BioHarvest Sciences Inc. (NASDAQ: BHST) announced completion of stage 1 under a multi-stage development agreement for saffron composition development. The company established a stable saffron cell bank containing key bioactive compounds including crocin, picrocrocin, and safranal for potential nutraceutical and culinary applications.

The completion triggers advancement to stage 2 of the development agreement, which is valued at $1.125 million. Stage 2 will focus on using BioHarvest's Botanical Synthesis platform to generate biomass for pre-commercial testing and product development.

The development partner is SaffronTech, a company working on advanced saffron cultivation methods. Under the agreement terms, BioHarvest retains 25% ownership of the saffron composition being developed and will earn manufacturing royalties from future production on its platform.

Global saffron production is estimated at 500 to 600 metric tons annually, with prices ranging from $3,000 to over $10,000 per kilogram. The 2025 global saffron market is estimated at nearly $500 million annually, according to market research cited in the announcement.

"Completion of Stage 1 represents another important validation of the versatility of our Botanical Synthesis platform to create sustainable cell banks from scarce botanicals," said Dr. Zaki Rakib, Chief Executive Officer of BioHarvest Sciences.

BioHarvest's Botanical Synthesis technology aims to produce plant-derived compounds without traditional farming methods, potentially addressing supply chain limitations in saffron production. The majority of global saffron production occurs in Iran, where geopolitical tensions can create market volatility.

The information is based on a company press release statement.