Monsanto and Bayer CropScience have announced that they will be sharing biotechnology technologies and genetic traits through a series of business deals. Two of the world's largest and most sophisticated biotech companies have agreed to work together on popular technologies such as insect resistance and herbicide tolerance. According to PR Newswire:
These agreements create significant value capture opportunities for both parties through herbicide and seed sales as well as royalties. The agreements establish cross-licenses that will enable next generation seed solutions and weed and insect control strategies from Bayer CropScience and the DuPont Crop Protection and Pioneer Hi-Bred businesses. The agreements also resolve outstanding legal and patent disputes between the companies in the area of insect control and herbicide safeners.
The companies have a history of strong competition, however Brownfield quoted James C. Borel, DuPont group vice president, as stating:
'These agreements are good news for farmers who will benefit from the cross-licensing of innovative technologies from both companies,' and 'DuPont and Bayer have a strong history of working together and these agreements set the stage for additional collaboration between the two companies.'
The full ramifications of the agreement are currently unknown, however more details on the agreement are certain to come to light in the near future.
Posted: 7/3/2009
