How GMOs Are Benefitting Ceres

Genetically modified organisms (GMO) have been a stigmatizing point recently, but Ceres, Inc. (NASDAQ: CERE) has been ignoring the drama and acting out of practicality. Companies like Chipotle might argue against using GMOs in their food, but at the same time that is part of their purely organic disposition. However, GMOs have other practical uses that are by and large incredibly beneficial and Ceres is looking to take advantage of this with its newest development.

Ceres was granted a U.S. patent for a genetic sequence derived from the soybean. This has the potential to impact a couple other areas of research such as product development and plant transformation.

Ultimately the company believes that this gene will be useful in regulating biosynthetic processes that are the targets of a class of commercial herbicides. The plan is that Ceres will offer other seed companies a commercial license to the patent, which includes the opportunity for exclusivity in certain crops.

For a little background on Ceres, it is an agricultural biotech that develops and markets seeds to produce crops for forage, biofuels and other markets that utilize plant biomass. The plant breeding and biotechnology technology platforms, which can increase crop productivity, improve quality, reduce crop inputs and improve cultivation on marginal land, have broad application across multiple crops, including food, feed, fiber and fuel crops.

Ceres owns or maintains exclusive licensed rights to roughly 85 issued patents and pending patent applications in the U.S. and in various foreign jurisdictions.

Following the issuance of this patent, the company is currently evaluating the potential market for this gene among soybean seed companies.

Richard Hamilton, President and CEO of Ceres, commented on this development:

The need for technology improvements has become more pressing due to stresses from climate variability and competition for water resources. Agricultural biotechnology has and will continue to represent a significant source of innovation for increasing crop yields through improving performance of seeds.

Shares of Ceres were up nearly 100% at $3.34 in the last hour of trading on Wednesday. The stock has a consensus analyst price target of $4.00 and a 52-week trading range of $1.44 to $6.56.

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