Vancouver, British Columbia and Rehovot, Israel--(Newsfile Corp. - March 31, 2026) - BioHarvest Sciences Inc. (NASDAQ: BHST) (FSE: 8MV0) ("BioHarvest" or the "Company"), a leader in Botanical Synthesis technology and sustainable plant-based molecule development, today announced that its CDMO division has successfully completed Stage 1 of a multi-stage development program for a rare scent-producing plant used in the global fragrance industry. The program is being conducted under a contract signed approximately one year ago, and represents what BioHarvest believes to be the first-ever successful creation of a stable cell culture for this rare and endangered fragrance plant.
This milestone positions BioHarvest to enter the growing premium fragrance segment, estimated to represent a $23B market opportunity within the global $58.9B scents and fragrances industry*. This particular scent is widely regarded as one of the most valuable fragrance raw materials in the world, with premium grades commanding prices exceeding tens of thousands of U.S. dollars per kilogram and demand growing across the Middle East, Asia, and luxury Western perfume markets.
Ilan Sobel, CEO of BioHarvest Sciences, commented, "This first-ever achievement marks a major breakthrough for BioHarvest and represents a significant expansion into one of the most valuable segments of the global fragrance industry. Successfully creating stable cell cultures for such a unique plant demonstrates the power of our Botanical Synthesis platform and reinforces our ability to unlock rare, high-value plant-derived molecules at industrial scale. This milestone also strengthens our royalty-driven CDMO model and creates long-term value opportunities for our shareholders."
The development was achieved using BioHarvest's proprietary Botanical Synthesis Platform Technology, which enables the production of rare plant-derived fragrance compounds without the need to cultivate or harvest the original plant, which is classified as an endangered species and typically grows only in highly specific regions of Southeast Asia.
The rare molecules responsible for the scent and aroma of this highly coveted plant, including sesquiterpenes and chromones, were successfully identified in the Stage 1 cell cultures, with molecular profiles closely matching those found in the original plant. This achievement demonstrates the ability of BioHarvest's platform to replicate highly complex plant-based fragrance compositions, that include but not limited to the terpene's family of molecules, previously considered difficult or impossible to reproduce sustainably. Sesquiterpenes are natural plant compounds that help keep plants protected from environmental challenges. They are of interest for use in fragrances because they evaporate slowly, and as such they act as the base-notes giving scents their depth and a long-lasting aroma.
Under the terms of the stage 1 agreement, BioHarvest retains 20% ownership of the compositions developed through this multi-stage program, creating a long-term royalty-driven economic model as development advances toward commercialization. This structure aligns with BioHarvest's evolution from a traditional CDMO to a Partner Development and Manufacturing Organization (PDMO), where the company participates directly in downstream value creation.
The Major Principal of this partner firm, which is a prominent United Arab Emirates -based investment group**, commented, "We are highly encouraged by the successful completion of Stage 1 and the progress achieved by BioHarvest. This milestone validates both the scientific strength of the Botanical Synthesis platform and the commercial potential of sustainable plant-derived fragrance compositions. We look forward to advancing to Stage 2 and ultimately bringing these rare and valuable fragrance ingredients to global markets."
With Stage 1 now completed, BioHarvest is ready to advance to Stage 2, where cells stored in a proprietary cell bank will be propagated in liquid medium to generate significant biomass. Once stage 2 commences, this biomass is expected to be available for pre-commercial testing within 6 to 9 months, with full development and industrial-scale manufacturing anticipated within 12 to 18 months.
Importantly, this development is expected to serve as a template for multiple future fragrance programs using BioHarvest's Botanical Synthesis platform. The successful creation of stable cell cultures containing complex fragrance molecules demonstrates the company's ability to systematically target additional rare and high-value fragrance plants, potentially unlocking a pipeline of development programs across premium fragrance categories. BioHarvest believes this capability significantly expands the addressable market opportunity for its CDMO division and strengthens its long-term royalty-driven growth strategy.