Tuesday January 19, 6:31 pm Eastern Time
Monsanto , Dow sign licensing pact
ST. LOUIS, Jan 19 (Reuters) - Life sciences firm Monsanto Co. said Tuesday it agreed to produce glyphosate, the active ingredient in its Roundup herbicide, for Dow Chemical Co., Monsanto's fifth such licensing agreement in recent months.
The agreement, which gives Dow AgroSciences the right to register a competing brand of glyphosate herbicide for sale globally, comes as Monsanto's U.S. patent for Roundup nears expiration in 2000.
A Monsanto spokeswoman declined to comment on the terms of this latest agreement or the other four, but said Monsanto was well compensated for the use of glyphosate, which it invented.
Monsanto announced similar licensing agreements with Nufarm Ltd., Micro Flo and Novartis AG earlier this month, and a deal with Cheminova Holding A/S last year.
As part of the latest agreement, once Dow AgroSciences receives U.S. Environmental Protection Agency approval, it may use its glyphosate herbicide brand to kill weeds in fields planted to Roundup Ready soybeans and cotton in the United States next year, and Roundup Ready corn in the United States in 2001.
Roundup Ready crops are genetically modified to withstand Monsanto's Roundup herbicide. U.S. farmers planted an estimated 25 million acres of Roundup Ready crops last year.
The agreement does not include lawn and garden uses, and does not give Dow access to Monsanto's Roundup products.
Shares of Monsanto were down 3-15/16 at 38-1/16. |
