Biotalys A llama-inspired way to protect crops

Biotalys uses large molecule antibody technology from the pharmaceutical industry to develop innovative crop protection solutions. Its first product, the biofungicide Evoca, is derived from the AGROBODY Foundry platform and targets the high-growth biological crop protection market. Biotalys focuses on cost-effective R&D to introduce new modes of action in fungicides and insecticides, with regulatory processes in the US and EU progressing. It has commercial agreements in place for production and marketing and is managed by an experienced team.

Recently, Biotalys transitioned to its second generation AGROBODY 2.0 technology for the development of protein-based biocontrols. This transition involves organisational changes to focus on core R&D and the registration of Evoca. The new technology aims to improve potency and efficacy while reducing costs and broadening market reach. The transition also includes a 10% reduction in operating expenses.

Evoca, designed to protect crops from diseases such as botrytis and powdery mildew, offers a new rotational partner in pest management, reducing dependence on chemical pesticides and environmental impact. Biotalys plans tot enter into partnerships for the commercial production and distribution of Evoca and BioFun-6.

The company's growth prospects are supported by its cutting-edge technology, capital-efficient model, multiple market routes and solid management, leading us to maintain our, DCF and SOTP-based, €6.0 target price and Buy rating.