Monsanto Announces Record 11 Project Advancements in Annual Research and Development Pipeline Update

Jan 06, 2010, 09:30 ET from Monsanto Company

ST. LOUIS, Jan. 6, 2010 /PRNewswire-FirstCall/ -- This year's annual research and development (R&D) pipeline update marks many firsts for Monsanto Company (NYSE: MON). Among the record 11 project advancements are the first biotechnology product with a direct consumer dietary benefit and two of the largest commercial product launches in the company's history. These and other projects in the company's R&D pipeline are expected to help farmers meet the unprecedented global challenges facing agriculture.

The 11 project advancements in this year's update is one more than the company's all-time record. Products moving forward include SDA omega-3 soybeans; Genuity(TM) SmartStax(TM) refuge-in-a-bag; and Monsanto's first insect-protected Roundup Ready 2 Yield® soybeans designed for the Brazilian market.

The first two of Monsanto's seven High Impact Technologies (HIT) projects - Genuity(TM) SmartStax corn and Genuity(TM) Roundup Ready 2 Yield soybeans - have graduated from the pipeline and are expected to arrive at farmer's fields this year through broad commercial launches.

"We have talked before about being on the verge of a technology explosion, and this is the beginning of it," said Robb Fraley, chief technology officer for Monsanto. "This year you will see the first of those game-changing products delivering on the farm. These are just the first wave of innovation. The projects in the early phases of our pipeline today will continue to fuel the next wave of technological breakthroughs and gain momentum in the years to come."

The products coming out of the R&D pipeline today and in the future will help reset the bar for on-farm productivity and profitability, Fraley said.

SmartStax was developed in collaboration with Dow AgroSciences and approved in July 2009 with a 5 percent structured refuge for the Corn Belt, a breakthrough that will help increase yield and reduce pesticide use. Monsanto and Dow AgroSciences completed a full regulatory submission for a 5 percent refuge-in-a-bag seed blend to the Environmental Protection Agency (EPA) in December. This puts SmartStax on commercial track for the industry's only 5 percent refuge-in-a-bag product, pending EPA approval.

A "refuge" is a portion of the field required to be planted with non-insect-protected plantings to minimize the risk of target pests developing resistance.

Monsanto and Dow AgroSciences have been researching the concept of combining biotech and refuge seeds in one bag for multiple years. Genuity(TM) SmartStax with refuge-in-a-bag would allow farmers in the Corn Belt to plant one corn product across their entire field without the need to plant a separate, potentially lower-yielding refuge. In addition to the convenience, this product would further promote compliance with refuge requirements. Monsanto's refuge-in-a-bag product moved to Phase 4, the final phase before commercialization in today's update.

Monsanto's SDA omega-3 soybeans also advanced to Phase 4. SDA omega-3 soybeans offer a sustainable, land-based source of SDA that readily converts to the heart-healthy omega-3 fatty acid found in fish oil. Last year, the United States Food and Drug Administration (FDA) issued a Generally Recognized As Safe notice affirming that the SDA omega-3 soybean oil could be used in a variety of foods. Food companies can now formulate and test the oil from SDA omega-3 soybeans in food products for future launch. Clinical studies have shown that consumption of SDA omega-3 soybean oil significantly raises blood levels of the heart-healthy omega-3 fatty acid EPA, also found in fish and fish oils.

Each product developed by Monsanto goes through several levels of rigorous testing and development, as well as necessary regulatory approvals before commercialization.

"Our discovery engine screens thousands of genes every year to find the ones that deliver the best traits to be introduced into elite lines from the company's worldwide germplasm base," Fraley said. "Our strength is in continuing to deliver innovation to farmers that allow them to produce more on each acre with fewer inputs."

Projects in the company's yield and stress pipeline, a collaboration with Germany-based BASF, also continue to progress. The most advanced projects, drought-tolerant corn and higher-yielding soybeans, are moving as expected toward market launch. Given the absence of significant weather stress in 2009, Fraley said the company elected not to advance any yield and stress projects until more comprehensive data sets are available to generate the conclusive field research Monsanto requires to prove product performance.

The products in Monsanto's R&D pipeline, when combined with the company's industry-leading elite germplasm base, will help bring about a new wave of innovation that will benefit farmers around the world.

Monsanto's technology development process includes discovery and four phases. The first phase is proof of concept, followed by early development, which includes trait development and large-scale transformation, advanced development involving trait integration, field testing and generation of regulatory data. The final pre-launch phase involves regulatory submissions, seed bulk-up and pre-marketing. Monsanto spends more than $2.6 million a day on research and development. It takes an average of 10 years and $100 million for a biotechnology product to make it to market.

Other projects advancing phases

Several corn, soybean, cotton and canola projects also advanced in the R&D pipeline:

Corn projects:


    -  Roundup(R) Hybridization System (RHS) for Corn - The Roundup
       Hybridization System for corn will replace detasseling in hybrid seed
       corn production, thus reducing cost of goods. RHS, which moved to Phase
       3, utilizes a transgenic corn trait created by Monsanto that
       exhibits high tolerance to glyphosate in all tissues except male
       reproductive tissues.

       Carefully researched glyphosate application rates and timings will
       maximize glyphosate delivery to the developing male reproductive
       tissues, selectively eliminating male fertility and the need for
       manual or mechanical detasseling.

