Alt-Egg Startups The EVERY Company and Onego Bio: A Fractured Merger and Ongoing Patent Dispute

The alt-egg sector is witnessing a turbulent chapter involving two prominent startups: The EVERY Company and Onego Bio. Initial discussions for a potential merger have collapsed, leading to a lawsuit being filed by Onego against its competitor, as detailed in recent court documents.

Details of the Litigation

As per a court filing accessible as of October 31, valuation figures related to the merger discussions were disclosed, though The EVERY Company has since petitioned to seal that information.

In a legal filing dated October 28, The EVERY Company urged a Wisconsin court to dismiss Onego Bio’s lawsuit, which seeks to invalidate one of EVERY’s patents related to ovalbumin production through precision fermentation.

Intellectual Property at Stake

The patent in question covers ovalbumin, the main protein component of egg whites. The EVERY Company employs the yeast Komagataella phaffii, while Onego Bio utilizes the fungus Trichoderma reesei. The core issue revolves around the claim that Onego is infringing upon EVERY’s foundational patent, numbered ‘784, which pertains to ovalbumin expression across various host organisms.

Claims and Counterclaims

Onego Bio’s Allegations

In a forceful complaint last month in Wisconsin, Onego Bio accused The EVERY Company of engaging in unreasonable demands during their discussions, highlighting a proposed merger that Onego claims would represent a severe devaluation of its company. Allegations have also been made regarding unwarranted licensing fees and misinformation directed toward potential investors.

Responding to the Allegations

In court filings, The EVERY Company refutes these claims, stating that Onego has not identified any third-party investor who allegedly received misleading information. It emphasizes that Onego is the main aggressor and claims that it was always THE EVERY Co. that sought to avoid litigation.

A History of Negotiations

The two companies reportedly engaged in talks about licensing and the potential merger since May. EVERY maintains that Onego’s actions amount to attempts at coercion via litigation threats to gain access to its intellectual property—a narrative that EVERY supports with a detailed account of their communication history.

EVERY argues, “The parties’ full communications reveal that Onego has been the primary antagonist and issuer of threats while EVERY has consistently counseled against litigation.”

Onego Bio’s Defense

Onego, on its part, contends that its innovation involving the use of Trichoderma fungus for ovalbumin production predates ANY’s patent claims. They assert that the technology in question was well known within the Finnish technical research community before EVERY’s patent application.

Statements from Leadership

Arturo Elizondo, CEO of The EVERY Company, criticized Onego Bio’s litigation as a “desperate attempt” to access EVERY’s IP, asserting that the lawsuit was a strategy to gain leverage during negotiations. He emphasized, “EVERY will not capitulate to threats and will vigorously defend its extensive IP estate.”

As of now, Onego Bio has chosen not to comment on the ongoing litigation.

Market Landscape: Egg Proteins Without Chickens

Founded in late 2014, The EVERY Company, initially known as Clara Foods, has introduced two main products: ‘OvoPro’​ and ‘OvoBoost’. The company has raised $233 million and is currently exploring the establishment of a large-scale alternative protein production facility in the UAE.

Onego Bio, a spinoff from VTT, was founded in 2022 and focuses on producing ovalbumin, having raised $75 million to date. The firm is setting up a commercial HQ in San Diego and developing its manufacturing facility in Wisconsin.

Conclusion

The situation between The EVERY Company and Onego Bio illustrates the volatile nature of the alt-egg industry, where innovation and legal complexities intertwine. The outcome of this legal battle may have significant implications for future advancements in alternative protein production.

Further Reading:

• ‘Objectively unreasonable’: Onego Bio slams The Every Co in high-stakes patent fight
• Egg protein IP fight escalates as VTT challenges Every Co patent in Europe
• How to protect your IP on a budget: A primer for foodtech startups
• Onego Bio eyes Wisconsin site for chicken-free egg production, files GRAS notice
• Vivici and The Every Co explore 4m-liter alt protein facility in UAE