Uploaded byMelanie Cheng
SOCAP10: Pam Marrone, Marrone Bio Innovations
The document discusses biopesticides as a growing alternative to traditional chemical pesticides. It summarizes that the global chemical pesticide market faces challenges from issues like pest resistance and public health concerns. Meanwhile, the biopesticide market is growing much faster than chemicals at a 15.6% CAGR. The company Marrone Bio Innovations discovers and develops new biopesticide products and currently markets two products with several more in development and clinical trials. It aims to provide natural pest management solutions for conventional and organic agriculture as well as invasive species control.
More Related Content
Similar to SOCAP10: Pam Marrone, Marrone Bio Innovations
SOCAP10: Pam Marrone, Marrone Bio Innovations
- 1. Governor’s Environmental and EconomicLeadership Award 2008 2008 Cleantech Innovator Award Investors’ Circle Top 20 The Role of Biopesticides in Sustainable Food Systems – Investor Considerations
- 2. Global Chemical PesticideMarket is Challenged • Government phase-outs • Pest/weed resistance • Export residue restrictions • Public concern • Lack of new products 24% 48% 28% Fungicides Insecticides Herbicides Market growth inline with inflation Fungicides Insecticides Herbicides 0 5 10 15 20 25 30 35 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 $Billion 27% 24%19% 30% N. America Europe Asia Pacific South & Central Am
- 3. Supermarkets & Legislationin EU EU legislation 91/414 phases out hundreds of chemical pesticides; Supermarkets don’t want residues
- 4. 0 20 40 60 80 100 120 140 1995 1997 19992001 2003 2005 2007 Launches New Leads Cost to Discover & Develop a Synthetic Chemical ($Mil) Fewer New Chemicals – Higher Cost 1.2 4.1 20 45 85 105 185 256 1956 1964 1969 1977 1984 1998 2000 2003 2007 2010 0 50 100 150 1990 1995 2000 2009 # of Chemicals Screened to Find One Product (‘000) # of New Chemical Leads vs. Product Launches (Source: CropLife) Source: Ag Chem New Compound Review (Vol 25) 2007
- 5. Biopesticide Growth Far ExceedsChemicals Biopesticide Advantages • No chemical residues - good for export • Manage pest resistance • Spray in AM, return to field in PM • Gentle to environment • Can be used in organic • $3-5 mil & 3 yrs to market 0 500 1000 1500 2000 2500 3000 3500 2003 2005 2009 2014 $Millions Biopesticide Growth Outpaces Chemical Growth (15.6% vs. 1.3% CAGR) Most biopesticides are used in conventional farming as part of pest/plant disease management programs (source: BCC Research)
- 6. What are Biopesticides? •Microbials (e.g., bacteria, fungus) • Biochemicals (e.g. plant extracts (some), pheromones, fatty acids) - nontoxic mode of action Insect Pheromone Soaps/fatty acids Fungi & Bacteria Plant extract
- 7. Agrichemical Company Landscape •$3-8 billion; GM crops and synthetic chemicals • Monsanto, DuPont, Dow, Syngenta, Bayer, BASF • Focus - Large row crops; No biopesticide R&D • Biopesticide acquisitions and leveraging global sales force to sell others’ biopesticides The Big Six • $100 million-$2 billion; No Biopesticide R&D • Arysta, Makhteshim, Nufarm, UPI, Valent/Sumitomo, Advan/Sipcam, Gowan, Cheminova • Leverage sales force to sell others’ biopesticides Generic Suppliers • 0-$180 million; Microbials, pheromones, plant oils • Valent Bio, Becker Underwood, Certis, Arysta, Shin-etsu, Novozymes, Suterra, AgraQuest, Plant Health Care, Bioworks, Prophyta, MBI, Pasteuria, Exosect, EcoSmart • Some discovery/screening; Most in-license Biopesticides
- 8. Many Large Problemsto Solve 2.5 4.1 6.1 8.1 9.2 1950 1975 2000 2025 2050 World population growth (billion) (UN) Plant parasitic nematodes ($80 bil) Algae ($10+ bil) Sucking insects ($5 bil) Weeds ($40+ bil) Post harvest losses ($300 bil) Stress & Fertilizer Efficiency ($500+ bil)
