Shares of Arcadia Biosciences Inc (NASDAQ:RKDA) increased by double-digits Wednesday after the Trump administration ordered three federal agencies to ease their rules for approving genetically modified crops and other agricultural biotechnology.
President Trump on Tuesday signed an executive order instructing the Agriculture Department, the Food and Drug Administration and the Environmental Protection Agency — which oversee genetically engineered agricultural products — to review their biotech regulations to streamline the approval processes.
Arcadia, based in Davis, California, is an agricultural biotech company that develops high-value food ingredients and nutritional oils that aim to meet the demand for healthier diets. It also produces a GMO soybean.
The company’s stock closed up 19.6% to $5.91 a share.
The White House wants to bring new agricultural biotechnology to the marketplace faster and with less cost for companies. Also the Trump administration hopes to encourage more investment in GMO crops.
Trump’s executive order comes after the US Agriculture Department last week proposed sweeping changes to biotech rules that would exempt from regulation genetically edited farm products with traits “similar in kind” to modifications that could be produced through traditional breeding techniques.
Arcadia operates in specialty genomics and has a proprietary approach combining conventional breeding and gene editing.
And on Friday the US told the World Trade Organization that it was planning to revise its regulations on importing, transporting and releasing GMOs.
“As a leading U.S. crop improvement company, Arcadia Biosciences is focused on enhancing the nutritional value and quality of food ingredients while improving crop productivity to allow America’s agricultural industry to be more sustainable and prosperous,” a company spokesperson said. “We’re supportive of any legislation that fosters public confidence in science-based crop innovation and streamlines regulatory approaches in order to reduce undue financial and logistical burdens on farmers.”
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