Indianapolis, Indiana and St.
Louis, Missouri
September 14, 2007
Stacked product combines Dow
AgroSciences' and Monsanto's insect-protection and weed control
trait technologies; product set to deliver greater performance,
value and options for farmers
Monsanto Company (NYSE:
MON) and Dow AgroSciences LLC,
a subsidiary of The Dow Chemical Company (NYSE: DOW), have
reached a cross-licensing agreement aimed at launching
SmartStax™, the industry's first-ever eight-gene stacked
combination in corn. The agreement is expected to create a new
competitive standard for stacked-trait offerings and present an
expanded growth opportunity for both companies' seed brands and
traits businesses by the end of the decade.
"By bringing together the two companies that have developed and
commercialized the trait technologies widely used in agriculture
today, we can provide farmers an 'all-in-one' answer to demands
for comprehensive yield protection from weed and insect
threats," said Carl Casale, executive vice president of strategy
and operations for Monsanto. "Farmers will have more product
choices to optimize performance and protection, and that
translates into a higher-yielding opportunity and a new growth
proposition for their businesses and ours."
"The combination of these trait technologies signals the start
of the next generation of products with improved plant
protection and yield increases for the farmer," said Jerome
Peribere, president and CEO of Dow AgroSciences.
"These combinations provide tremendous value to the grower while
better protecting the technology-bearing crops from insect and
weed resistance."
Multi-gene product set to expand business opportunities for
both companies
Under the agreement, the companies will create a novel seed
offering that combines eight different herbicide tolerance and
insect-protection genes into top-performing hybrids for the most
complete control ever available. The product will include the
companies' respective above- and below-ground insect protection
systems, including Dow AgroSciences' Herculex® I and Herculex RW
technologies; Monsanto's YieldGard VT Rootworm/RR2™ and
YieldGard VT PRO™ technologies; and the two established weed
control systems, Roundup Ready® and Liberty Link®.
Casale noted that the product will represent an expanded
business opportunity for Monsanto's seed and traits business.
"We believe this multi-stack will enhance the growth of our
branded and licensed corn seed businesses and accelerate our
penetration of the potential trait acreage opportunities,"
Casale said.
Dow AgroSciences' Peribere noted that the agreement accelerates
Dow's plans to build a leading seed and biotechnology platform.
"This agreement, along with other recent activities, shows Dow's
continued commitment to the ag sector and the growth
opportunities that it presents," added Peribere.
Under the agreement:
- Monsanto and Dow
AgroSciences will use SmartStax™ as the brand to serve as
the commercial trademark for sales and trait licensing.
- Both parties will
cross-license, under royalty-bearing agreements, their
respective above- and below-ground insect protection systems
as well as the two leading weed control systems. The global
agreements should pave the way for the introduction of the
SmartStax brand in the U.S. by the end of the decade,
following regulatory approvals. In addition, the agreement
is structured to operate in any countries where the parties
seek and obtain the necessary approvals and registrations
for sale of the product.
- Monsanto will represent
SmartStax for both parties for joint third-party licensing.
This will enable the joint licensing of SmartStax to
independent seed companies through Monsanto's Holden's/Corn
States business, so that farmers can access the product in
the brands they prefer to plant on farm.
- Both parties will retain
the right to independently stack additional trait
technologies and combinations with SmartStax.
- Both parties will
cross-license germplasm to their seed brands for a ten-year
period under royalty-bearing agreements to create exclusive
new hybrid combinations which would not otherwise exist.
These brands
include: Monsanto's national corn seed brand, DEKALB®, and
regional seed brands sold by American Seeds, Inc.; as well
as Dow AgroSciences' Mycogen® corn seed brand. These
agreements are expected to enable the companies' brands to
develop new higher-yielding hybrid combinations.
