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Monsanto deal with Novozymes aims to accelerate new crop products

  • Monsanto (MON) is teaming up with a Danish biotech Novozymes (NVZMF, NVZMY) to develop microscopic organisms that help plants grow and resist pests, a move that could enable it to circumvent some concerns over its genetically modified seeds.
  • MON will pay $300M as part of the deal, in which the companies plan to combine their efforts to cultivate beneficial bacteria; they will split the cost of development equally and each get 50% of the profits from sales.
  • The idea of using microbes for plants hasn't caught on yet in part because many of the largest farmers are used to growing crops with synthetic fertilizer, scientists say.
Comments (1)
  • funfun
    , contributor
    Comments (2017) | Send Message
     
    When the biggest, most innovative global seed enterprise joins forces with the largest enzyme and food additives corporation in the world, watch out! No doubt the gulf between Monsanto/Novozymes with second-place seed company, DuPont and its now dismembered and bureaucratically subsumed enzyme outfit Danisco will widen considerably.

     

    Moreover, Monsanto's upfront outlay of $300 million is a tiny fraction of the towering $7 billion payment made by DuPont Chieftess Ellen Kullman who clumsily bid against herself to gobble up the number two enzyme-maker Danisco.

     

    Savvy ventures like this one will help keep Monsanto in the driver's seat in seeds for many years to come.

     

    Merely the perspective of one individual investor, long MON, short and long DD…funfun..
    11 Dec 2013, 09:35 PM Reply Like
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