard-based biocontrol technologies, including potentially testing in regions not currently covered by the agreement.