Arkadia Biosciences RKDA Stock News

Arcadia Biosciences Inc (NASDAQ: RKDA) is making a run for the top in the market this morning, trading on gains of more than 39% thus far. The gains come after the company announced that its joint venture with Bioceres Crop Solutions Corp (NYSEAMERICAN: BIOX) has received approval from the USDA. Here’s what’s happening:

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RKDA Stock Is Soaring On USDA Approval

Arcadia Biosciences issued a press release in after-hours yesterday, announcing that its joint venture, Verdeca, has received USDA approval for a key product. The product is known as HB4 and is a strain of drought tolerant soybeans.

The approval from the United States Department of Agriculture means that HB4 soybeans can now be commercialized in the United States market.

In a statement, Martin Mariani Ventura, GM at the RKDA joint venture, Verdeca, had the following to offer:

HB4 is a novel soybean trait that enhances the traditional herbicide tolerance package to provide yield stability across diverse environments. Approval of this technology in the United States is a significant step for the successful commercialization of HB4 technology in the global soybean market.

This News Is Significant

The news that the USDA has approved the HB4 trait in soybeans is incredibly positive. After all, this means that the product can now be sold in more than 80% of the global soybean market.

The approval follows recent approvals in Argentina and Brazil. The HB4 soybean strain is also under review in China, Paraguay Bolivia and Uraguay.

It’s also worth mentioning that soybeans are a very important crop in the United States. In fact, the US accounts for more than 30 million hectacres of the crop.

Unfortunately, production was drastically reduced in the 2019 growing season due to too much water as well as heat stress. The HB4 soybean crop will not only protect farmers from heat, but also from overly wet seasons.

In a statement, Raj Ketkar, President and CEO at RKDA, had the following to offer:

Trials in Argentina have shown a positive impact of the HB4 trait stack on soybeans there. The USDA and FDA approvals are important steps in our continued drive to commercialize this trait in key markets.

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