Industry veteran Scott Jackson, PhD, has been added to the executive team for Vestaron Corporation as its new Director of Regulatory Affairs.

Jackson brings more than 20 years of agricultural chemical background as Vestaron continues to add staff to assist with regulatory compliance regarding existing and emerging peptide-based bioinsecticides. As part of his responsibilities, Jackson also will handle government affairs and public policy.

Bioinsecticide Pioneer Vestaron Relocates Corporate Headquarters to the Triangle

October 22, 2019 – (Durham, North Carolina) – Vestaron Corporation, a Michigan-based discovery company focused on developing environmentally friendly peptide-based bioinsecticides has just moved its corporate headquarters to RTP to be closer to the pulse of the U.S. crop protection industry.

Vestaron has been in research and product development for more than 14 years, hiring current CEO Anna Rath 18 months ago to help bring the company’s first products to full commercialization in the United States, as well as to seek additional capital and strategic partnerships.

The company’s Spear® family of bioinsecticides is based on a naturally occurring peptide and produced using its proprietary fermentation platform, to control some of the most troublesome pests that attack high-value crops. Particularly noteworthy with the Spear products is they use a new mode-of-action to control pests, making these products a new way to effectively address the growing problem of insect resistance to existing traditional synthetic insecticides.

“Vestaron is at an exciting crossroad,” Rath says. “We have in place the key executives, field staff, manufacturing and commercial capabilities to market and meet demands of the Spear product line.”

Rath adds that there are additional peptide-based products in development that are nearing the field-testing stage, an important step to commercialization. “This affirms our commitment to revolutionizing agricultural inputs and helping growers solve complex insect resistance issues.”

In June 2019, Vestaron secured a $40 million Series B that Rath says will allow Vestaron to further expand its current offerings internationally, as well as fund further R&D, product development and customer support.

Rath concludes: “The work Vestaron is conducting addresses three key points critical to the future of crop protection; controlling pests resistant to current products, environmental and worker safety concerns, and consumer mindfulness about how their food is produced.”

Vestaron’s new North Carolina office at 600 Park Offices Drive will house employees in corporate leadership, operations, and marketing.  The Kalamazoo, Michigan, facility remains in place for research and development.

About Vestaron 
Vestaron is a company dedicated to improving the safety, efficacy and sustainability of crop protection through migration from synthetic pesticides to peptide-based biopesticides. Vestaron is initially focused on a class of peptides that kill insect pests efficiently, but are safe for humans, beneficial insects and the environment. As part of this, the company has developed a proprietary platform for peptide optimization, fermentation-based peptide production and in planta expression that will allow it to develop a wide variety of biologic crop protection and trait solutions. Vestaron is the winner of the inaugural 2015 Bernard Blum Award for novel biocontrol solutions.

 

M&A Awards: With $40 million raise, Vestaron positions to commercialize new eco-friendly insecticides

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Since securing a $40 million capital investment last spring, Vestaron Corp. has been assembling commercial and operating teams as it prepares for the broad launch of a brand of eco-friendly pesticides in 2020.

Rooted in Kalamazoo, Vestaron closed in June on an investment led by Novo A/S, a Denmark-based holding company of pharmaceutical giant Novo Nordisk A/S.

Vestaron is using the capital to expand commercialization and accelerate the development of an additional line of eco-friendly insecticides as it builds operationally, said CEO Anna Rath.

“On the heels of getting our financing under control, we have really started building out the team,” Rath said.

Vestaron’s capital raise won the life sciences category in the 2019 MiBiz M&A Deals of the Year Awards.

Other investors in the deal include Boston-based Anterra Capital; Syngenta Ventures, the corporate venture capital arm of Swiss agricultural chemicals company Syngenta AG; New York City-based ag-focused private equity firm Continental Grain Co.; Chicago-based Cultivian Sandbox Ventures; Effingham, Ill.-based Open Prairie Ventures; and Vancouver, British Columbia-based Pangaea Ventures Ltd.

Early financial backers of the company included Grand Angels and Michigan Accelerator Fund I, both based in Grand Rapids.

