Biosys announced Thursday a multiyear manufacturingagreement with Ciba-Geigy Corp. to produce a variety ofbacteria strains for biopesticides.

The pact reaffirms an estimate by Vector SecuritiesInternational analyst Peter Drake that pegs annual revenuesfrom contract manufacturing at $3 million for the Palo Alto,Calif., company, President Venkat Sohoni told BioWorld. He saidthe agreement with Ciba to produce bacillus thuringiensis, theactive ingredient in the Ciba plant-protection division'sbiopesticides, makes this estimate more realistic.

Biosys (NASDAQ:BIOS) will be the exclusive producer of Btstrains for Ciba in North America, and "in all probability" alsowill produce the bacteria for Ciba's international products, too,"Sohoni said.

The biopesticide microbes will be produced at the ArcherDaniels Midland Co. plant in Decateur, Ill., under Biosys'technical direction.

Biosys produces its own nematodes at the plant for controllingturf pest and other insects, and also manufactures baculovirusthere under a joint insecticide venture with Sandoz Agro Inc.

Prior to ratifying Thursday's agreement, Biosys completedsuccessful test runs for Ciba's plant division.

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