Multi-gene product set to
expand performance and protection for farmers
SmartStax will combine eight modes-of-action in multiple traits
and provide season-long yield protection in three areas:
- Above-ground insect
control: Combining Dow AgroSciences' proven Herculex I
technology with Monsanto's second-generation corn-borer
control trait, YieldGard VT PRO, SmartStax will provide
the most comprehensive protection against corn borers as
well as established and emerging insects including corn
earworm, fall armyworm, western bean cutworm, and black
cutworm;
- Below-ground insect
control: Combining Dow AgroSciences' Herculex RW
technology and Monsanto's YieldGard VT Rootworm/RR2
technology, SmartStax will provide comprehensive
protection against the corn rootworm; and
- Weed control: Bringing
together Monsanto's industry-standard Roundup Ready 2
system with Liberty Link herbicide tolerance, SmartStax
weed control systems will combine the broadest spectrum
of weed and grass control with the option of two
different modes-of-action.
"SmartStax expands the insect and
weed protection for farmers to help maximize their return on
their investment," said Daniel R. Kittle, Ph.D., vice president,
Research & Development for Dow AgroSciences. "We expect growers
to rapidly adopt SmartStax as their primary trait package
because this combination of traits provides unmatched insect
protection and the greatest weed control options available,
releasing the full yield potential of their production system.
In addition, broad germplasm cross-licensing should generate new
high-performing hybrids never before available to the market."
"This agreement allows us to incorporate traits which provide
farmers with the most complete yield protection ever available
in a single package," says Robb Fraley, Ph.D., chief technology
officer for Monsanto. "It's a major advancement in corn trait
technology that will help farmers maximize yields by getting the
absolute best out of today's high-performing germplasm."
Dow AgroSciences and Monsanto have collaborated on initial proof
of concept testing on SmartStax aimed at feasibility of trait
integration and viability of enhanced performance. The results
from these tests are on target and will be used to prepare
regulatory submissions to support the combination of the novel
insect-protection stacks. To date, every trait included in
SmartStax is already either available commercially or in
advanced stages of regulatory review. The companies will make
regulatory submissions and anticipate SmartStax will be
commercially available to U.S. farmers by the end of the decade.
In addition, the companies will work with regulatory authorities
to evaluate how the multiple modes-of-action within SmartStax
can offer a new comprehensive insect-protection tool and the
companies will seek approval to reduce the established single
trait refuge programs.
Additional Information
In conjunction with today's announcement, Monsanto and The Dow
Chemical Company have posted presentations to their respective
web sites which provide an overview of SmartStax and related
agreements. Interested parties can access the Monsanto
presentation online at:
http://www.monsanto.com/investors and the Dow presentation
online at:
http://www.dow.com/financial/.
Dow AgroSciences LLC, based in Indianapolis, Indiana, USA, is
a top-tier agricultural company providing innovative crop
protection, pest and vegetation management, seed, and
agricultural biotechnology solutions to serve the world's
growing population. Global sales for Dow AgroSciences, a wholly
owned subsidiary of The Dow Chemical Company, are $3.4 billion.
Learn more at
http://www.dowagro.com/.
Monsanto is an agriculture company. The company is a leading
provider of technology-based solutions and agricultural products
that improve farm productivity and food quality. Monsanto is
committed to investing in products that can make a difference
for its farmer customers and the land they farm.
The company uses plant breeding, plant biotechnology and other
applications of modern science to support its commitment to
agriculture and the farmers that feed, clothe and fuel our
growing world. For more information on Monsanto, see
http://www.monsanto.com/.
Roundup Ready, SmartStax, YieldGard, YieldGard VT Rootworm/RR2
and YieldGard VT PRO are trademarks of Monsanto Technology, LLC.
DEKALB is registered trademark of DeKalb Genetics Corporation.
Herculex is a registered trademark of Dow AgroSciences LLC.
Mycogen is a registered trademark of Mycogen Corporation.
Liberty Link is a registered trademark owned by Bayer
CropScience.
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