June 21, 2007

 

Monsanto forms licensing partnership with rival Bayer Crop Science

 

 

Biotech rivals Monsanto and Bayer Crop Science have formed a long-term partnership to develop and license new genetically engineered crops.

 

Monsanto is the world's biggest seed company while Bayer CropScience AG is a division of Germany-based Bayer AG.

 

Bayer CropScience said it will grant St. Louis-based Monsanto a royalty bearing, non-exclusive license for its LibertyLink herbicide-resistant corn and soybean seeds.

 

The agreement has also amended Monsanto's existing non-exclusive, royalty-bearing license to use Bayer CropScience's Dual Bt technology, which makes plants resistant to pests.

 

The deal could help Bayer CropScience broaden the use of its patented genetic traits by gaining access to Monsanto's broad line of engineered seeds, said Friedrich Berschauer, chairman of the Board of Management of Bayer CropScience.

 

News of the deal came one day after Monsanto announced the sale of two of its cotton seed divisions to Bayer CropScience for US$310 million.

 

The sale was required by the US Department of Justice as part of Monsanto's merger with cotton seed producer Delta and Pine Land. The department said Monsanto needed to divest its Stoneville and NexGen cotton seed divisions so the merger with Delta will not violate US antitrust law.

 

Bayer's US shares fell 47 cents to US$75.91 during morning trading while Monsanto shares fell 29 cents to US$67.13.

 

Monsanto has also announced a new partnership Wednesday with Athenix Corporation, a biotechnology firm based in Research Park, North Carolina. 

 

The agreement entered a three-year research collaboration to develop new insect control technology for Monsanto's major crop lines, including corn, soybeans and cotton. The companies did not disclose financial terms of the partnership.

 

The companies plan to find new genes that could make plants resistant to such insects as the cotton pest Lygus and stinkbug, a soybean pest.