Agreements enable next-generation SmartStax® corn with additional insect protection and access to Enlist™ herbicide-tolerant corn trait
Indianaplis, Indiana and St. Louis. Missouri - April 11, 2013
Monsanto Company (NYSE: MON) and Dow AgroSciences LLC, a subsidiary of The Dow Chemical Company (NYSE: DOW), have reached new cross-licensing agreements for creation of the next generation of advanced weed and insect control technology in corn. Monsanto will license Dow AgroSciences' new Enlist™ Weed Control System herbicide-tolerant trait for use in field corn. Dow AgroSciences will license Monsanto's third generation corn rootworm technology, Corn Rootworm III, which is presently under development by Monsanto and offers a new mode of action for rootworm control. The agreement paves the way for introduction (pending regulatory approvals) of next-generation products that build off the current SmartStax® platform, which includes Dow's Herculex® and Monsanto's insect resistance and herbicide-tolerance traits. Financial terms of the agreement were not disclosed.
These technologies are expected to be introduced in each company's respective elite, proprietary germplasm and sold competitively by both companies as next-generation weed and insect control products. The agreements build on the competitive standard set by SmartStax®* for stacked-trait corn offerings in providing added value for farmers in their ongoing need to secure higher yields despite wide-ranging pressures from damaging pests. This creates the opportunity to bring together for the first time three different modes of action for below-ground insect control in a corn product.
Stacked trait products are particularly valuable for combating pest resistance and preserving trait durability. Weed resistance is also a challenge facing agriculture, and Enlist is a next-generation system that combines innovative traits providing tolerance to 2,4-D and FOPs, novel herbicides and stewardship, offering two modes of action for weed control to deliver performance that farmers need now. Monsanto is the first licensee of the Enlist trait in corn.
"This agreement takes the outstanding value offered by SmartStax technology to a new level, allowing growers increased flexibility with highly effective new modes of action for weed and insect management," said Antonio Galindez, Dow AgroSciences president and CEO. "Adding advanced new traits to SmartStax - including our Enlist corn trait - delivers on our company's business objective of providing better solutions for the growing world."
"This agreement builds on the success we had with the original SmartStax agreement, showing that as both companies innovate, we'll continue to bring the best products to farmers," said Brett Begemann, Monsanto's president and chief commercial officer. "We continue to look for additional modes of action that offer benefit to our farmer customers and complement our existing offerings while ensuring the sustainability and durability of the Roundup Ready® system. Dow's Enlist trait is an excellent addition, specifically in its FOPs tolerance offering. We're also pleased this paves the way to make Monsanto's Corn Rootworm III trait available in SmartStax in the future as well as in Dow's corn products."
Under the agreements:
Monsanto and Dow AgroSciences will license to each other, under royalty-bearing agreements, traits for weed control as well as insect protection in corn. Specifically:
- Dow AgroSciences will license to Monsanto its proprietary Enlist corn herbicide-tolerant trait on a non-exclusive basis.
- Monsanto will license to Dow its third generation corn rootworm technology, Corn Rootworm III, on a non-exclusive basis.
- The agreement paves the way for U.S. introduction (pending regulatory approvals) of new, next-generation SmartStax products by the end of the decade.
- Monsanto will represent both parties for joint third-party licensing of the next-generation SmartStax corn to third-party seed companies through its Corn States business, allowing farmers access to cutting edge technology in the brands they prefer.
- Dow AgroSciences will out-license the rights to the Enlist trait technology.
- Both parties will retain the right to independently stack additional trait technologies.
* As currently sold, SmartStax corn includes Dow AgroSciences' above- and below-ground insect resistance traits, Herculex® I and Herculex® RW, and glufosinate herbicide tolerance trait; Bayer Crop Sciences' Liberty Link®; and Monsanto's above- and below-ground insect resistance traits YieldGard VT Rootworm/RR2® and YieldGard VT PRO™ as well as Monsanto's Roundup Ready® glyphosate tolerance trait.
About Monsanto Company
Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. Monsanto remains focused on enabling both small-holder and large-scale farmers to produce more from their land while conserving more of our world's natural resources such as water and energy. To learn more about our business and our commitments, please visit: www.monsanto.com. Follow our business on Twitter® at www.twitter.com/MonsantoCo, on the company blog, Beyond the Rows at www.monsantoblog.com, or subscribe to our News Release RSS Feed.
About Dow AgroSciences
Dow AgroSciences, based in Indianapolis, Indiana, USA, develops leading-edge crop protection and plant biotechnology solutions to meet the challenges of the growing world. Dow AgroSciences is a wholly owned subsidiary of The Dow Chemical Company and had annual global sales of $6.4 billion in 2012. Learn more at www.dowagro.com. Follow Dow AgroSciences on Facebook and YouTube or subscribe to our News Release RSS Feed.
Dow (NYSE: DOW) combines the power of science and technology to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world's most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow's diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2012, Dow had annual sales of approximately $57 billion and employed approximately 54,000 people worldwide. The Company's more than 5,000 products are manufactured at 188 sites in 36 countries across the globe. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.
®™ Enlist, DOW Diamond and Herculex are trademarks of The Dow Chemical Company ("Dow") or an affiliated company of Dow. Regulatory approvals are pending for the Enlist™ herbicide solution and crops containing Enlist herbicide tolerance traits. The information presented here is not an offer for sale. Always read and follow label directions. (C)2013 Dow AgroSciences LLC
Roundup Ready®, SmartStax®, YieldGard®, YieldGard VT Rootworm/RR2® and YieldGard VT PRO™ are trademarks of Monsanto Technology, LLC.
Liberty Link® is a registered trademark of Bayer CropSciences.
This release contains "forward-looking statements" which reflect the companies' current expectations and currently available information. These forward-looking statements are subject to risks and uncertainties and are based on assumptions and estimates which could be inaccurate. Actual results could vary materially from those anticipated or expressed in any forward-looking statement made by the companies due to a number of factors, including without limitation technological uncertainties facing the companies continued competition in the companies' businesses; the companies' exposure to various contingencies, including those related to intellectual property protection, regulatory compliance and the speed with which approvals are received, and public acceptance of biotechnology products; the success of the companies' research and development activities; compliance with regulations affecting manufacturing; and the effect of weather conditions, natural disasters and accidents on the agriculture business or facilities. Additional risks factors related to Dow AgroSciences and Monsanto are detailed in The Dow Chemical Company's and Monsanto's respective periodic filings with the SEC. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this release. The companies disclaim any obligation or intent to update the forward-looking statements in order to reflect events or circumstances after the date of this release, except as otherwise may be required by securities and other applicable laws.
For editorial information:
Media: Sara Miller, 314-694-5824
Analysts: Bryan Hurley, 314-694-8148
Media: Kenda Resler Friend, 317-337-4743
Analysts: Doug May, 989-636-2899