Melbourne, Australia and
Wilmington, Delaware
August 6, 2008
DuPont and Hexima Limited
(Hexima) today announced a development and commercialization
agreement for certain biotech fungal disease resistance
technology in corn, soybeans and other crops.
In this collaboration, DuPont business
Pioneer Hi-Bred and Hexima
will combine certain intellectual property and anti-fungal
protein assets to accelerate the development and
commercialization of transgenic fungal disease resistance
technology in corn, soybeans and other crops. Hexima will lead
the initial stage research and crop validation, and Pioneer will
lead late stage development. Pioneer will lead commercialization
in corn and soybeans, and Hexima will manage all other crops.
"We are always looking for new ways to tackle specific
challenges that our customers face," said Paul Schickler,
Pioneer president and DuPont vice president and general manager.
"This agreement with world-class experts in fungal disease
resistance technology is a great example of the innovative
approaches we're using to help solve these challenges."
"This agreement opens the way to market for one of Hexima's core
technologies," said Joshua Hofheimer, Hexima chief executive
officer. "It is an important next step in our commercialization
strategy and value-creation for our shareholders and,
furthermore, it is a powerful validation of our technology and
our scientific team in the global agribusiness market."
As part of this agreement and via a placement agreement, Pioneer
has subscribed to approximately 5 percent of the ordinary shares
of Hexima, in exchange for the contribution of certain
intellectual property. The collaboration will utilize Pioneer
proprietary gene-shuffling technology and Hexima proprietary
gene delivery technology, MGEV.
The initial target for the collaboration is broad spectrum
disease resistance in corn. Fungal pathogens can cause extensive
damage to corn fields globally, including yield loss, impaired
ability to harvest and reduced grain quality. Stalk rots are the
most common fungal diseases in corn fields worldwide, with
multiple pathogens creating estimated yield losses of more than
$1 billion in North and South America alone.
"This collaboration is an important addition to our strategy to
bring the best available technology to our customers in the area
of fungal disease resistance," Schickler said. "It will be an
important complement to native trait fungal disease resistance
research programs at Pioneer."
Pioneer and Hexima together with farmer customers will share the
value created by the disease resistance traits developed in this
collaboration. Hexima will have the opportunity to co-invest
with Pioneer in the late stage development of collaboration
traits. This would double Hexima's share of the value and
enhance the return to Hexima's shareholders. Hexima will be
entitled to success-based milestone payments.
"Hexima is pleased to be working with an organization of
Pioneer's standing and global reach," Hofheimer said. "Our
scientists have established a mutual respect and confidence
through their work together on earlier research collaborations
and, unlike standard technology licenses, Hexima will co-develop
the fungal technology and share in the value created for
farmers."
Hexima Limited is an ASX-listed agribusiness company (ASX
Code: HXL) developing innovative gene technologies to help
farmers meet growing demands for food and fibre by improving
yields from arable land. Hexima's core technologies aim to
increase the yield of commercial crops, by enhancing their
resistance to insects and fungal pests. Visit
http://www.hexima.com.au for more information.
Pioneer Hi-Bred, a DuPont business, is the world's leading
source of customized solutions for farmers, livestock producers
and grain and oilseed processors. With headquarters in Des
Moines, Iowa, Pioneer provides access to advanced plant genetics
in nearly 70 countries.
DuPont is a science-based products and services company. Founded
in 1802, DuPont puts science to work by creating sustainable
solutions essential to a better, safer, healthier life for
people everywhere. Operating in more than 70 countries, DuPont
offers a wide range of innovative products and services for
markets including agriculture and food; building and
construction; communications; and transportation.
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