DALLAS - Arcadia Biosciences , Inc. (NASDAQ: NASDAQ:RKDA), a developer of plant-based health and wellness products, has finalized a deal with Corteva (NYSE:CTVA) Agriscience for the sale of its Resistant Starch (RS) Durum Wheat trait.
The transaction, valued at $4 million, grants Corteva ownership of 24 RS Durum patents across 20 countries while allowing Arcadia to continue incorporating the trait in its GoodWheat product line.
The partnership between Arcadia and Corteva began in 2017, aiming to develop and commercialize RS Durum Wheat in North America. Corteva has since been integrating the RS Durum trait into its proprietary germplasm lines.
Arcadia's RS Durum Wheat, created through advanced non-GMO breeding techniques, is high in amylose, a carbohydrate that resists quick digestion. This attribute is linked to health benefits such as improved gut health, lower glycemic response, and potential management of cardiovascular diseases and type 2 diabetes.
Stan Jacot, president & CEO of Arcadia, commented on the partnership's future, stating that Corteva would eventually provide seeds for the GoodWheat brand. He emphasized that this agreement reinforces Arcadia's financial position, enabling further strategic endeavors.
Arcadia, established in 2002, has been at the forefront of crop innovation, focusing on producing healthier consumer food options. Their portfolio includes GoodWheat pasta, pancake mixes, mac & cheese, and Zola coconut water.
This news is based on a press release statement from Arcadia Biosciences.
InvestingPro Insights
As Arcadia Biosciences (NASDAQ: RKDA) announces its strategic deal with Corteva Agriscience, the company's financial health and market performance remain a focal point for investors. A closer look at the real-time data from InvestingPro reveals key metrics that may influence investor sentiment:
- The company's market capitalization stands at a modest $2.78 million, reflecting its position in the market.
- Arcadia's Price / Book ratio for the last twelve months as of Q1 2024 is notably low at 0.26, suggesting that the stock may be undervalued relative to its book value.
- Despite the challenges, Arcadia's liquid assets surpass its short-term obligations, indicating a degree of financial flexibility.
InvestingPro Tips highlight several considerations for investors:
- Arcadia holds more cash than debt on its balance sheet, providing a buffer against financial headwinds.
- The company does not pay a dividend, which may influence the investment decisions of income-focused shareholders.
With an additional 11 InvestingPro Tips available, investors can gain a deeper understanding of Arcadia Biosciences' financial standing and market potential. For those looking to explore these insights further, InvestingPro offers a comprehensive analysis, which can be accessed with a special offer. Use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This could be an opportune moment for investors to reassess Arcadia's position in the light of its recent business developments and market data.
The strategic sale of its Resistant Starch Durum Wheat trait to Corteva Agriscience is a move that could potentially strengthen Arcadia's financial position, as noted by CEO Stan Jacot. The company's ability to maintain its GoodWheat product line while capitalizing on the deal may offer a pathway to future growth and innovation in the health and wellness sector.
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