BioHarvest partners with Saffron Tech to produce high-value compounds

VANCOUVER/REHOVOT - BioHarvest Sciences Inc. (NASDAQ:BHST) has entered into a strategic development and manufacturing agreement with Saffron Tech to produce saffron-derived botanical compounds using BioHarvest’s Botanical Synthesis platform, according to a press release issued Thursday. The company, currently trading at $9.84 with a market capitalization of $108.47 million, has seen its stock price surge 107.8% over the past year despite a recent 17.35% decline last week.

Under the agreement, Saffron Tech will own 75% of the developed saffron compositions and associated rights, while BioHarvest will hold the remaining 25%. The companies aim to develop compounds from saffron, which traditionally retails for over $10,000 per kilogram due to labor-intensive cultivation requirements.InvestingPro data reveals BHST operates with impressive gross profit margins and exhibits high price volatility. Subscribers can access 11 more ProTips and detailed financial metrics to better evaluate this partnership’s potential impact.

The partnership will combine BioHarvest’s bioreactor-based manufacturing capabilities with Saffron Tech’s specially cultivated saffron species and cell-culture research. Both solid-phase and liquid-phase development work will be conducted simultaneously to potentially shorten time to market.

BioHarvest plans to manufacture the compounds at scale and market them through its direct-to-consumer e-commerce business, developing nutraceutical products that leverage saffron’s reported benefits for cognitive function, eye health, and antioxidant properties.

"We will leverage our Botanical Synthesis platform technology to research and develop saffron’s valuable bioactive compounds so that they can be produced consistently, economically, and sustainably," said Dr. Zaki Rakib, Chairman and Head of BioHarvest’s CDMO division.

BioHarvest also released preliminary financial results, reporting expected third-quarter 2025 revenue of approximately $9.1 million with adjusted EBITDA between ($0.7 million) and ($0.4 million). The company provided fourth-quarter guidance with projected revenue between $9 million and $9.5 million.

Cash and cash equivalents totaled approximately $11 million as of September 30, 2025. The company stated it remains on track to reach adjusted EBITDA breakeven in the near term.

In other recent news, BioHarvest Sciences Inc. has successfully raised $10.9 million through a combination of warrant exercises and debt conversions. The biotechnology company reported that this financial maneuver not only bolstered its balance sheet but also reduced its total debt by $3.8 million. These transactions included raising $5.8 million from the exercise of 898,277 warrants and an additional $5.1 million from new convertible notes, which were later converted into common shares. Furthermore, BioHarvest announced the successful large-scale production of plant-based exosomes in its bioreactor media. These exosomes, containing viniferin, have potential applications in therapeutic and cosmetic fields, such as targeted drug delivery and advanced skincare. These developments highlight BioHarvest’s strategic financial management and innovative capabilities in biotechnology.

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