Novozymes And The High Cost Of Greatness
Stephen Simpson, CFA
Stephen Simpson, CFA
Thu, May 19, 11:48 AM
- A Monsanto (MON +4.9%) takeover by Bayer is considered "relatively unlikely" by Jefferies analyst Laurence Alexander, as he expects MON to object to the offer given its conviction in its R&D pipeline and longer-term competitive advantages.
- Alexander thinks shares of Syngenta (SYT -0.5%) and DuPont (DD -0.7%) could be pressured as regulatory scrutiny likely would intensify if MON gets acquired, and BASF (OTCQX:BASFY -1.4%) could fall on investor concerns of a potential counter-bid.
- But the analyst sees a potential MON takeover as positive for shares of Novozymes (OTCPK:NVZMY -0.1%) and FMC Corp. (FMC -0.7%), as "a further roll-up of 'specialty generic' agrichemical assets could entice capital, and FMC would be a plausible anchor for such an attempt."
- Jefferies rates MON as a Hold with a $95 price target.
- Now read Bayer investor "deeply concerned" about move for Monsanto
Tue, Apr. 12, 3:23 AM
- Danske Bank downgrades Novozymes to Sell.
- Price target is 270 Danish Krone. Implied downside 6%.
- Novozymes -1.9% to 288 DKK.
- Now read What If Gilead Goes Shopping?
Dec. 11, 2013, 10:29 AM
- 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.
Novozymes is the biotech-based world leader in enzymes and microorganisms. With more than 100 types of enzymes and microorganisms and not less than 700 different products Novozymes has the largest product portfolio in the world. <br />In more than 40 different industries and 130 countries, our... More
Sector: Industrial Goods
Industry: Chemicals - Major Diversified