Diversa And Novartis To Develop Crop Enhancement Products

Diversa Corp. and Novartis Agribusiness Biotechnology Research Inc. are to jointly develop products for crop enhancement and improved agronomic performance under a new multi-year, multi-project research initiative.

As part of the collaborative agreement, Novartis will make a $12.5 million upfront payment to Diversa. In return, Diversa will utilize its discovery and screening technologies to identify and optimize genes and gene pathways in transgenic crops. By combining their proprietary technologies, the two companies hope to generate new seed products containing novel performance and quality traits, says Terrance Bruggeman, Diversa's chief executive officer.

Diversa's technology involves the direct isolation, expression and sequencing of microbial and plant genomes derived from raw environmental samples. Using proprietary assays, ultra high throughput screening techniques and a robotic automated system, Diversa can screen and develop target enzymes or bioactive molecules at a rate close to one billion per day. Diversa scientists then employ its "directed evolution" and "gene reassembly" approaches to optimize lead compounds for use in specific applications.

Novartis will fund research support, make milestone payments, and pay licensing fees and royalties to Diversa. Additional financial terms of the agreement were not disclosed.

For more information: Terrance J. Bruggeman, CEO, Diversa Corp., 10665 Sorrento Valley Road, San Diego, CA 92121. Telephone: 619-453-7020.