DuPont, Monsanto partner on new soybeans

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DuPont and Monsanto announced a series of technology licensing agreements that will expand the range of seed products they can offer farmers. The agreements include a multi-year, royalty-bearing license for Monsanto’s next-generation soybean technologies in the United States and Canada. 

Through these agreements, DuPont Pioneer will be able to offer Genuity Roundup Ready 2 Yield soybeans as early as 2014, and Genuity Roundup Ready 2 Xtend glyphosate and dicamba tolerant soybeans as early as 2015, pending regulatory approvals.

DuPont Pioneer also will receive regulatory data rights for the soybean and corn traits previously licensed from Monsanto, enabling it to create a wide array of stacked trait combinations using traits or genetics from DuPont Pioneer or others.  Monsanto will receive access to certain DuPont Pioneer disease resistance and corn defoliation patents. 

“This technology exchange helps both companies to expand the range of innovative solutions we can offer farmers, and to do so faster than either of us could alone,” said DuPont Pioneer President Paul E. Schickler. “The agreements broaden the Pioneer soybean line-up. Importantly, they give us greater flexibility in developing combinations of genetics and traits to help feed an increasingly crowded planet.” 

Schickler reaffirmed DuPont’s existing financial growth commitments for its Agriculture segment.

“We’ve always agreed that technological innovation and farmer choice are essential to agriculture, and this agreement endorses the value of our next-generation soybean technologies,” said Brett Begemann, Monsanto president and chief commercial officer.  “This signals a new approach to our companies doing business together, allowing two of the leaders in the industry to focus on bringing farmers the best products possible while working to advance innovation and long-term opportunity for agriculture.”

Under these agreements, DuPont Pioneer will make a series of upfront and variable based royalty payments subject to future delivery of enabling soybean genetic material. It will make four annual fixed royalty payments from 2014 to 2017 totaling $802 million for trait technology, associated data, and soybean lines to support commercial introduction.  Additionally, beginning in 2018, DuPont Pioneer will pay royalties on a per unit basis of Genuity Roundup Ready 2 Yield and Genuity Roundup Ready 2 Xtend for the life of the agreement for continued technology access, subject to annual minimum payments through 2023 totaling $950 million. DuPont is filing a Form 8-K containing additional information about the impact of these agreements on the company. A copy of the 8-K is available on the DuPont Investor Center at http://www.investors.dupont.com/

DuPont and Monsanto also agreed to dismiss their respective antitrust and first-generation Roundup Ready soybean patent lawsuits pending in U.S. federal court in St. Louis.

Additional terms of the agreements were not disclosed.


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TM    
Missouri  |  March, 26, 2013 at 03:01 PM

Last week the Pioneer Reps told me these RR2 Beans were not very good I wonder if they are better this week?

J-Man    
SW Ohio  |  March, 28, 2013 at 08:28 AM

These seed companies are like a soap opera. My sympathies go out to the Monsanto seed dealers who thought they were going to have an edge and the Pioneer reps who are now forced to eat crow. It's another example of why you should never bad-mouth the competition...stay tuned!

Mizzou    
Missouri  |  March, 28, 2013 at 08:52 AM

Monsanto may have temporarily saved the Dupont president (Kullman) her job since she and her managers were caught red handed in company memos acknowledging they knew they had no rights to the Monsanto patents and then lying to the court about it during the patent lawsuit proceedings. I suspect the court has not dismissed that part of the lawsuit yet and Monsanto could still collect significant damages from Dupont?

RS    
Ontario  |  March, 28, 2013 at 09:10 AM

That is a press release I thought I would never read in my life time. I am a Monsanto Seed Rep and it does concern me. Monsanto's traits are the best in the world and Pioneer's genetics are 2nd to none so this certainly has strengthened Pioneers position.

John    
North Dakota  |  March, 28, 2013 at 09:11 AM

It is really hard enough as a retailer competing with other retailers who sell the same Monsanto brands in our area. Now we have to deal with the competitve brand names as well. Why should I have any loyalty to Monsanto's brands?

Dave    
Kansas  |  April, 01, 2013 at 04:25 PM

With the genetics of the 2 largest seed companies being pretty much the same the game becomes who can deliver the most value with these genetics. The retailers who offer more value to their customers will retain and grow their share.


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