WEBVTT - Marrone Bio's CEO on Developing Biological Pesticides (Audio)

0:00:04.080 --> 0:00:08.680
<v Speaker 1>Broadcasting live to New York, Bloomberg eleventh to Washington, d C,

0:00:08.920 --> 0:00:14.160
<v Speaker 1>Bloomber to Boston, Bluemberg twelve under to San Francisco, Bloomberg

0:00:15.040 --> 0:00:18.759
<v Speaker 1>to the country sum General one nine and around the

0:00:18.800 --> 0:00:22.360
<v Speaker 1>globe the Bluemberg Radio plus Dappen Bloomberg dot Com. This

0:00:22.920 --> 0:00:27.880
<v Speaker 1>is taking Stock, coming up on taking stock bio based products,

0:00:27.880 --> 0:00:31.720
<v Speaker 1>new solutions for pest control along with increased plant health

0:00:31.800 --> 0:00:36.080
<v Speaker 1>and increased crop yields, all using a patent portfolio. We've

0:00:36.120 --> 0:00:39.159
<v Speaker 1>got details. Oh and I love these new pesticides pin

0:00:39.240 --> 0:00:42.519
<v Speaker 1>because they're not harmful to bees, and bees are so important.

0:00:42.560 --> 0:00:46.040
<v Speaker 1>If they disappear, look out planet Earth. Well, let's get

0:00:46.040 --> 0:00:47.720
<v Speaker 1>to the news room now. Charlie Pellett is back with

0:00:47.760 --> 0:00:50.360
<v Speaker 1>a Boomberg business lash and I thank you, Kathleen, thank you, Pim.

0:00:50.400 --> 0:00:52.760
<v Speaker 1>We've got stocks buzzing high right now, with the SMP

0:00:53.280 --> 0:00:56.440
<v Speaker 1>up ten to five, a gain there of five tenths

0:00:56.480 --> 0:00:58.840
<v Speaker 1>of one percent, and has a stack up twenty five

0:00:58.880 --> 0:01:01.920
<v Speaker 1>to fifty two twenty nine, a gain of five tenths

0:01:01.920 --> 0:01:05.319
<v Speaker 1>of one percent down. Industrials up one hundred and sixteen

0:01:05.319 --> 0:01:09.280
<v Speaker 1>points to eighteen thousand, six hundred eleven, a gain there

0:01:09.319 --> 0:01:12.560
<v Speaker 1>of six tenths of one percent. Stocks trading in record

0:01:12.680 --> 0:01:16.880
<v Speaker 1>territory after a batch of surprising earnings. Macy's, for example,

0:01:16.959 --> 0:01:22.080
<v Speaker 1>surging seventeen point five percent after it beat estimates. Retailers

0:01:22.160 --> 0:01:25.800
<v Speaker 1>leading gains in US stocks, Energy companies rallying along with

0:01:25.840 --> 0:01:29.479
<v Speaker 1>the price of crude. West Texas Intermediate crude up three

0:01:29.480 --> 0:01:32.440
<v Speaker 1>point nine percent, up a dollar sixty one a barrel

0:01:32.520 --> 0:01:35.800
<v Speaker 1>to forty three dollars and thirty two cents. What about

0:01:35.800 --> 0:01:39.160
<v Speaker 1>the interest rate environment? Kate Warren is investment strategists at

0:01:39.319 --> 0:01:42.160
<v Speaker 1>Edward Jones, and she spoke this morning with Tom Keane

0:01:42.200 --> 0:01:45.760
<v Speaker 1>on Bloomberg surveillance. I think inslation is beginning to pick up,

0:01:46.080 --> 0:01:48.600
<v Speaker 1>and we actually will see long term rates start to

0:01:48.720 --> 0:01:53.320
<v Speaker 1>rise as bond markets reflective slightly higher inflation rates. But

0:01:53.440 --> 0:01:56.240
<v Speaker 1>I think the Fed is very much waiting for better

0:01:56.320 --> 0:01:59.960
<v Speaker 1>economic growth and numbers. We've got the tenure down twenty

0:02:00.000 --> 0:02:03.160
<v Speaker 1>on thirty seconds, the yield there one point five six percent.

0:02:03.680 --> 0:02:07.240
<v Speaker 1>Records in US stocks getting harder for strategists to ignore.

