Dow AgroSciences, Monsanto Cross-License Advanced Corn Trait Technology, Designed to Provide Exceptional New Tools for Weed and Insect Management

Thu Apr 11, 2013 8:30am EDT

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Agreements enable next-generation SmartStax® corn with additional insect
protection and access to Enlist herbicide-tolerant corn trait
INDIANAPOLIS & ST. LOUIS--(Business Wire)--
Monsanto Company (NYSE: MON) and Dow AgroSciences LLC, a subsidiary of The Dow
Chemical Company (NYSE: DOW), have reached new cross-licensing agreements for
creation of the next generation of advanced weed and insect control technology
in corn. Monsanto will license Dow AgroSciences` new Enlist Weed Control System
herbicide-tolerant trait for use in field corn. Dow AgroSciences will license
Monsanto`s third generation corn rootworm technology, Corn Rootworm III, which
is presently under development by Monsanto and offers a new mode of action for
rootworm control. The agreement paves the way for introduction (pending
regulatory approvals) of next-generation products that build off the current
SmartStax platform, which includes Dow`s Herculex and Monsanto`s insect
resistance and herbicide-tolerance traits. Financial terms of the agreement were
not disclosed. 

These technologies are expected to be introduced in each company`s respective
elite, proprietary germplasm and sold competitively by both companies as
next-generation weed and insect control products. The agreements build on the
competitive standard set by SmartStax* for stacked-trait corn offerings in
providing added value for farmers in their ongoing need to secure higher yields
despite wide-ranging pressures from damaging pests. This creates the opportunity
to bring together for the first time three different modes of action for
below-ground insect control in a corn product. 

Stacked trait products are particularly valuable for combating pest resistance
and preserving trait durability. Weed resistance is also a challenge facing
agriculture, and Enlist is a next-generation system that combines innovative
traits providing tolerance to 2,4-D and FOPs, novel herbicides and stewardship,
offering two modes of action for weed control to deliver performance that
farmers need now. Monsanto is the first licensee of the Enlist trait in corn. 

"This agreement takes the outstanding value offered by SmartStax technology to a
new level, allowing growers increased flexibility with highly effective new
modes of action for weed and insect management," said Antonio Galindez, Dow
AgroSciences president and CEO. "Adding advanced new traits to SmartStax -
including our Enlist corn trait - delivers on our company`s business objective
of providing better solutions for the growing world." 

"This agreement builds on the success we had with the original SmartStax
agreement, showing that as both companies innovate, we`ll continue to bring the
best products to farmers," said Brett Begemann, Monsanto`s president and chief
commercial officer. "We continue to look for additional modes of action that
offer benefit to our farmer customers and complement our existing offerings
while ensuring the sustainability and durability of the Roundup Ready system.
Dow`s Enlist trait is an excellent addition, specifically in its FOPs tolerance
offering. We`re also pleased this paves the way to make Monsanto`s Corn Rootworm
III trait available in SmartStax in the future as well as in Dow`s corn
products." 

Under the agreements:

* Monsanto and Dow AgroSciences will license to each other, under
royalty-bearing agreements, traits for weed control as well as insect protection
in corn. Specifically:

* Dow AgroSciences will license to Monsanto its proprietary Enlist corn
herbicide-tolerant trait on a non-exclusive basis. 
* Monsanto will license to Dow its third generation corn rootworm technology,
Corn Rootworm III, on a non-exclusive basis.

* The agreement paves the way for U.S. introduction (pending regulatory
approvals) of new, next-generation SmartStax products by the end of the decade. 
* Monsanto will represent both parties for joint third-party licensing of the
next-generation SmartStax corn to third-party seed companies through its Corn
States business, allowing farmers access to cutting edge technology in the
brands they prefer. 
* Dow AgroSciences will out-license the rights to the Enlist trait technology. 
* Both parties will retain the right to independently stack additional trait
technologies.

* As currently sold, SmartStax corn includes Dow AgroSciences` above- and
below-ground insect resistance traits, Herculex I and Herculex RW, and
glufosinate herbicide tolerance trait; Bayer Crop Sciences` Liberty Link; and
Monsanto`s above- and below-ground insect resistance traits YieldGard VT
Rootworm/RR2 and YieldGard VT PRO as well as Monsanto`s Roundup Ready glyphosate
tolerance trait.

