Monsanto Company (NYSE: MON) reported on advances in projects in its product pipeline, an unprecedented level of field testing and the benefits of research collaborations, as part of its first-quarter 2006 financial results reporting yesterday.

"Without a doubt, this is the most promising and exciting pipeline I've seen in my career at Monsanto," said Robert T. Fraley, Ph.D., chief technology officer and executive vice president for Monsanto. "We have projects that are poised to potentially make a difference in our commercial business from now through the end of the decade."

"More importantly, Monsanto researchers are generating additional trait leads that have the potential to take our research opportunity out well into the next several decades," Fraley said. "We are optimistic that these products will continue to help our farmer customers be more productive and profitable."

The presentation outlined several key measures of progress, but also touched upon some aspects highlighted for the first time:

• Monsanto is testing more products than ever. In fact, this year the company had more product concepts in the field than ever before.
   
• Monsanto's research-and-development (R&D) projects - such as drought-tolerant corn and Omega-3 soybeans - are advancing through the company's R&D pipeline, Fraley noted.
   
• Monsanto's discovery engine is not only advancing product concepts, but it is translating some initial projects - such as drought tolerance and Vistive soybeans - into new families of product offerings within the company's pipeline. Those initial projects are expected to be joined by advances like drought tolerance II and the third generation of Vistive soybeans.
   
• By the start of the next decade, Monsanto expects either to have transitioned or to be transitioning every one of its first-generation products to enhanced second- and even third-generation products.
   
• The pairing of Monsanto's discovery engine with various research collaborations is yielding research breakthroughs and has the potential to lead to additional commercial opportunities longer term, Fraley noted. He added that in the past year, 15 projects have either advanced or were added to the pipeline, which represents positive movement in more than 50 percent of the company's current pipeline portfolio. And of that movement, almost two-thirds are additions either from the company's discovery work or its collaborations.

"Even with the rapid adoption of the first generation of traits, we aren't taking our leadership for granted," Fraley said. "For a decade, biotech traits have delivered numerous benefits to the marketplace, in areas like cost savings. I believe the continued evolution and expansion of our pipeline will ensure our continued delivery of benefits to farmers, processors and consumers for years to come."

While Fraley's presentation was focused on the future, he also noted that the 2006 crop year will represent the 11th planting season of biotech crops. Recent studies have documented the rapid adoption of biotech crops and their benefits to farmers over the first ten seasons of product use. For instance, according to a 2005 study by PG Economics of the United Kingdom, farm incomes in countries that have adopted biotechnology have benefited by more than $19 billion.

Robert Fraley's presentation:
First-Quarter Financial 2006 Annual R&D Pipeline Review Slide Presentation (.pdf 354K)  

Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. 

VISTIVE is a trademark of Monsanto Technology LLC.