Monsanto, Bayer CropScience in cross-licensing pact
April 16, 2013
by Eric Schroeder
ST. LOUIS — Monsanto Co. and Bayer CropScience, based in Monheim, Germany, have entered into a series of licensing agreements for next-generation and enabling technologies in the field of plant biotechnology that will provide new options and choices for farmers. The move comes less than a month after Monsanto and Wilmington, Del.-based E.I. du Pont de Nemours and Co. announced they were partnering in a series of technology licensing agreements that the companies said will expand the range of seed products they are able to offer farmers.
As part of its latest venture, Monsanto said it will provide Bayer CropScience with a royalty-bearing license to Genuity Roundup Ready 2 Yield and Genuity Roundup Ready 2 Xtend technology in soybeans in the United States and Canada. Bayer CropScience also will receive a royalty-bearing license to Intacta RR2 PRO in soybeans in Brazil with an option to a royalty-bearing license in other Latin-American countries in the future. Bayer CropScience also has been granted stacking-rights under certain conditions.
Under the agreements, Bayer CropScience will grant Monsanto licenses to evaluate enabling technologies for corn rootworm control and herbicide tolerance as options for Monsanto’s future pipeline development work.
“We are excited that with the combined technologies from both companies, we will be able to offer farmers additional pest control options and an all-inclusive weed resistance package in soybeans,” said Rudiger Scheitza, member of the board of management of Bayer CropScience and head of strategy and business management. “These will fit nicely with our own technology such as LibertyLink. We’re also pleased to give Monsanto access to evaluate enabling next-generation weed control and insect technologies for potential support of future pipeline developments.”
Brett Begemann, president and chief commercial officer for St. Louis-based Monsanto, added, “We’re pleased we have been able to reach an agreement with Bayer CropScience, which will offer increased benefits for farmers and foster continued choice and innovation in our industry. This agreement further supports the value of our Genuity Roundup Ready 2 Yield platform as we prepare to enter the next phase of innovation in soybeans with the addition of Intacta RR2 PRO and Genuity Roundup Ready 2 Xtend.”
Additional terms and financial details of the agreements were not disclosed.
Genuity Roundup Ready 2 Yield is Monsanto’s second-generation trait technology platform for soybeans. Genuity Roundup Ready 2 Xtend soybeans contain the Genuity Roundup Ready 2 Yield trait technology stacked with a trait that provides tolerance to dicamba, a herbicide. Intacta RR2 PRO soybeans are the first‐ever insect-protected trait in soybeans, providing control of lepidopteran pests.