About Monsanto Company

Monsanto Company is a leading global provider of technology-based solutions and
agricultural products that improve farm productivity and food quality. Monsanto
remains focused on enabling both small-holder and large-scale farmers to produce
more from their land while conserving more of our world's natural resources such
as water and energy. To learn more about our business and our commitments,
please visit: www.monsanto.com. Follow our business on Twitter® at
www.twitter.com/MonsantoCo, on the company blog, Beyond the Rows at
www.monsantoblog.com, or subscribe to our News Release RSS Feed. 

About Dow AgroSciences

Dow AgroSciences, based in Indianapolis, Indiana, USA, develops leading-edge
crop protection and plant biotechnology solutions to meet the challenges of the
growing world. Dow AgroSciences is a wholly owned subsidiary of The Dow Chemical
Company and had annual global sales of $6.4 billion in 2012. Learn more at
www.dowagro.com. Follow Dow AgroSciences on Facebook and YouTube or subscribe to
our News Release RSS Feed. 

About Dow

Dow (NYSE: DOW) combines the power of science and technology to passionately
innovate what is essential to human progress. The Company connects chemistry and
innovation with the principles of sustainability to help address many of the
world's most challenging problems such as the need for clean water, renewable
energy generation and conservation, and increasing agricultural productivity.
Dow's diversified industry-leading portfolio of specialty chemical, advanced
materials, agrosciences and plastics businesses delivers a broad range of
technology-based products and solutions to customers in approximately 160
countries and in high growth sectors such as electronics, water, energy,
coatings and agriculture. In 2012, Dow had annual sales of approximately $57
billion and employed approximately 54,000 people worldwide. The Company's more
than 5,000 products are manufactured at 188 sites in 36 countries across the
globe. References to "Dow" or the "Company" mean The Dow Chemical Company and
its consolidated subsidiaries unless otherwise expressly noted. More information
about Dow can be found at www.dow.com. 

 Enlist, DOW Diamond and Herculex are trademarks of The Dow Chemical Company
("Dow") or an affiliated company of Dow. Regulatory approvals are pending for
the Enlist herbicide solution and crops containing Enlist herbicide tolerance
traits. The information presented here is not an offer for sale. Always read and
follow label directions. ©2013 Dow AgroSciences LLC 

Roundup Ready, SmartStax, YieldGard, YieldGard VT Rootworm/RR2 and YieldGard VT
PRO are trademarks of Monsanto Technology, LLC. 

Liberty Link is a registered trademark of Bayer CropSciences. 

Forward-Looking Statements:

This release contains "forward-looking statements" which reflect the companies`
current expectations and currently available information. These forward-looking
statements are subject to risks and uncertainties and are based onassumptions
and estimates which could be inaccurate. Actual results could vary materially
from those anticipated or expressed in any forward-looking statement made by the
companies due to a number of factors, including without limitation technological
uncertainties facing the companies continued competition in the companies`
businesses; the companies` exposure to various contingencies, including those
related to intellectual property protection, regulatory compliance and the speed
with which approvals are received, and public acceptance of biotechnology
products; the success of the companies` research and development activities;
compliance with regulations affecting manufacturing; and the effect of weather
conditions, natural disasters and accidents on the agriculture business or
facilities. Additional risks factors related to Dow AgroSciences and Monsanto
are detailed in The Dow Chemical Company`s and Monsanto`s respective periodic
filings with the SEC. Undue reliance should not be placed on these
forward-looking statements, which are current only as of the date of this
release. The companies disclaim any obligation or intent to update the
forward-looking statements in order to reflect events or circumstances after the
date of this release, except as otherwise may be required by securities and
other applicable laws.

Monsanto
Media: Sara Miller, 314-694-5824
Analysts: Bryan Hurley, 314-694-8148
or
Dow
Media: Kenda Resler Friend, 317-337-4743
Analysts: Doug May, 989-636-2899 

Copyright Business Wire 2013