Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

monsanto 01-18-06

295 views

Published on

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

monsanto 01-18-06

  1. 1. MONSANTO – DOW AGROSCIENCES GLOBAL AGREEMENT Jan. 18, 2006 1
  2. 2. Forward-Looking Statements Certain statements contained in this release are “forward-looking statements,” such as statements concerning the company’s anticipated financial results, current and future product performance, regulatory approvals, business and financial plans and other non-historical facts. These statements are based on current expectations and currently available information. However, since these statements are based on factors that involve risks and uncertainties, the company’s actual performance and results may differ materially from those described or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, among others: continued competition in seeds, traits and agricultural chemicals; the company’s 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 company’s research and development activities; the outcomes of major lawsuits, including proceedings related to Solutia Inc.; developments related to foreign currencies and economies; successful completion and operation of recent and proposed acquisitions; fluctuations in commodity prices; compliance with regulations affecting our manufacturing; the accuracy of the company’s estimates related to distribution inventory levels; the company’s ability to fund its short-term financing needs and to obtain payment for the products that it sells; the effect of weather conditions, natural disasters and accidents on the agriculture business or the company’s facilities; and other risks and factors detailed in the company’s 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 company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results. Trademarks Roundup, Roundup Ready, Bollgard, and Bollgard II are trademarks owned by Monsanto Company and its wholly- owned subsidiaries and are italicized the first time they appear in this presentation. Herculex and WideStrike are trademarks of Dow AgroSciences LLC. 2
  3. 3. OVERVIEW Key Elements of the Global Agreement MONSANTO DOW AGROSCIENCES • Commercial terms on licensed seed stock • Commercial license to seed stock and CORN & and biotechnology traits biotechnology traits SOYBEAN • Royalty revenue on new hybrids created • Right to create and license finished hybrids GERMPLASM & and licensed containing Roundup Ready combining Roundup Ready Corn 2 with TRAIT CROSS Corn 2 and Herculex™ I or Herculex™ I or Herculex™ XTRA LICENSING Herculex™ XTRA technology to existing licensees of Roundup Ready Corn 2 • Established financial terms for access to • Freedom to operate under Monsanto’s Dow AgroSciences* patent estate for patent estate for cotton transformation Glyphosate Tolerant cotton • Intellectual property licenses and freedom COTTON TRAIT • Intellectual property licenses related to to operate for WideStrike™ insect CROSS Bollgard, Bollgard II, Roundup Ready and protection technology LICENSING Roundup Ready Flex technologies • Commercial license for WideStrike™ technology in South America and Mexico ENABLING • Intellectual property license for the patent • Intellectual property license for Monsanto’s TECHNOLOGY estate for “Bt in plants,” owned by patent estate in synthetic Bt technology CROSS Mycogen LICENSING • Settles outstanding legal disputes, including Dow AgroSciences’ withdrawal of its appeal of the U.S. Patent and Trademark Office’s decision that Monsanto scientists were first to LITIGATION invent synthetic Bt genes. Monsanto also withdraws its appeal that Mycogen scientists were the first to invent the Cry1F gene. * Dow AgroSciences includes Dow AgroSciences and relevant affiliates, including Mycogen Plant Sciences, Inc., as appropriate 3
  4. 4. OVERVIEW The Global Agreement Strengthens Monsanto’s Business Strategy and Creates New Commercial Opportunity The key elements guiding our interest over the past year in a Global Agreement were: Our business strategy is built on a commitment to broadly license our technology and compete in the marketplace We strive to be a partner of choice, developing strategic collaborations when they can be mutually beneficial and strengthen our ability to offer products to our farmer customers Where there are opportunities for discussion with reasonable parties, our preference is to use negotiation to resolve issues rather than litigation The Global Agreement with Dow AgroSciences bolsters our commercial commitment to broadly license our technology, extends our business opportunity by creating more choices for growers in the marketplace, and strengthens our freedom to operate in our commercial and research portfolios 4
  5. 5. OVERVIEW The Global Agreement Strengthens Monsanto’s Business Strategy and Creates New Commercial Opportunity PREVIOUS KEY BUSINESS BENEFIT 12-05 GLOBAL AGREEMENT AGREEMENTS POTENTIAL • Royalties related to • Removes a potential barrier • Commercial terms on licensed seed stock CORN & Dow AgroSciences’ to accelerated Roundup and biotechnology traits SOYBEAN Bt corn products, Ready Corn 2 growth, offers GERMPLASM • Royalty revenue on new hybrids created including farmers increased choice & TRAIT and licensed containing Roundup Ready Herculex™ I and through licensees with CROSS Corn 2 and Herculex™ I or Herculex™ RW Roundup Ready Corn 2 as a LICENSING Herculex™ XTRA platform in stacks • No disruption of continued • Established financial terms for access to availability of Monsanto’s Dow AgroSciences* patent estate for cotton technology Glyphosate Tolerant cotton COTTON TRAIT • Flexibility for Monsanto’s • Intellectual property licenses related to CROSS acquired cotton seed brands Bollgard, Bollgard II, Roundup Ready and LICENSING in technology options in Roundup Ready Flex technologies South America • Commercial license for WideStrike™ technology in South America and Mexico ENABLING • No disruption of opportunity • Intellectual property license for the patent TECHNOLOGY for Monsanto’s pipeline of estate for “Bt in plants,” owned by Mycogen CROSS Bt technology LICENSING • Settles outstanding legal disputes, • Agreement concludes including Dow AgroSciences’ withdrawal of patent interference process, LITIGATION its appeal of the U.S. Patent and Trademark removing barrier to patent Office’s decision that Monsanto scientists issuance were first to invent synthetic Bt genes 5

×