0:02:07.280 --> 0:02:10.959
<v Speaker 1>Wells Fargo become becoming just the second of twenty one

0:02:11.000 --> 0:02:13.960
<v Speaker 1>firms tracked by Bloomberg to raise its target for the

0:02:14.080 --> 0:02:17.640
<v Speaker 1>SMP five hundred index, since the measure surged past the

0:02:17.639 --> 0:02:21.600
<v Speaker 1>group's average year end prediction a month ago. Gina Martin Adams,

0:02:21.639 --> 0:02:24.880
<v Speaker 1>the bank's chief US equity strategist, now expects the benchmark

0:02:24.960 --> 0:02:28.200
<v Speaker 1>for US stocks to climb to twenty two hundred in

0:02:28.280 --> 0:02:32.760
<v Speaker 1>twelve months. Again. The SMP five hundred index now at five,

0:02:32.840 --> 0:02:35.720
<v Speaker 1>up today by five tenths of one percent. Gold down

0:02:35.720 --> 0:02:38.320
<v Speaker 1>eight dollars. The ounce the thirteen thirty nine, the drop

0:02:38.360 --> 0:02:41.480
<v Speaker 1>of six tenths of one percent three thirty two on

0:02:41.520 --> 0:02:45.480
<v Speaker 1>Wall Street. Now the other stories making news. Thank you

0:02:45.560 --> 0:02:48.320
<v Speaker 1>Charlie from the Bloomberg Newsroom. I'm a Lisa PARENTI. This

0:02:48.360 --> 0:02:50.880
<v Speaker 1>news update is brought to you by Blue Jeans Enterprise

0:02:50.960 --> 0:02:55.359
<v Speaker 1>Video Cloud. See faces, emotions, Energy, see the people your

0:02:55.400 --> 0:02:58.280
<v Speaker 1>team's video from any device. Start a free thirty day

0:02:58.280 --> 0:03:01.440
<v Speaker 1>trial at blue jeans dot com and click the radio Mike,

0:03:01.639 --> 0:03:06.480
<v Speaker 1>Blue Jeans, Work Smarter, Connect Better. Democratic presidential candidate Hillary

0:03:06.480 --> 0:03:09.880
<v Speaker 1>Clinton unveiled her economic plan in Michigan today. Clinton took

0:03:09.880 --> 0:03:12.840
<v Speaker 1>the chance to attack her Republican rival. I know my

0:03:12.960 --> 0:03:16.440
<v Speaker 1>opponent in this election was here in Michigan about a

0:03:16.480 --> 0:03:19.000
<v Speaker 1>week ago, and it was like he was in a

0:03:19.040 --> 0:03:24.079
<v Speaker 1>different place when he visited Detroit on Monday. He talked

0:03:24.200 --> 0:03:28.720
<v Speaker 1>only a failure poverty and crime. He is missing so

0:03:28.800 --> 0:03:34.920
<v Speaker 1>much about what makes Michigan great. Meanwhile, Donald Trump is

0:03:34.920 --> 0:03:38.080
<v Speaker 1>pledging to limit what he called horrible regulations facing the

0:03:38.120 --> 0:03:41.360
<v Speaker 1>home builder industry. Today in Miami, he talked about the

0:03:41.360 --> 0:03:45.400
<v Speaker 1>difficulty for prospective buyers to get mortgages. He also called

0:03:45.440 --> 0:03:49.600
<v Speaker 1>for a major simplification of the tax code. Swedish prosecutors

0:03:49.680 --> 0:03:52.960
<v Speaker 1>will get to question Wiki Leaks founder Julian Assange about

0:03:53.040 --> 0:03:56.960
<v Speaker 1>rape allegations. They'll meet at Ecuador's embassy in London, where

0:03:57.040 --> 0:04:00.400
<v Speaker 1>Sange has been holed up since he to go to

0:04:00.440 --> 0:04:04.440
<v Speaker 1>Sweden fearing extradition to the US. And New York is

0:04:04.480 --> 0:04:07.360
<v Speaker 1>awarding more than eight million dollars in legal help for

0:04:07.480 --> 0:04:10.920
<v Speaker 1>people who have been denied federal disability benefits. State officials

0:04:10.920 --> 0:04:14.360
<v Speaker 1>say the federal appeals process can be difficult, but seventy

0:04:14.440 --> 0:04:16.880
<v Speaker 1>three of those who receive legal help in New York

0:04:17.160 --> 0:04:21.520
<v Speaker 1>recently were awarded federal disability benefits. Global News twenty four

0:04:21.560 --> 0:04:24.160
<v Speaker 1>hours a day, powered by more than twenty d journalists

