Specialty chemicals maker
American Vanguard Corp.
), through its fully-owned unit Amvac Chemical Corporation, has
cut a joint venture pact with life science company, TyraTech,
Inc. Under the deal, the entities will jointly develop and market
pesticide products that feature TyraTech's Nature's Technology.
The technology ensures the delivery of products with highest
level of efficacy and safety.
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The collaboration will market the novel pesticide products and
technologies in the consumer household and lawn and garden retail
markets globally. Moreover, it will make and distribute products
and technologies across commercial, institutional, professional,
crop protection and seed treatment markets.
The joint venture will also develop new combinations with
synthetic compounds leveraging TyraTech's proprietary Extend
Technology. This will help in improving efficacy and
environmental impact on an array of crops, providing Amvac with
fresh growth opportunities globally.
The agreement will allow TyraTech to retain all rights to use its
technology in the human and animal health markets along with
other specific consumer markets. Amvac, on the other hand, will
have access to TyraTech's screening platform which is used to
identify synergistic combinations of natural compounds.
The joint venture will be owned jointly by Amvac and TyraTech,
with the former holding majority interest. It will be based in
North Carolina's Research Triangle Park area, giving it direct
access to TyraTech's R&D, production, and supply chain teams.
American Vanguard reported solid third quarter results last month
with profit surging 75% year over year to $8.1 million, boosted
by healthy sales of its soil fumigants and insecticides. Earnings
of 28 cents a share for the quarter trounced the Zacks Consensus
Estimate of 23 cents. Revenues jumped 23% year over year to $90.8
American Vanguard expects its results will be supported by the
successful roll out of its herbicide co-marketing program with
). Its crop protection products are also expected to aid to sales
American Vanguard currently retains a Zacks #1 Rank, which
translates into a short-term Strong Buy rating.