Monsanto and Dow Team to Create 8-Stack Hybrid

Monsanto and Dow AgroSciences have reached a cross-licensing agreement aimed at launching SmartStax™, the industry's first-ever eight-gene stacked combination in corn.  The agreement is expected to create a new competitive standard for stacked-trait offerings.  “By bringing together the two companies that have developed and commercialized the trait technologies widely used in agriculture today, we can provide farmers an 'all-in-one' answer to demands for comprehensive yield protection from weed and insect threats,” said Carl Casale, executive vice president of strategy and operations for Monsanto.

Under the agreement, the companies will create a novel seed offering that combines eight different herbicide tolerance and insect-protection genes into top-performing hybrids.  The product will include the companies' respective above- and below-ground insect protection systems, including Dow AgroSciences' Herculex® I and Herculex RW technologies; Monsanto's YieldGard VT Rootworm/RR2™ and YieldGard VT PRO™ technologies; and the two established weed control systems, Roundup Ready® and Liberty Link®.

Under the agreement:

• Monsanto and Dow AgroSciences will use SmartStax™ as the brand to serve as the commercial trademark for sales and trait licensing.
•  Both parties will cross-license, under royalty-bearing agreements, their respective above- and below-ground insect protection systems as well as the two leading weed control systems.  The global agreements should pave the way for the introduction of the SmartStax™ brand in the U.S. by the end of the decade, following regulatory approvals.  In addition, the agreement is structured to operate in any countries where the parties seek and obtain the necessary approvals and registrations for sale of the product.

•  Monsanto will represent SmartStax™ for both parties for joint third-party licensing.  This will enable the joint licensing of SmartStax™ to independent seed companies through Monsanto's Holden's/Corn States business, so that farmers can access the product in the brands they prefer to plant on farm.

•  Both parties will retain the right to independently stack additional trait technologies and combinations with SmartStax™.

•  Both parties will cross-license germplasm to their seed brands for a ten-year period under royalty-bearing agreements to create exclusive new hybrid combinations which would not otherwise exist.  These brands include: Monsanto's national corn seed brand, Dekalb®, and regional seed brands sold by American Seeds, Inc.; as well as Dow AgroSciences' Mycogen® corn seed brand.  These agreements are expected to enable the companies' brands to develop new higher-yielding hybrid combinations.

Dow AgroSciences and Monsanto have collaborated on initial proof of concept testing on SmartStax™ aimed at feasibility of trait integration and viability of enhanced performance.  The results from these tests are on target and will be used to prepare regulatory submissions to support the combination of the novel insect-protection stacks.  To date, every trait included in SmartStax is already either available commercially or in advanced stages of regulatory review.  In addition, the companies will work with regulatory authorities to evaluate how the multiple modes-of-action within SmartStax™ can offer a new comprehensive insect-protection tool and the companies will seek approval to reduce the established single trait refuge programs.  (Press Release, 9/17/07).