May 23, 2007

Monsanto ventures with Chromatin; sees increase of modified crops

Biotech giant Monsanto has partnered with another biotech company Chromatin Inc, in a venture that aims to boost the number of modified genes of commodity crops like corn and soybeans.

The St. Louis-based Monsanto is increasingly focused on producing so-called "stacked" crops that have multiple patented genes. Instead of just producing its own pesticide, for example, a stacked corn seen could also tolerate Roundup herbicide and be resistant to drought conditions.

Monsanto Chief Technology Officer Robert Fraley said in a statement that its partnership with Chromatin that it will be able to deliver high-value trait stacks faster and more efficiently in the future.

Monsanto's stock dropped 31 cents to US$61.52 during morning trading Tuesday (May 22) after the deal was announced.

Chicago-based Chromatin is a privately-held company that specializes in using mini-chromosomes to incorporate engineered traits into a plant.

The venture will last for three years and can be extended if necessary. Chromatin retained the right to license to other companies during the partnership which financial arrangements were not disclosed.

Monsanto announced a similar research partnership in March with BASF AG, the world's largest chemical company based in Ludwigshafen, Germany.

Monsanto and BASF agreed to share proprietary research to help develop new genetic traits more quickly. In that arrangement, Monsanto is allowed to keep 60 percent of all profits from new products while BASF would get 40 percent.

While Monsanto's partnership with Chromatin is not designed to develop new traits, it might help Monsanto weave any new traits into a plant's existing DNA more quickly and cheaper than the usual, according to the companies.