A recent announcement from seed industry giants Monsanto and Syngenta will have lasting repercussions throughout the seed, biotech and crop protection industries according to agriculture industry consulting experts at The Context Network.
In response, Context is preparing a white paper explaining expected outcomes and likely implications the move will bring companies across this marketplace and across the globe.
Context Partner, Blake Sieker explained that on May 24, Syngenta and Monsanto announced a definitive agreement resolving all outstanding litigation related to the two companies' global corn and soybean business. In addition, the companies announced several settlement-related licensing agreements. Sieker said, "This is a significant event that will broadly affect the industry from seed companies to biotech boutiques; from venture capital and private equity firms to stock and industry analysts. It will also impact crop input distributors and retail networks." Sieker added, "It will be critical for industry leaders to carefully and fully understand this announcement and what changes it will bring to the marketplace."
Mark Holland, Context consultant said, "We are preparing a white paper documenting all public information surrounding this announcement along with detailed analysis of the implications. It is a thorough and thoughtful perspective presented based on Context's broad industry experience and collective years of senior executive leadership."
This white paper will be available June 13th and can be downloaded from the company Web site (www.contextnet.com) upon subscription.
According to information provided to the public from both Syngenta and Monsanto, terms of the agreement include:
- Monsanto receives a royalty-bearing license to Syngenta's enabling technology related to Monsanto's third-generation herbicide-tolerant technology, Dicamba tolerance.
- Monsanto grants Syngenta a royalty-free license to its rights around specific herbicide-tolerant corn technology (GA21 event) and to its rights around specific insect-protected corn borer technology (Bt11).
- Syngenta and Monsanto agreed to settle all patent, antitrust and commercial litigation between them and their subsidiaries. Some of these disputes include Syngenta's antitrust suit, Monsanto's patent infringement suit on herbicide-tolerant corn technologies, and a dispute between the parties on herbicide-tolerant soybean technology.
- Syngenta and Monsanto agreed to cross-enable each other to develop and deliver innovative new herbicide-tolerant and Bt insect-protection products in corn, cotton and soybeans to compete for the business of farmers around the world.
Both companies say the moves make more technology choices available to growers. Context's Sieker stated, "The fact is, the agreement and licensing arrangements will have strong bearing on the seed, biotech and crop protection industry. This is a time for company leaders in each field to assess market potential, prospects and outcomes with scrutiny and analysis."