LUXEMBOURG - Moolec Science SA (NASDAQ:MLEC), a company specializing in Molecular Farming technology, announced today that its genetically engineered (GE) peas, which are designed to produce iron through bovine meat proteins, have received regulatory clearance from the U.S. Department of Agriculture's (USDA) Animal and Plant Health Inspection Service (APHIS). This marks the third USDA-APHIS approval for the company within an 18-month period, following the clearance of its GE safflower and soybean products.
The company's GE peas are engineered to yield high amounts of bovine myoglobin, a protein that enhances iron content, presenting a potential breakthrough for those seeking plant-based iron sources. This innovation could impact the $65 billion pea industry by providing a nutritious, iron-rich alternative to conventional meat products.
Gastón Paladini, CEO and Co-Founder of Moolec, expressed pride in the company's unique position as the only Molecular Farming entity with three U.S. regulatory approvals and a significant commercial contract. He emphasized that these achievements underscore Moolec's leadership and commitment to delivering science-based results in the market.
Amit Dhingra, Chief Science Officer for Moolec, described the USDA-APHIS review as a historic development and a crucial step towards enhancing the global food supply with sustainable, innovative nutritional solutions.
The regulatory process conducted by USDA-APHIS is essential for ensuring the safe cultivation of genetically engineered crops and paves the way for expanded field trials, seed scaling, and commercialization. The approval is expected to solidify Moolec's position at the forefront of food and agriculture innovation.
Moolec Science is recognized for its pioneering efforts in producing animal proteins through plant engineering. The company's mission focuses on redefining animal protein production for environmental benefit. With a diverse team and international patent portfolio, Moolec operates across the United States, Europe, and South America.
The company also highlighted its commitment to upholding the highest regulatory and safety standards and has developed an Identity Preservation Program to promote sustainable farming practices and product quality.
This news is based on a press release statement and does not imply any endorsement of the claims. The information provided reflects the company's current achievements and future prospects within the regulatory framework.
In other recent news, Moolec Science reported a substantial increase in its revenue to $5.8 million during its fourth quarter and full fiscal year 2024 earnings call, a significant rise from $1 million in the previous year. The company also announced plans to commercialize its Glaso product, which is expected to contribute approximately 15% to the projected $6 million revenue for the soy protein ingredient business in 2025. Despite a rise in operating expenses to $9.3 million, largely due to non-cash items and consolidation costs, Moolec Science remains positive about its growth trajectory.
Alongside these financial developments, Moolec Science confirmed that it would harvest its genetically engineered plant-grown products, GLASO and Piggy Sooy, in the United States in October 2024. These products are on schedule, with GLASO expected to hit the market in the first half of calendar year 2025, and Piggy Sooy projected to launch by calendar year 2028 or possibly earlier.
In terms of analyst outlook, Maxim Group adjusted its financial outlook for Moolec Science, reducing the price target from $6.00 to $3.00, while maintaining a Buy rating on the stock. This adjustment followed Moolec Science's fiscal fourth-quarter results, which showed revenues surpassing the firm's expectations, although the loss per share was slightly greater than anticipated.
Finally, Moolec Science is establishing a new operational hub in the U.S to enhance team collaboration and efficiency, and is expanding its research and development, focusing on new proteins and molecular products. The company has also signed a three-year offtake agreement for Glaso with a major global CPG company, indicating strong market demand.
InvestingPro Insights
Despite Moolec Science's recent regulatory success with its genetically engineered peas, the company faces significant financial challenges. According to InvestingPro data, Moolec's market capitalization stands at a modest $33.51 million, reflecting its early-stage status in the competitive biotech sector.
An InvestingPro Tip indicates that Moolec is "quickly burning through cash," which is not uncommon for innovative biotech companies but highlights the need for careful financial management as it moves towards commercialization of its products. This cash burn rate is particularly relevant given the company's recent regulatory approvals and the potential need for increased investment in scaling operations.
Another InvestingPro Tip suggests that Moolec "suffers from weak gross profit margins," with data showing a gross profit margin of just 8.4% for the last twelve months as of Q4 2024. This low margin could be a concern as the company looks to commercialize its newly approved products and compete in the $65 billion pea industry mentioned in the article.
On a positive note, Moolec has seen significant revenue growth, with a remarkable 521.52% increase in the last twelve months. This growth aligns with the company's progress in obtaining regulatory approvals and suggests increasing market traction for its Molecular Farming technology.
For investors interested in a deeper analysis of Moolec Science, InvestingPro offers 14 additional tips that could provide valuable insights into the company's financial health and market position.
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