Vestaron developed a new biopesticide that’s based on spider venom and holds promise to create an entirely new field in the $18 billion global insecticide market. The effect could be similar to what the development and emergence of biologic drugs have done for the pharmaceutical industry.

Throughout 2019, Vestaron prepared to launch its first commercial products for indoor growers and farm fields by assembling data from field studies. 

“That’s going to set us up for, we think, a tremendous commercial year in 2020,” Rath said. “We feel good about everything having come together as it needed to.”

Rath has described the science and technology behind Vestaron’s new Spear-branded products as “our own little revolution” in agricultural chemistry where “great safety and environmental attributes will play a major role.”

Vestaron’s role in that potential industry transformation drew the interest of investors with the ability to support larger capital needs. The deal was the first time Novo, a major life sciences investor in pharmaceuticals, invested in a company involved in agricultural technology.

“We take great pride in the fact that while they had been interested in making an ag-related investment for some time, we were the first one that gave them the right set of factors that caused them to take the leap,” Rath said.

Vestaron began moving toward the marketplace following a strategic decision by company directors at the end of 2017 to commercialize the products on its own. Directors also determined that the company “should be more than a platform company, that it should be a company that’s capable of manufacturing and commercializing its own products,” Rath said.

That required additional capital with new and larger investors who “really shared and could support the more commercially-oriented vision of the company going forward,” she said. Vestaron first connected with lead investor Novo after an introduction from Anterra Capital, a prior investor in the company.

In seeking a larger capital investment, Vestaron sought to connect with investors well-versed in the ag-tech industry.

“One of the things that I really wanted to do was make sure that we were not only attracting capital, but attracting high-quality capital, and that meant investors who would continue to be able to support the company through its development going forward and also folks who had some angle from which they would be able to be helpful to the company as more than just capital,” Rath said. “I am very happy with not just the amount of the round, but the quality of syndicate and what that will mean both for the ability of the company to reach its potential, but also the prospect for the help those investors can provide in enabling us to reach that potential.”

As it progressed this summer toward the marketplace, Vestaron opened new corporate offices in North Carolina that will house administrative staff in marketing, finance, accounting, product development, and other areas. R&D operations will remain in Kalamazoo, where the company began in 2005.

Setting up corporate offices in North Carolina’s Research Triangle positions Vestaron to take advantage of the “really strong agricultural ecosystem (with) both large and small agriculture-focused companies” in the region, while maintaining R&D in Michigan that employs 15 to 20 people.

“We love Michigan. We think it’s a wonderful place to have an R&D team, and obviously the company has benefitted from some tremendous support in the state over time,” Rath said of the Kalamazoo R&D operations. “It just seemed like this was the right decision for where the company was at right now as we are developing an increasingly national presence and taking on that next phase of our life.”


MiBiz
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A few decades ago, the pharmaceutical industry began to undergo a transformation. Previously, research and development in the industry had been predominantly focused on small molecule synthetics and was predominantly conducted by internal R&D groups within the major companies. This model came under pressure as easier targets were addressed, patents on early blockbusters began expiring, and it became clear that while small molecules were effective against their intended targets, they also often had

Boosted by $40 million in private equity money, Vestaron is transitioning from a company that does only research and development to one that produces and markets its own line of crop protection products.

Vestaron boasts a proprietary platform for the optimization and production of peptide-based biopesticides.

When Anna Rath signed on as CEO of Vestaron Corp. 15 months ago, the company was preparing to transition from a focus on R&D to commercializing a line of new environmentally friendly insecticides. 

Since then, the Kalamazoo-based Vestaron put in place a senior management team led by Rath, built up internal capabilities, brought its first products to market, formed its first distribution relationships, moved contract production from Europe to the Midwest, and secured $40 million in financing “from a really top-shelf group of investors.”

Since then, the Kalamazoo-based Vestaron put in place a senior management team led by Rath, built up internal capabilities, brought its first products to market, formed its first distribution relationships, moved contract production from Europe to the Midwest, and secured $40 million in financing “from a really top-shelf group of investors.”