Florigene to be sold to Suntory as Nufarm exits biotech

Australian biotechnology pioneer Florigene, a subsidiary of Australian agricultural company Nufarm, is being sold off to long-time joint venture partner Suntory.

The deal is subject to approval by minority shareholders in the floral biotechnology company later this month.

According to Nufarm's Dr Mike Dalling, group general manager for R&D, the giant Japanese company was a logical buyer for Florigene, with a joint venture between the two companies going back to 1990 to develop a blue rose and other genetically modified flowers for the cut flower industry.

And while the blue rose -- the 'holy grail' of the cut flower industry -- has not yet materialised, Florigene has developed a range of blue-hued carnations, and is working on other blue flower varieties.

Dalling said he believed Suntory planned to retain Florigene's research facility in Melbourne, possibly even moving some of its own R&D activities down to Australia.

"There is a recognition by Suntory that Florigene is the best in the world," he said. "They have no intention of dismantling Florigene as far as I can see."

Dalling, who helped to found Florigene as Calgene Australia in the mid-1980s, said Florigene had built up a wealth of experience dealing with regulators of GM products in Australia and overseas.

"Florigene's flowers are the only GM product developed in Australia that has been released on the global market," he said.

In recent years, Florigene has focused on building its business in the Japanese and US markets, and has recently re-entered the GM-unfriendly European market, with regulatory approval granted for two of its varieties and four more applications in process.

The sale signals a shift by Nufarm to concentrate on its crop protection business, and move away from biotechnology R&D. Nufarm managing director Doug Rathbone said the company did not see basic research biotechnology as its way forward, and instead planned to focus on the marketing end of biotechnology through its involvement in the Nugrain joint venture with Australian grain handlers and distributors.