- 9. What We Do Wediscover, develop, and market effective and environmentally responsible natural products (biopesticides) that fill unmet needs for weed, pest & plant disease management. • Products that improve yields and quality in conventional ag compared to chemical-only systems • Products that lower the cost and increase yields in organic farming • Products for water treatment and water bodies
- 10. Company Overview • FoundedApril 2006 by industry expert, serial entrepreneur Pam Marrone in Davis, California • 54 employees; 12 PhD, 7 MS, 4 MBA, 30 BS, 1 AS • Selling GreenMatch® Bioherbicide and Regalia® Biofungicide • Products in advanced development: Zequanox™ Invasive mussel product - launch early 2011 Two bioinsecticide and two bioherbicides waiting EPA approval • 6 U.S., 9 international patents filed • $23.5 million of invested equity capital, including $8.5 million in current C round
- 11. Product Pipeline Strategy: developmultiple products in parallel to create substantial revenues after 2011Market Entry Date MBI 501 Anti-transpirant MBI 203 Insecticide MBI 206 Insecticide MBI 010 Herbicide MBI 302 Nematicide MBI 005 Herbicide
- 12. Product Development Discovery Collect samples(soil, insects, flowers) from unique habitats & geographies Isolate, ferment, test bacteria & fungi Characterize microbes & pesticidal compounds Process development Toxicology/Regulatory Formulation Field trials Scale-up QC & Manufacturing How to Find Safe, Effective Natural Products
- 13. Water movement in plant SYSTEMICHERBICIDE (e.g. glyphosate=Roundup®) MOVEMENT IN PLANTS MBI 010 - Our “Organic Roundup®” Long term control of weeds – roots are killed after spraying the leaves • New species of bacteria discovered from our screen • Two novel systemic compounds produced by the bacteria • Broad spectrum weed control • Not the same mode of action as glyphosate (=Roundup) • Market entry late 2012
- 14. Market entry, early2011 upon EPA approval Mussels = $ billions in economic & environmental damage Mussels clog pipes in plants Ruptured mussel gut cells Pseudomonas fluorescens (dead or alive) bacteria kill mussels when they feed Discovered by NYSM; patented – MBI is exclusive partner Zebra Quagga
- 15. Ag Company RiskFactors Risk Factor MBI Actions to Mitigate Risks Weather Stepwise customer adoption curve ∙Geographic diversity ∙Water (Zequanox) + Ag ∙ Diverse ag product portfolio (insecticides, fungicides, herbicides, nematicides, plant health) Commodity prices Products in multiple crops and regions Cost of development in row crops (corn, soybean, cotton) Partner with large company EPA approval timeline delays Communication, relationships, lobbying, Biopesticide Alliance Microbial scale up speed (pace to reach target COGs) ∙Additional people and equipment ∙ Own/control fermentation manufacturing
- 16.
- 17. Board of Directors& Investors • Rich Rominger. (Chair). Yolo County farmer and ag icon. Former USDA Deputy Secretary and CA Agriculture Secretary; BOD American Farmland Trust • Larry Hough. Founder, Stuart Mill Ventures. Former CEO Sallie Mae • Ranjeet Bhatia. Co-founder, Saffron Hill Ventures • Tim Fogerty. CFO, CGI Opportunity Fund • Joe Hudson. Co-founder, One Earth Capital • Sean Schickedanz. General Partner, Clean Pacific Ventures • Jim Wissmiller. VP Tenkoz. VP Sales/Marketing at agrichem cos. Most recently Zeneca and Syngenta • Pam Marrone. CEO/Founder
- 18. Investor Considerations • Investorknowledge of food and ag is limited • Ag tech companies do not usually fit traditional Silicon Valley style VC model (exception: software) • Not an iPod or semiconductor! • For contrarian investors who develop expertise in ag, the field is wide open with promising companies to fund • More Investors needed for companies between late development and growth stage • Innovation in ag is badly needed to solve the world’s need for sustainable food production • There are not enough startups! Investors could develop relationships with land grant universities to help create companies from spinout technologies
- 19. Pam Marrone, Founder/CEO pmarrone@marronebio.com 1-530-902-1014(cell) 1-530-750-2800 (office) www.marronebioinnovations.com 2010 Marrone Bio Innovations, Inc.