MustGrow: Gaining Momentum
The MustGrow story is now clearly gathering pace. MustGrow is a Canadian AgTech company focused on natural active ingredients derived from mustard seeds for agricultural applications. The biological soil fertility product TerraSante™ is primarily designed to support soil biology and the microbiome. TerraMG™, the pre-registered mustard-derived biocontrol product, is designed to protect against soil-borne nematodes and fungal pathogens. Having consistently divested itself of the distribution of low-margin third-party products and shifted its focus to its own biological solutions, the quality of the new business model is already becoming apparent. Despite the expected decline in turnover in the first half of 2026, MustGrow has managed to move into profit. At the same time, MustGrow is ramping up sales of TerraSante™ and expanding production capacity through third-party manufacturers.
In August, the first milestone payment from Bayer also attracted attention. MustGrow therefore appears to be moving from the restructuring phase into the scaling phase. This also brings GBC Research’s price target back into focus. Analysts believe the MustGrow share could reach a price of EUR 1.66. The share is currently trading at around EUR 0.23. Following the milestone announcement in August, it briefly reached EUR 0.34. This could present an attractive entry opportunity at the current level.
The second half of the year should continue to impress. According to the company, demand for TerraSante™ already exceeded the volumes delivered in the first half of the year, as contract manufacturers first had to bring new production lines online. At the same time, the switch from expensive air freight to significantly cheaper sea freight is expected to improve margins in future. With CAD 4.4 million in cash and cash equivalents, MustGrow also has a solid financial footing. The company has already indicated strong performance in the second half of the year. By August 15, TerraSante™ turnover for 2026 had already reached CAD 0.9 million, which is more than 46% higher than the total TerraSante™ turnover for the 2025 financial year.
And then there is the partnership with Bayer for TerraMG™. In August, the German agricultural and pharmaceutical group made the first milestone payment under the licence and collaboration agreement concluded at the end of 2023. The payment was tied to progress in technical development and underscores that the joint development of MustGrow’s mustard-based biocontrol technology is advancing. According to MustGrow’s estimates, the potential value from upfront payments, milestone payments and development work over the next five to seven years is around USD 35 to 40 million. In the event of successful commercialization, licensing fees and revenue from production could provide additional upside. MustGrow currently has a market capitalization of around CAD 30 million.
The agreement covers Europe, the Middle East and Africa (EMEA). Within the licensed territory, Bayer will assume key responsibilities such as product development, regulatory studies, regulatory submissions, registration and, at a later stage, marketing and sales. MustGrow itself will incur only limited additional costs in this regard.
The first payment represents further external validation of MustGrow’s own TerraMG™ technology by one of the world’s leading agricultural groups. Furthermore, the partnership demonstrates that biological crop protection solutions are becoming increasingly strategically important to major market players. Should further development and regulatory milestones be achieved, Bayer could become a significant value driver for MustGrow.
https://youtu.be/XFGCBf1w8mg?si=E1pvtix0buQcpoN7
Bayer Steps on the Gas in Crop Science
The progress made with MustGrow is all the more significant because partner Bayer is strongly committed to new biological and technology-based solutions in the Group’s future product portfolio.
Bayer has announced an intensive phase of new product launches for its Crop Science division. With the insecticide Plenexos™ and the Preceon™ Smart Corn System, two potential blockbusters are currently in the commercialization phase. Further products are set to follow in the coming years, including Vyconic™ in the soya sector and Intacta 5+™ for Brazil. Overall, Bayer aims to bring 10 blockbuster products to market within 10 years, each with a peak sales potential of at least EUR 500 million. The Leverkusen-based company sees particularly great potential in the soya sector. New herbicide-tolerant and insect-resistant traits are expected to achieve a combined peak sales potential of more than EUR 3 billion.
At the same time, Bayer is continuing to expand its research and development pipeline. A key focus is on AI-supported precision breeding, genome editing and the CropKey platform. With CropKey, more than 15 novel modes of action are currently in the research phase. In addition, Bayer is developing genome-edited, more stable soya beans, as well as a new generation of herbicide-tolerant traits, which are also expected to confer tolerance to the new herbicide Icafolin in the future. For Icafolin itself, Bayer expects peak sales potential of around EUR 750 million in the mid-2030s.
On the cost side, Bayer has so far saved nearly EUR 400 million as part of the 5-year program launched in 2025. In addition, 5 active ingredients have been divested, and more than 100 crop protection formulations have been discontinued. By the end of the decade, EBITDA before exceptional items is expected to rise by EUR 1 billion. By 2029, free operating cash flow is set to climb to more than EUR 3 billion. At the same time, Bayer is targeting more than EUR 3.5 billion in additional revenue, adjusted for currency effects, by the end of the decade. The main drivers of growth are expected to be new products, gains in market share and the geographical expansion of existing technologies.
Bayer’s share price has risen by almost 29% this year and is currently trading at around EUR 49. Last week, JPMorgan welcomed the 5-year plan and reaffirmed its “Overweight” recommendation. Analysts estimate the fair value of Bayer’s share at EUR 61.
Evotec: Will the Share Price Slip Below EUR 3?
Evotec’s share price continues to struggle. In the past month alone, the biotech company’s share price has fallen by more than 7%. So far this year, the decline stands at a steep 42%. The share is currently trading just above EUR 3, its lowest level since early 2026. Even at this seemingly low level, analysts are conspicuously reluctant to issue “Buy” recommendations.
The latest company announcement has also failed to provide any fresh momentum. Evotec and Plectonic Biotech have agreed to a research collaboration to develop new T-cell-activating therapeutic approaches for solid tumors. This will involve combining Evotec’s BiTco platform with Plectonic’s LOGIBODY technology. The aim is to make tumor recognition more precise while simultaneously improving the activation and persistence of T-cells within the tumor microenvironment. The partners intend to investigate whether this can overcome key weaknesses of conventional T-cell engagers in solid tumors.
As part of the collaboration, preclinical proof-of-concept data will initially be generated. Plectonic’s LOGIBODY technology is designed to activate T cells only upon recognition of a defined combination of multiple tumor antigens, whereas Evotec’s BiTco approach provides an additional costimulatory signal via CD2. Financial details of the agreement were not disclosed. Both companies point out that their respective platforms have already been investigated preclinically and are now being tested in combination for the first time.
The progress at MustGrow is clearly evident. The company has managed to move into profit even with lower turnover. The partnership with Bayer is also beginning to bear fruit. Analysts’ price targets indicate significant upside potential. Bayer appears to be refocusing on its core business. Analysts are correspondingly positive. As for Evotec, there is currently no compelling reason to buy the shares, even though a rebound appears possible at any time.
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