Please ensure Javascript is enabled for purposes of website accessibility

Monsanto Agrees to Cross-Licensing Deal with Bayer

By Rich Duprey - Apr 16, 2013 at 5:01PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Agribusiness giants team up to further genetically modify soybean and corn.

In exchange for being granted licenses to evaluate enabling technologies for corn rootworm control and herbicide tolerance, Monsanto (MON) agreed to provide Bayer CropScience with a royalty-bearing cross-license to its Genuity Roundup Ready 2 Yield and Genuity Roundup Ready 2 Xtend technology in soybeans in the U.S. and Canada.

Bayer will also receive a royalty-bearing license to Intacta RR2 PRO in soybeans in Brazil, with an option on a royalty-bearing license in other Latin American countries in the future. Bayer CropScience has also been granted stacking rights under certain conditions.

Genuity Roundup Ready 2 Yield is Monsanto's second-generation trait-technology platform for soybeans. Its Genuity Roundup Ready 2 Xtend soybeans contains the Yield trait technology stacked with a trait that provides tolerance to herbicide dicamba. Intacta RR2 PRO soybeans are the first‐ever insect-protected trait in soybeans, providing control of lepidopteran pests, such as moths and butterflies.

Rudiger Scheitza, a member of Bayer CropScience's board of management, said, "We are excited that with the combined technologies from both companies, we will be able to offer farmers additional pest control options and an all-inclusive weed resistance package in soybeans."

Monsanto's president and chief commercial officer, Brett Begemann, said, "We're pleased we have been able to reach an agreement with Bayer CropScience, which will offer increased benefits for farmers and foster continued choice and innovation in our industry."

Additional terms and financial details of the agreements were not disclosed.

Bayer CropScience, a subsidiary of Bayer AG responsible for the agricultural business, had annual sales of 8,383 million euros in 2012. Monsanto realized more than $14.7 billion in revenues over the past 12 months.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Monsanto Company Stock Quote
Monsanto Company

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.