What's Happening?
Wide Open Agriculture (WOA), a Perth-based company specializing in lupin protein ingredients, has renegotiated its global technology license with Curtin University. The revised agreement aims to improve
the company's unit economics by replacing a tiered royalty structure with a flat rate of 3.5% of net sales. This change eliminates the previous requirement of paying $120 per tonne plus 12.5% of revenue above $6,000 per tonne. Additionally, the minimum annual royalty has been reduced from a three-year ramp-up to $75,000 to a flat $50,000. The renegotiation is part of WOA's strategy to transition from pilot-scale operations to commercial volumes through contract manufacturing, avoiding the capital expenditure of building its own plant. The company holds an exclusive worldwide license to Curtin's lupin protein concentrate technology, which is central to its product line. The new terms are expected to support the commercialization of WOA's 'whole lupin seed' approach.
Why It's Important?
This renegotiation is significant as it positions Wide Open Agriculture to better compete in the global protein market by improving its pricing competitiveness and production capabilities. The simplified royalty structure provides a clearer basis for long-term planning and supports the company's focus on commercializing its lupin-based products. As Australia is the largest producer of sweet lupins, this development could enhance the country's position in the plant-based food ingredients market, offering an alternative to soy and pea protein. The agreement also reflects Curtin University's commitment to supporting WOA's commercialization efforts, potentially leading to increased royalty revenue for the university as WOA scales its production.
What's Next?
With the renegotiated license in place, Wide Open Agriculture plans to focus on scaling its production through contract manufacturing arrangements. This strategy is expected to facilitate the company's transition from pilot-scale operations to commercial volumes, enabling it to secure larger customer contracts and grow its market presence. The company will continue to collaborate with Curtin University on technology development and research and development efforts, further strengthening their partnership. As WOA progresses toward scaled production, it aims to fully monetize the whole lupin seed across multiple applications, potentially expanding its market reach and impact.