0:04:24.160 --> 0:04:27.040
<v Speaker 1>and analysts and more than one hundred twenty countries. I'm

0:04:27.080 --> 0:04:31.640
<v Speaker 1>a Lisa PARENTI This is Bloomberg, Charlie, and we thank you,

0:04:31.640 --> 0:04:34.240
<v Speaker 1>and we're brought to you by Sector Spider e t

0:04:34.480 --> 0:04:36.520
<v Speaker 1>f S. Why buy a single stock when you can

0:04:36.560 --> 0:04:40.120
<v Speaker 1>invest in the entire sector of visits sector sp d

0:04:40.360 --> 0:04:45.119
<v Speaker 1>rs dot com or call sector e t F again

0:04:45.160 --> 0:04:50.000
<v Speaker 1>recapping stocks trading at a record SMP up eleven six,

0:04:50.040 --> 0:04:53.119
<v Speaker 1>a gain of five tenths of one percent. I'm Charlie Pellet.

0:04:53.320 --> 0:04:58.240
<v Speaker 1>That's a Bloomberg business flash. He's taking stuff with Kathleen

0:04:58.279 --> 0:05:01.560
<v Speaker 1>Hayes and Pim Fox One Word Radio. Are you one

0:05:01.720 --> 0:05:05.120
<v Speaker 1>of many, not only Americans, but people around the world

0:05:05.160 --> 0:05:10.080
<v Speaker 1>who are concerned about pesticides, about chemicals on the food

0:05:10.120 --> 0:05:14.120
<v Speaker 1>that is grown to take to their table for dinner. Well,

0:05:14.160 --> 0:05:16.480
<v Speaker 1>if you are concerned about that, and if you're an

0:05:16.480 --> 0:05:19.680
<v Speaker 1>investor as well, you might want to be uh very

0:05:19.760 --> 0:05:24.599
<v Speaker 1>focused on our next guest enter biopesticides and Dr Pam Maron.

0:05:24.720 --> 0:05:28.359
<v Speaker 1>She's founder and CEO of Marone Bio Innovation. She's joining

0:05:28.400 --> 0:05:31.440
<v Speaker 1>us today from Davis, California, which is about twenty minutes

0:05:31.480 --> 0:05:35.560
<v Speaker 1>from Sacramento, very important agricultural area of this country. Dr Maron, welcome,

0:05:35.839 --> 0:05:39.800
<v Speaker 1>Thank you. So first of all, tell us what our biopesticides.

0:05:40.640 --> 0:05:45.159
<v Speaker 1>So these are naturally occurring products. They're derived from natural substances,

0:05:45.279 --> 0:05:51.600
<v Speaker 1>could be naturally occurring bacteria or mold or extracts of plants,

0:05:52.040 --> 0:05:56.359
<v Speaker 1>and they non toxic, low risk. What are they made of,

0:05:56.520 --> 0:06:00.560
<v Speaker 1>I mean, so they could be um an actual plant

0:06:00.720 --> 0:06:04.320
<v Speaker 1>that you extract from. So you could dry take a

0:06:04.680 --> 0:06:07.080
<v Speaker 1>like we have a product that actually is from not weed,

0:06:07.560 --> 0:06:10.479
<v Speaker 1>and you dry the not weed, You harvest the notweed wild,

0:06:10.520 --> 0:06:12.120
<v Speaker 1>you dry it and then you put it in a

0:06:12.120 --> 0:06:15.480
<v Speaker 1>big vat of alcohol and um hot alcohol, and then

0:06:15.680 --> 0:06:18.680
<v Speaker 1>and then for thirty minutes you come out and extract

0:06:19.200 --> 0:06:22.279
<v Speaker 1>um like like you're making a tincture, you know, for

0:06:22.360 --> 0:06:25.159
<v Speaker 1>your own self from lavender or something like that. But

0:06:25.240 --> 0:06:28.520
<v Speaker 1>then these pesticiddle compounds, natural products that come out of

0:06:28.520 --> 0:06:31.040
<v Speaker 1>that extract you can spray on the crop and ward

0:06:31.080 --> 0:06:34.000
<v Speaker 1>off potty milk jewics and increase your growth and yields

0:06:34.000 --> 0:06:37.240
<v Speaker 1>of crops. Can we just put aside the technology and

0:06:37.279 --> 0:06:38.840
<v Speaker 1>the science for just a second. I want to ask

0:06:38.839 --> 0:06:41.720
<v Speaker 1>a little bit about the financials of the company. Why

0:06:41.839 --> 0:06:44.760
<v Speaker 1>go public at this stage, because I mean, looking at

0:06:44.800 --> 0:06:47.880
<v Speaker 1>the stock, it's down about six percent year to day,

0:06:48.240 --> 0:06:51.080
<v Speaker 1>and it's got a market cap of about twenty million.

