Bio-Gene Technology has signed a non-binding term sheet with Sumitomo Corporation and Nakashima Trading Co. to develop and market household insecticide products in Japan using its botanical active ingredient, Qcide.

The companies aim to launch products in Japan’s household nuisance insect segment by late 2026. The country’s home insecticide market generates about $1 billion in annual sales.

Under the proposed arrangement, Bio-Gene will produce Qcide oil in Queensland, Australia, and supply it to Japan. Sumitomo will coordinate ordering, trade financing, logistics and import approvals, while Nakashima will handle formulation, packaging, promotion and distribution to retail outlets.

The finished products are expected to be sold through home-improvement stores, pharmacies, supermarkets and online marketplaces in Japan.

Bio-Gene said definitive agreements with the partners are expected to be completed by late April or early May.

Qcide is a botanical insecticidal ingredient extracted by steam distillation from eucalyptus biomass grown on Bio-Gene plantations in Queensland. The product has been listed by the Organic Materials Review Institute in the United States as a botanical pesticide compatible with organic production standards.

Household insecticides in Japan targeting pests such as ants, cockroaches and flies can be sold to consumers without the same regulatory approvals required for agricultural or public-health pesticides, provided their use is limited to domestic nuisance pests.

Synthetic chemicals accounted for about 68.5% of Japan’s household insecticide market in 2024, though demand for products based on natural ingredients has been increasing, according to market data cited by the company.

Bio-Gene, based in Melbourne, develops insecticides derived from naturally occurring compounds and typically works with commercial partners to formulate and distribute finished products while supplying the active ingredients.

The company will provide further details once binding agreements are finalized.