Latest / Bloomberg Intelligence / Marrone Bio's CEO on Developing Biological Pesticides (Audio)

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Marrone Bio's CEO on Developing Biological Pesticides (Audio) · Bloomberg Intelligence

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  Speaker 1: new solutions for pest control along with increased plant health
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  Speaker 1: recapping stocks trading at a record SMP up eleven six,
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  Speaker 1: That's a Bloomberg business flash. He's taking stuff with Kathleen
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  Speaker 1: Hayes and Pim Fox One Word Radio. Are you one
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  Speaker 1: of many, not only Americans, but people around the world
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  Speaker 1: who are concerned about pesticides, about chemicals on the food
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  Speaker 1: that is grown to take to their table for dinner. Well,
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  Speaker 1: if you are concerned about that, and if you're an
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  Speaker 1: investor as well, you might want to be uh very
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  Speaker 1: focused on our next guest enter biopesticides and Dr Pam Maron.
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  Speaker 1: She's founder and CEO of Marone Bio Innovation. She's joining
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  Speaker 1: us today from Davis, California, which is about twenty minutes
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  Speaker 1: from Sacramento, very important agricultural area of this country. Dr Maron, welcome,
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  Speaker 1: Thank you. So first of all, tell us what our biopesticides.
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  Speaker 1: So these are naturally occurring products. They're derived from natural substances,
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  Speaker 1: could be naturally occurring bacteria or mold or extracts of plants,
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  Speaker 1: and they non toxic, low risk. What are they made of,
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  Speaker 1: I mean, so they could be um an actual plant
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  Speaker 1: that you extract from. So you could dry take a
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  Speaker 1: like we have a product that actually is from not weed,
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  Speaker 1: and you dry the not weed, You harvest the notweed wild,
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  Speaker 1: you dry it and then you put it in a
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  Speaker 1: big vat of alcohol and um hot alcohol, and then
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  Speaker 1: and then for thirty minutes you come out and extract
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  Speaker 1: um like like you're making a tincture, you know, for
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  Speaker 1: your own self from lavender or something like that. But
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  Speaker 1: then these pesticiddle compounds, natural products that come out of
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  Speaker 1: that extract you can spray on the crop and ward
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  Speaker 1: off potty milk jewics and increase your growth and yields
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  Speaker 1: of crops. Can we just put aside the technology and
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  Speaker 1: the science for just a second. I want to ask
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  Speaker 1: a little bit about the financials of the company. Why
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  Speaker 1: go public at this stage, because I mean, looking at
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  Speaker 1: the stock, it's down about six percent year to day,
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  Speaker 1: and it's got a market cap of about twenty million.
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  Speaker 1: Why go public at such a point, wouldn't it. I
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  Speaker 1: always thought the company would go public after they were
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  Speaker 1: UH law archer and more profitable and and and had
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  Speaker 1: a wider distribution network. So when we went public in
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  Speaker 1: twenty thirteen, things looked great for the company and UM,
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  Speaker 1: you know, all systems go and we thought we could, um,
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  Speaker 1: UH will be the pure We're only a pure play.
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  Speaker 1: We're the only pure play biopas side coming on the market,
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  Speaker 1: and it would give us greater access to capital and
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  Speaker 1: grow faster and H Then there were a series of
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  Speaker 1: events that UH caused a restatement of the of the
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  Speaker 1: of our financials and I don't really want to get
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  Speaker 1: into that, and UH drove the stock down. UM, so
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  Speaker 1: it took a little rebuilding of the company, and which
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  Speaker 1: is where we are today. And we're building momentum upon
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  Speaker 1: some negative past events and we're back. So who who
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  Speaker 1: are your competitors in this field? Well, we have some
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  Speaker 1: very large companies. They would be like there and B
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  Speaker 1: s F and du Pont and they're also developing biopaths
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  Speaker 1: decide they're selling chemicals, but they have some of them
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  Speaker 1: have made acquisitions Biopest side companies because of the growth
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  Speaker 1: in this segment and that you can't meet all of
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  Speaker 1: customer needs with chemicals. For example, um global movement of
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  Speaker 1: food that foods gets moved around globally and consumers don't
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  Speaker 1: like chemical pest side residues on their food. So our
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  Speaker 1: products can be used right up to harvest and you
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  Speaker 1: don't have to worry about chemical residues because they don't
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  Speaker 1: leave chemical residues. So so that provides an opportunity where
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  Speaker 1: a chemical can't. As far as the business of these
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  Speaker 1: kinds of bio of products, does it really depend on
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  Speaker 1: having the right patent library. All of the products in
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  Speaker 1: this industry are generally patented, so there's this extreme amount
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  Speaker 1: of intellectual property and patents behind our products. So we
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  Speaker 1: actually do patent the substance, the natural occurring substance that
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  Speaker 1: we find, so someone can't then just take it and
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  Speaker 1: duplicate it. Yeah, so where do you go next? Do
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  Speaker 1: you do you continue to expand what you have? Uh?
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  Speaker 1: Do you develop new products? Is it marketing? It seems
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  Speaker 1: to me like as I said, there's a growing demand
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  Speaker 1: for this kind of product right there is hugely growing
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  Speaker 1: and I think to me, it's kind of hyperbolic so
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  Speaker 1: what do how do you capture that? Well, it is
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  Speaker 1: come it does come down with our products. So we
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  Speaker 1: focus on what are unmet needs in the marketplace, So
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  Speaker 1: what do the growers want, and that would be um
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  Speaker 1: new solutions for something like nematodes. Nematodes are round worms
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  Speaker 1: that feed on the roots of plants. So we are
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  Speaker 1: discovery operations swung into action and we discovered a bacteria,
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  Speaker 1: a new species that produces substances that kill these roundworms.
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  Speaker 1: So you can apply it in the soil and it
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  Speaker 1: gives a healthier plant and kills the nematodes and much
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  Speaker 1: better yield of more fruit and more vegetables. So it
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  Speaker 1: comes through innovation. So that's our company by having multiple
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  Speaker 1: products and kill insects, kill nematodes, kill plant diseases, and
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  Speaker 1: we are working on a weed killer, which is really
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  Speaker 1: important for both organic and um traditional farming because for organic,
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  Speaker 1: one of the reasons the cost of organic is so
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  Speaker 1: high is because the cost of weed control it's really
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  Speaker 1: hard with organic. And then on the traditional side, weeds
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  Speaker 1: have developed resistance to the chemical herbicides and we're going
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  Speaker 1: to try to solve that solution as well. Thank you
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  Speaker 1: very much for coming in and giving us this insight
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  Speaker 1: into a new and uh we help burgeoning market. Dr
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  Speaker 1: Pam Maron is the founder and the chief executive of
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  Speaker 1: Marone Bio Innovations. They are based in Davis, California. This
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