Odd Lots Podcast: The Biotech Start-Up Making Vaccines for Bees and Shrimps

Released on June 28, 2025

Introduction

In this compelling episode of Bloomberg's Odd Lots, hosts Joe Weisenthal and Tracy Alloway delve into the innovative world of animal biotechnology, focusing on the alarming decline in insect populations and the burgeoning biotech solutions aiming to reverse this trend. Recorded in April amidst heightened discussions on trade and tariffs, this episode sidesteps typical economic debates to spotlight a critical environmental and agricultural issue: the health of pollinators and aquaculture species.

Decline of Insect Populations

Tracy opens the conversation by reminiscing about past experiences with insects, highlighting the stark decline in today's natural world. She mentions her reading of "The Insect Crisis," underscoring the depth of the issue.

Tracy Alloway [04:05]: "There has been this notable decline in insects over the past couple of decades... it's extremely, extremely important."

Joe echoes these concerns, sharing personal anecdotes that emphasize the diminishing presence of insects in daily life.

The Importance of Pollinators

The discussion swiftly moves to honeybees, underscoring their vital role in pollination and, by extension, global food production. Tracy emphasizes that the decline of honeybees affects not just honey yields but also the availability of various nutritious foods.

Tracy Alloway [05:59]: "Honeybees are extremely important... we won't have as much other types of foods because they are very important pollinators."

Joe adds a personal touch by recalling a college business idea centered around hand-pollinated produce, reflecting broader concerns about relying solely on natural pollinators.

Introducing Dallin Animal Health

Transitioning from the problem to the solution, Tracy introduces Annette Kleiser, CEO of Dallin Animal Health—a pioneering biotech company focused on developing vaccines for insects and shrimps. Annette elaborates on the company's mission to protect essential pollinators and aquaculture species from diseases, thereby safeguarding both biodiversity and food security.

Annette Kleiser [08:48]: "Biotech has a big role to play, not just on the human side, but also on the animal side."

Innovative Vaccine Development for Honeybees

A central focus of the episode is Dallin Animal Health’s groundbreaking work in creating the world’s first vaccine for honeybees. Marc Reape, acting as the guest speaker, explains the unique approach of vaccinating queen bees to confer immunity to the entire colony.

Marc Reape [10:32]: "The queen gets a sugar paste to eat in her early stages before she gets introduced into the new colony. We just mix the vaccine. It's an oral vaccine."

This method leverages the natural phenomenon where queens pass disease information to their offspring, effectively immunizing the next generation without disturbing the hive’s daily operations.

Challenges in Funding and Commercialization

Tracy probes into the complexities Dallin Animal Health faced in securing funding and bringing their novel product to market. Marc candidly discusses the initial hurdles in fitting into existing investment categories and the reliance on angel investors who were both financially and socially motivated.

Marc Reape [20:19]: "There was literally nobody that... we fell into this complete no man's land. So in the beginning, it was heavily angel funded."

He highlights how the unique nature of their product initially alienated traditional venture capitalists, but shifts in investor interests towards sustainability eventually opened doors for Dallin.

Expansion into Shrimp Vaccines

Building on their success with honeybees, Dallin is poised to tackle diseases in the shrimp aquaculture industry, particularly white spot disease, which causes significant economic losses globally. Marc outlines the strategic selection of shrimp as a target, given its substantial role in global nutrition and the pressing need for disease prevention.

Marc Reape [38:04]: "White spot is definitely the disease that can wipe out an operation when it hits a farm."

He contrasts the well-established market for shrimp vaccines with the nascent stage of insect vaccines, illustrating a path forward based on their initial experiences.

Navigating the Regulatory Landscape

The conversation touches upon the regulatory challenges inherent in pioneering new biotech solutions. Marc explains the absence of existing frameworks for insect vaccines, necessitating the creation of new regulatory pathways and market models.

Marc Reape [15:48]: "We are creating everything. Dallin is basically writing the playbook on how do they develop these products, how do you get them licensed, how do you commercialize them."

This pioneering effort places Dallin at the forefront of defining industry standards and best practices for animal biotech.

Future Prospects and Industry Impact

As Dallin Animal Health continues to grow, the company is witnessing increased adoption of their vaccines, reflecting broader acceptance and recognition of their value in sustaining vital animal populations. Marc shares optimistic projections based on the significant rise in purchase orders and expanding customer base.

Marc Reape [25:48]: "We are seeing ... five times as many purchase orders than we had the same time last year, many more customers."

Tracy emphasizes the broader implications of such innovations, linking the health of pollinators and aquaculture species to global food security and environmental sustainability.

Conclusion

The episode concludes with a reflection on the critical role of innovative biotech solutions in addressing environmental and agricultural challenges. Hosts Tracy Alloway and Joe Weisenthal commend Dallin Animal Health for their trailblazing efforts and underscore the importance of continued investment and support in niche biotech fields that have far-reaching impacts on both ecosystems and human livelihoods.

Tracy Alloway [42:17]: "Finding ways of keeping them healthier so that they can survive... seems more important than."

Key Takeaways

1. Critical Decline of Pollinators: The significant reduction in insect populations, particularly honeybees, poses a threat to global food systems due to their essential role in pollination.

2. Innovative Biotech Solutions: Dallin Animal Health is at the forefront of developing vaccines for insects and shrimp, employing novel methods like queen vaccination to confer immunity colony-wide.

3. Funding Challenges: Pioneering biotech ventures often face difficulties in securing traditional funding, necessitating reliance on angel investors and alternative funding sources until their niche gains recognition.

4. Regulatory Pioneering: Developing new products in uncharted territories requires creating novel regulatory frameworks and market channels, as existing systems may not accommodate such innovations.

5. Expansion to Aquaculture: Building on their success with bees, Dallin is expanding into shrimp vaccines, addressing significant economic and environmental challenges in the aquaculture industry.

6. Market Adoption and Growth: Early successes and increasing adoption rates indicate a promising future for niche biotech solutions, reflecting their critical importance and market need.

Notable Quotes

• Tracy Alloway [04:05]: "There has been this notable decline in insects over the past couple of decades... it's extremely, extremely important."

• Marc Reape [10:32]: "The queen gets a sugar paste to eat in her early stages before she gets introduced into the new colony. We just mix the vaccine. It's an oral vaccine."

• Marc Reape [20:19]: "There was literally nobody that... we fell into this complete no man's land. So in the beginning, it was heavily angel funded."

• Marc Reape [38:04]: "White spot is definitely the disease that can wipe out an operation when it hits a farm."

• Tracy Alloway [42:17]: "Finding ways of keeping them healthier so that they can survive... seems more important than."

Conclusion

This episode of Odd Lots provides an insightful exploration into the intersection of biotechnology, environmental sustainability, and agriculture. Through the lens of Dallin Animal Health’s pioneering efforts, listeners gain a deeper understanding of the innovative approaches needed to address the decline of critical animal populations and the broader implications for global food security and ecological balance.