BioHarvest Sciences Inc. (NASDAQ: BHST) has announced a strategic contract development and manufacturing organization (CDMO) partnership with Saffron Tech to revolutionize the production of saffron-derived compounds using its patented Botanical Synthesis technology platform. The collaboration addresses critical supply chain challenges facing saffron, the world's most expensive spice that retails for over $10,000 per kilogram.
Addressing Saffron's Production Challenges
Saffron's extraordinary cost stems from its labor-intensive cultivation process, requiring the hand-harvesting of 150,000 Crocus sativus flowers to produce just one kilogram of the spice. Iran dominates global production with over 80% market share, making the supply chain vulnerable to geopolitical instability, climate change, and seasonal constraints. Traditional cultivation is limited to specific regions including Iran, Spain, and Kashmir, where production faces ongoing challenges from political instability and manual labor shortages.
Founded in 2020, Saffron Tech has pioneered advanced cultivation methods and is the first company to successfully produce multiple cycles of top-grade saffron year-round through its proprietary Controlled Environment Agriculture system. The company achieves yields up to 44 times higher than traditional methods while maintaining consistent quality.
Partnership Structure and Technology Integration
Under the partnership agreement, BioHarvest and Saffron Tech will collaborate to develop and commercialize saffron-derived botanical compounds using BioHarvest's Botanical Synthesis platform, which enables consistent, scalable, and cost-effective production of plant-based molecules without growing the plant itself. The initiative covers both Stage 1 and Stage 2 of CDMO development, with solid-phase and liquid-phase work conducted simultaneously to accelerate time to market.
The partnership combines BioHarvest's bioreactor-based manufacturing scale and cell-growth expertise with Saffron Tech's specially cultivated saffron species and existing saffron cell-culture research. Saffron Tech will own 75% of the developed saffron compositions, ownership IP and commercial rights, while BioHarvest will hold the remaining 25%.
"We will leverage our Botanical Synthesis platform technology to research and develop saffron's valuable bioactive compounds so that they can be produced consistently, economically, and sustainably — eliminating the need for large-scale cultivation, seasonal constraints, and geopolitical dependencies," said Dr. Zaki Rakib, Chairman and Head of BioHarvest's CDMO division.
Commercial Applications and Market Potential
Upon completion of the development phases, BioHarvest intends to manufacture the compound at large scale and market it through its direct-to-consumer e-commerce business by developing nutraceutical products leveraging saffron's functional benefits, which include cognitive function, eye health, and antioxidant properties.
Michael Oster, CEO of Saffron Tech, emphasized the partnership's potential: "Partnering with BioHarvest enables us to move from cultivation to cell-based production, an approach that can finally unlock saffron's true potential in health, nutrition, and wellness markets. The combination of solid-phase and liquid-phase development will fast-track innovation while building on our existing saffron cell lines."
The collaboration aims to transform saffron ingredient production from a field-based crop to a cell-based, precision-controlled process, ensuring stable supply, reproducible quality, and reduced environmental footprint as global demand for saffron-based wellness and functional food products continues to grow rapidly.
Financial Performance and Outlook
Concurrent with the partnership announcement, BioHarvest provided preliminary unaudited revenue guidance for the third quarter of 2025 of approximately $9.1M, in line with management guidance, with an expected unaudited adjusted EBITDA range of ($0.7M) to ($0.4M). Cash and cash equivalents as of September 30, 2025, totaled approximately $11M.
The company provided fourth quarter 2025 guidance with a revenue range of $9-9.5M and adjusted EBITDA expected in the range of ($0.6M) to $0.0M. CEO Ilan Sobel noted that Q3 2025 was highlighted by growth in both the VINIA® business and CDMO Services business, with upcoming product launches including VINIA® BloodFlow Hydration on November 7 and Phase 2 of the Health Pros affiliate program rolling out in November.
"We believe we are well positioned to reach adjusted EBITDA breakeven in the near term and we remain on track to achieve long-term growth for our business," Sobel stated.
