Calyxt to Develop Soy-based Alternative to Palm Oil with Asian Partner

Innovative plant-based biotechnology platform company, Calyxt announced on September 28 it entered a partnership with a leading global food ingredient manufacturer based in Asia to develop an improved soybean capable of producing an oil suitable as an alternative to palm oil.  In addition to the potential health benefits, this soybean and its oil may address sustainability challenges associated with palm oil the report said.
 
This collaboration will serve to address the food manufacturer’s need for greater sustainability in its supply chain and will leverage Calyxt’s strong foundation of research and its novel understanding of plant metabolism developed over the course of a decade. Calyxt will use its proprietary technology platform based on a deep understanding of plant genomes and pathways to engineer plant metabolism.  
Under the parameters of the partnership, Calyxt will receive cash payments during the two years of the term of the agreement. It also includes a commercial option for the global ingredient maker, that if exercised, has the potential to generate future aggregate payments exceeding $35 million over the term of the commercial agreement, based on the palm oil market share of the partner, assumptions as to market pricing, and other key assumptions.