March 4, 2014
BASF's peak sales potential of crop protection products may hit US$2.88 billion
BASF expects its crop protection products launched between 2010 and 2020 to achieve a peak sales potential of €2.1 billion (US$2.88 billion), with plans to launch new products across a range of crops and markets until the end of 2020.
This is an increase of €400 million (US$549.32 million) over the past year. The increase is driven by significant global demand for BASF's most recent blockbusters, Xemium fungicide and Kixor herbicide.
In 2013, BASF spent €469 million (US$644.08 million) on R&D in the Crop Protection division as part of its commitment to investing for long-term growth and developing new agricultural active ingredients and solutions. Supported by favourable market trends, the R&D pipeline and continued investments will contribute to the crop protection division reaching its previously-announced sales target of €8 billion (US$10.99 billion) by 2020.
"BASF is committed to discovering and delivering innovative solutions and services that meet the most pressing needs of our customers," said Markus Heldt, president of BASF's Crop Protection division. "Our ability to commercialise innovations has enabled us to grow our business significantly in every region over the past three years while, at the same time, also nearly doubling the value of our R&D pipeline to €2.1 billion (US$2.88 billion) in that time period."
The additional launches of Xemium and Kixor in South America have raised the peak sales potential for these two products. The company now expects Xemium to generate more than €600 million (US$823.98 million) in peak sales and Kixor more than €300 million (US$411.99 million).
Xemium was first launched in key European markets in 2011. The new Xemium-based product in Brazil, commercialised as OrkestraTM, controls Asian soybean rust and other key diseases and, as part of the AgCelence® brand of products, also provides additional benefits that increase overall plant health. The selective herbicide Kixor, first introduced in the US in 2010 and last year in Brazil, has become BASF's most successful herbicide launch in decades. Kixor provides control against difficult-to-control broadleaf weeds, including those that have become herbicide-resistant.
BASF's recently-established global unit, Functional Crop Care, expects to launch first solutions for soil management by mid-decade in key countries, including the US, Brazil and China. The unit's portfolio, which was expanded through the acquisition of Becker Underwood in 2012, includes products for chemical and biological crop protection, inoculants, polymers and colourants. Beyond these solutions, the company expects new innovations in the Functional Crop Care portfolio to generate incremental peak sales in excess of €100 million (US$137.33 million).
New active ingredient candidates and advanced formulations from insecticide and herbicide research also show strong commercial potential, particularly those resulting from in-licensing and collaborative projects with other partners. The company will launch a dicamba formulation, EngeniaTM herbicide, for use in dicamba/glyphosate tolerant cropping systems first in North America, with South America to follow. Engenia will be used to control resistant weeds in key row crops.