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SAN DIEGO - Agricultural technology company Cibus Inc. (NASDAQ:CBUS), with a market capitalization of $105.7 million, announced today that its latest herbicide tolerance trait for canola, known as HT2, has been classified as "not regulated" by the United States Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS). This designation indicates that the trait is not considered a plant pest or believed to be one under current regulations. According to InvestingPro analysis, while the company maintains a healthy liquidity position with a current ratio of 1.67, analysts anticipate sales decline in the current year.
The HT2 trait is part of Cibus’s portfolio of traits developed using their proprietary Rapid Trait Development System (RTDS®), which aims to enhance agricultural productivity and sustainability. The company’s interim CEO, Dr. Peter Beetham, highlighted the trait’s potential to provide farmers with advanced tools for improved weed management, especially against herbicide-resistant weeds.
Cibus’s technology focuses on gene editing to create traits that address significant agricultural challenges, such as pest and disease control, which are estimated to cost the global economy around $300 billion annually. The company’s business model involves licensing these traits to seed companies in exchange for royalties on seed sales, rather than selling seeds directly.
With the USDA-APHIS’s recent regulatory decision, Cibus has now achieved a total of seventeen traits that have been designated as not regulated. This milestone reflects the company’s progress in the United States and its potential to impact international markets.
The HT2 trait in canola is designed to offer an alternative solution for managing weeds that have developed resistance to commonly used herbicides. The need for efficient weed management is critical for broad-acre crops like canola and soybean, where weeds can significantly affect yield.
This announcement contains forward-looking statements regarding Cibus’s operational performance and future plans, including the expectation of commercial revenues and additional funding. However, these statements are subject to various risks and uncertainties, and actual results may differ materially.
The company’s reliance on third-party development activities, intellectual property protection challenges, and the need for additional funding are among the factors that could influence Cibus’s future success. InvestingPro data reveals the company’s high volatility with a beta of 3.2, suggesting significant price swings compared to the broader market. Furthermore, regulatory developments, market risks, and technological advancements could also impact the company’s trajectory. InvestingPro subscribers have access to 7 additional key insights about Cibus’s financial health and market position.
Investors and industry watchers may consider the recent USDA-APHIS determination as a positive development for Cibus, potentially facilitating the introduction of the HT2 trait and others from its pipeline into the market. InvestingPro analysis indicates that the stock is currently trading below its Fair Value, presenting a potential opportunity for investors. For comprehensive analysis including detailed valuation metrics and growth prospects, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers. This news is based on a press release statement from Cibus.
In other recent news, Cellectis has reported impressive financial results for the fourth quarter of 2024, significantly surpassing market expectations. The company achieved an earnings per share (EPS) of -0.1566, outperforming the anticipated -0.1697, while revenue reached $30.59 million, far exceeding the forecasted $9.04 million. Cellectis’s strategic partnership with AstraZeneca has been a key factor in strengthening its market position. Additionally, the company extended its cash runway to mid-2027, providing enhanced financial stability. Meanwhile, Cibus Inc. announced plans for a public offering of Class A common stock to fund the development of its weed management traits in rice. The offering, which is subject to market conditions, will be conducted by A.G.P./Alliance Global Partners as the sole placement agent. This move is part of Cibus’s strategy to secure longer-term financing solutions.
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