0:06:51.560 --> 0:06:55.200
<v Speaker 1>Why go public at such a point, wouldn't it. I

0:06:55.240 --> 0:06:58.719
<v Speaker 1>always thought the company would go public after they were

0:06:58.839 --> 0:07:02.000
<v Speaker 1>UH law archer and more profitable and and and had

0:07:02.040 --> 0:07:05.120
<v Speaker 1>a wider distribution network. So when we went public in

0:07:05.160 --> 0:07:08.600
<v Speaker 1>twenty thirteen, things looked great for the company and UM,

0:07:08.640 --> 0:07:12.240
<v Speaker 1>you know, all systems go and we thought we could, um,

0:07:12.320 --> 0:07:14.160
<v Speaker 1>UH will be the pure We're only a pure play.

0:07:14.200 --> 0:07:16.560
<v Speaker 1>We're the only pure play biopas side coming on the market,

0:07:16.760 --> 0:07:18.640
<v Speaker 1>and it would give us greater access to capital and

0:07:18.680 --> 0:07:23.920
<v Speaker 1>grow faster and H Then there were a series of

0:07:23.960 --> 0:07:28.480
<v Speaker 1>events that UH caused a restatement of the of the

0:07:28.640 --> 0:07:30.560
<v Speaker 1>of our financials and I don't really want to get

0:07:30.600 --> 0:07:33.880
<v Speaker 1>into that, and UH drove the stock down. UM, so

0:07:33.960 --> 0:07:37.440
<v Speaker 1>it took a little rebuilding of the company, and which

0:07:37.440 --> 0:07:40.640
<v Speaker 1>is where we are today. And we're building momentum upon

0:07:40.840 --> 0:07:45.040
<v Speaker 1>some negative past events and we're back. So who who

0:07:45.040 --> 0:07:48.160
<v Speaker 1>are your competitors in this field? Well, we have some

0:07:48.320 --> 0:07:52.240
<v Speaker 1>very large companies. They would be like there and B

0:07:52.600 --> 0:07:55.520
<v Speaker 1>s F and du Pont and they're also developing biopaths

0:07:55.520 --> 0:07:58.440
<v Speaker 1>decide they're selling chemicals, but they have some of them

0:07:58.640 --> 0:08:02.040
<v Speaker 1>have made acquisitions Biopest side companies because of the growth

0:08:02.080 --> 0:08:04.360
<v Speaker 1>in this segment and that you can't meet all of

0:08:04.400 --> 0:08:08.280
<v Speaker 1>customer needs with chemicals. For example, um global movement of

0:08:08.280 --> 0:08:12.400
<v Speaker 1>food that foods gets moved around globally and consumers don't

0:08:12.440 --> 0:08:16.080
<v Speaker 1>like chemical pest side residues on their food. So our

0:08:16.080 --> 0:08:17.880
<v Speaker 1>products can be used right up to harvest and you

0:08:17.920 --> 0:08:20.360
<v Speaker 1>don't have to worry about chemical residues because they don't

0:08:20.400 --> 0:08:23.920
<v Speaker 1>leave chemical residues. So so that provides an opportunity where

0:08:23.920 --> 0:08:28.920
<v Speaker 1>a chemical can't. As far as the business of these

0:08:29.000 --> 0:08:33.679
<v Speaker 1>kinds of bio of products, does it really depend on

0:08:33.880 --> 0:08:38.280
<v Speaker 1>having the right patent library. All of the products in

0:08:38.280 --> 0:08:42.120
<v Speaker 1>this industry are generally patented, so there's this extreme amount

0:08:42.160 --> 0:08:44.720
<v Speaker 1>of intellectual property and patents behind our products. So we

0:08:44.760 --> 0:08:49.120
<v Speaker 1>actually do patent the substance, the natural occurring substance that

0:08:49.160 --> 0:08:52.160
<v Speaker 1>we find, so someone can't then just take it and

0:08:52.400 --> 0:08:58.000
<v Speaker 1>duplicate it. Yeah, so where do you go next? Do

0:08:58.040 --> 0:09:01.360
<v Speaker 1>you do you continue to expand what you have? Uh?

