Marrone Bio Innovations

Market position

The company operates in the biologicals segment of crop protection, described in 2019 as an international participant in sustainable bioprotection and plant health solutions. Its founder characterized it as the only publicly traded company focused exclusively on biologicals, a sector described as rapidly growing and competitive, with rivals including venture-funded entrants such as Indigo Agriculture and established players such as Mitsui-owned Certis USA.

Products are naturally derived and pest-specific, avoiding harm to beneficial insects such as lady beetles and honey bees, in contrast to synthetic chemical sprays that attack the nervous systems of insects and other mammals. Natural product development is described as faster and less costly than synthetic chemical development. The company combines a large screening library and patent portfolio with coverage of bioprotection, biostimulant and bionutrition categories.

Technology

The platform combines screening of microorganisms and plant extracts (over 18,000 microorganisms and 350 plant extracts screened as of 2019) with knowledge of plant and soil microbiomes, advanced molecular technologies and natural product chemistry. Products use naturally derived active ingredients, such as giant knotweed extract in the Regalia biofungicide, that act on target pests without broad-spectrum effects on beneficial insects. The acquired Pro Farm technology employs a new mode of action to stimulate plant growth and improve plant health in seed and foliar treatments.

Go-to-market

Sales are supported by field trial data, grower trade shows and webinars aimed at educating farmers about biological products, which typically act more slowly than chemical sprays. Global reach is achieved through distribution agreements and commercial partnerships, including the Pro Farm-Corteva Agriscience agreement under which Corteva planned to launch corn, sunflower and oilseed rape products in Europe in the 2020/2021 season with target coverage of more than 10 million hectares.

Farmers and growers of row and specialty crops, historically concentrated among growers in California, the Pacific Northwest and the Southeastern United States; via Pro Farm, growers of corn, cereals, sunflowers, oilseed rape (canola), sugar beets and vegetables in Europe and other regions. Products also address waterway systems treatment.

Geography

Headquartered in Davis, California (2121 Second St., Suite A-107, Davis, CA 95618). U.S. sales have been concentrated in California, the Pacific Northwest and the Southeast. Through the Pro Farm subsidiary, the company has offices in Finland, Estonia, Uruguay and Brazil, with distribution agreements covering most major global agricultural production areas, particular strength in Europe and the Commonwealth of Independent States, and expansion under way in Latin America, North America, Africa and Asia.

History

Pamela Marrone founded the company in 2006 in Davis, California, naming it after her father, who died the week before the company was started. Marrone Bio raised $25.4 million in Series C funding in 2011 to expand global sales of Regalia and launch Zequanox. The company completed a NASDAQ initial public offering in 2013, raising $57 million. In 2014 its head of sales was indicted for fraud and the SEC sued the company, leading to layoffs of about half the staff and a $17 million settlement; the company later converted debt into equity and raised $30 million from new investors. In September 2019 it closed the acquisition of Finland-based Pro Farm Technologies OY. In March 2022 the company signed a merger agreement with Bioceres Crop Solutions Corp., and founder Pamela Marrone stepped down as CEO in 2022, subsequently co-founding Invasive Species Corporation and Invasive Species Research Institute with former Marrone Bio president Jim Boyd.

Risks & controversies

In 2014 the company's head of sales was indicted for fraud and the Securities and Exchange Commission brought suit; the company laid off about half of its staff and paid $17 million to settle, after which it recapitalized by converting debt into equity and raising $30 million from new investors. Other stated risks include limited grower understanding of bio-based pest management products, slower action versus chemical alternatives, regulatory decisions, competition in pest management, and integration and cost risks from acquisitions.