0:09:01.559 --> 0:09:05.920
<v Speaker 1>Do you develop new products? Is it marketing? It seems

0:09:05.960 --> 0:09:07.920
<v Speaker 1>to me like as I said, there's a growing demand

0:09:07.960 --> 0:09:12.560
<v Speaker 1>for this kind of product right there is hugely growing

0:09:12.559 --> 0:09:14.320
<v Speaker 1>and I think to me, it's kind of hyperbolic so

0:09:14.360 --> 0:09:17.040
<v Speaker 1>what do how do you capture that? Well, it is

0:09:17.120 --> 0:09:19.080
<v Speaker 1>come it does come down with our products. So we

0:09:19.200 --> 0:09:21.840
<v Speaker 1>focus on what are unmet needs in the marketplace, So

0:09:21.880 --> 0:09:25.280
<v Speaker 1>what do the growers want, and that would be um

0:09:25.360 --> 0:09:28.520
<v Speaker 1>new solutions for something like nematodes. Nematodes are round worms

0:09:28.559 --> 0:09:31.319
<v Speaker 1>that feed on the roots of plants. So we are

0:09:31.720 --> 0:09:35.679
<v Speaker 1>discovery operations swung into action and we discovered a bacteria,

0:09:35.720 --> 0:09:39.120
<v Speaker 1>a new species that produces substances that kill these roundworms.

0:09:39.280 --> 0:09:41.280
<v Speaker 1>So you can apply it in the soil and it

0:09:41.280 --> 0:09:43.960
<v Speaker 1>gives a healthier plant and kills the nematodes and much

0:09:44.000 --> 0:09:48.320
<v Speaker 1>better yield of more fruit and more vegetables. So it

0:09:48.480 --> 0:09:52.960
<v Speaker 1>comes through innovation. So that's our company by having multiple

0:09:53.000 --> 0:09:57.240
<v Speaker 1>products and kill insects, kill nematodes, kill plant diseases, and

0:09:57.320 --> 0:09:59.400
<v Speaker 1>we are working on a weed killer, which is really

0:09:59.440 --> 0:10:04.440
<v Speaker 1>important for both organic and um traditional farming because for organic,

0:10:04.760 --> 0:10:06.480
<v Speaker 1>one of the reasons the cost of organic is so

0:10:06.559 --> 0:10:09.679
<v Speaker 1>high is because the cost of weed control it's really

0:10:09.679 --> 0:10:12.839
<v Speaker 1>hard with organic. And then on the traditional side, weeds

0:10:12.840 --> 0:10:16.120
<v Speaker 1>have developed resistance to the chemical herbicides and we're going

0:10:16.160 --> 0:10:18.480
<v Speaker 1>to try to solve that solution as well. Thank you

0:10:18.559 --> 0:10:20.800
<v Speaker 1>very much for coming in and giving us this insight

0:10:20.840 --> 0:10:23.800
<v Speaker 1>into a new and uh we help burgeoning market. Dr

0:10:23.840 --> 0:10:26.840
<v Speaker 1>Pam Maron is the founder and the chief executive of

0:10:26.920 --> 0:10:32.280
<v Speaker 1>Marone Bio Innovations. They are based in Davis, California. This

0:10:32.400 --> 0:10:35.560
<v Speaker 1>is taking Stock. I'm Pim Fox. My co host Kathleen

0:10:35.640 --> 0:10:39.880
<v Speaker 1>Hayes coming up. We'll be speaking about your money. We've

0:10:39.920 --> 0:10:42.920
<v Speaker 1>got Oliver Chen he is the senior retail analyst at

0:10:42.960 --> 0:10:47.479
<v Speaker 1>Cowen and Company. We're gonna give you some detail about retail. Macy's.

0:10:47.640 --> 0:10:51.440
<v Speaker 1>The shares higher today by more than fifteen percent after

0:10:51.480 --> 0:10:56.520
<v Speaker 1>announcing that they will close about one hundred stores. This

0:10:56.880 --> 0:11:06.079
<v Speaker 1>is Bloomberg m H. Bloomberg. Taking Stock is brought to

0:11:06.080 --> 0:11:07.880
<v Speaker 1>you by your Mercedes Benz Tri State deal of the

0:11:07.880 --> 0:11:10.760
<v Speaker 1>Mercedes has been certified pre owned sales event this months.

0:11:10.800 --> 0:11:12.880
<v Speaker 1>Take advantage of limited time offers on the vehicle of

0:11:12.920 --> 0:11:15.080
<v Speaker 1>your dreams sorted more at nbus dot com slash Sea