    -  YieldGard(R) Rootworm III - YieldGard Rootworm III is designed to
       offer increased control and durability against the corn rootworm. This
       next-generation product will use two distinct modes of action providing
       two different approaches to insect control. A broader spectrum of
       insect control would mean farmers would have more durability,
       better management of secondary pests, and the potential for reduced
       refuge. The product advanced to Phase 2.

       YieldGard Rootworm III incorporates cutting-edge RNA interference
       (RNAi) technology, which is used naturally by cells to regulate
       gene expression. By harnessing this natural mechanism, RNAi
       technology can help plants protect themselves from insects.

    -  YieldGard(R) Corn Borer III - YieldGard Corn Borer III offers a
       wide spectrum of control against key lepidopteran pests using two
       distinct modes of actions. This next-generation product, which moved to
       Phase 2, is more durable and is designed to offer an unparalleled
       combination of insect control and resistance management, with excellent
       control of target pests such as the corn borer complex, fall armyworm,
       corn earworm and cutworms.

    -  Dicamba- & Glufosinate-tolerant corn - This next-generation
       herbicide-tolerant corn product builds on the Roundup Ready(R) platform
       and would provide farmers with additional herbicide tolerance options.
       The multiple herbicide tolerances with different modes of action will
       offer growers more flexibility to manage difficult weed problems and
       protect their crop from yield-robbing noxious weed infestations.
       The product advanced to Phase 2.

    -  FOPS Tolerance - This next-generation herbicide tolerance
       product in corn, which advanced to Phase 1, builds on the Roundup
       platform and will provide farmers with additional in-crop options for
       weed management. FOPS is a low-cost tank mixing partner for post-
       emergence control of potential resistant grasses. Current in-crop
       solutions provide some grass control but crop response can be an issue
       and may impact yield.

Soybean projects:


    -  Insect-protected Roundup Ready 2 Yield - This stacked
       product is Monsanto's first product specifically developed for the
       Brazilian market. Insect-protected Roundup Ready 2 Yield soybeans use
       the same Bt technology widely used in corn and cotton to control the
       economically significant insect pests in Brazil, including the
       soybean looper and velvetbean caterpillar.

       The Bt trait is stacked with Roundup Ready 2 Yield for
       excellent weed control and yield enhancement. This product will
       provide the first ever in-seed insect protection for soybeans, and
       it moved to Phase 4, the final phase before commercialization.

    -  Vistive(R) Gold - The Vistive Gold trait, formerly known as Vistive
       III, delivers a trans fat free, reduced saturated fat soybean oil with
       increased stability for frying and baking applications. The company
       recently completed submissions to the U.S. Department of Agriculture
       and FDA in support of the Vistive Gold trait. Vistive Gold soybeans
       advanced to Phase 4 in the pipeline. Oil from Vistive Gold soybeans
       will have monounsaturated fat content similar to olive oil and low
       saturated fat content like canola oil. This will allow the food
       industry to cost-effectively eliminate trans fats and
       significantly lower saturated fat content of food products.

Cotton projects:


    -  Dicamba- and Glufosinate-tolerant cotton - Dicamba- and
       glufosinate-tolerant cotton is the third-generation of herbicide
       tolerance in cotton and represents Monsanto's first three-way stack of
       herbicide-tolerant technologies. This Phase 3 product will provide
       cotton growers the most effective weed management system available by
       combining Roundup Ready Flex, with dicamba and glufosinate tolerance
       for three unique modes of action.


       Having multiple herbicide tolerances will give farmers greater
       flexibility because there are only four known weed species
       resistant to dicamba in 40 years of use, and no known cases of
       weeds developing glufosinate resistance.

Canola projects:


    -  Roundup Ready 2 Canola - Roundup Ready 2 Canola is a second-generation
       herbicide-tolerant trait designed to provide farmers with improved
       weed control and greater flexibility. Farmers would be able to
       apply Roundup herbicide at higher rates and within a longer window
       - up to first flower - thus enabling them to control tough-to-
       kill perennial weeds. The project advanced to Phase 3.

       Greater flexibility would give farmers the opportunity to ensure
       yield-robbing weeds are removed at the optimal time, and being
       able to control tough weeds such as dandelion and perennial sow
       thistle would open up marginal fields for planting.

Additional information

Monsanto will be holding a media conference call at 11 a.m. (Central Time). To register, please visit https://intercall.webex.com/intercall/j.php?ED=132834122&UID=1100679602&RT=MiM0. In addition, Monsanto has posted a related presentation on its web site at: www.monsanto.com/investors/presentations.asp. To learn more about Monsanto's R&D pipeline and its phases, please visit: www.monsanto.com/pipeline.

About Monsanto Company

Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. Monsanto remains focused on enabling both small-holder and large-scale farmers to produce more from their land while conserving more of our world's natural resources such as water and energy. To learn more about our business and our commitments, please visit: www.monsanto.com . Follow our business on Twitter at www.twitter.com/MonsantoCo on Facebook at www.facebook.com/MonsantoCo, or subscribe to our News Release RSS Feed.

Cautionary Statements Regarding Forward-Looking Information:

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; developments related to foreign currencies and economies; successful operation of recent 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 most recent reports on Forms 10-Q and 10-K. 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.

Editor's Note: Genuity, SmartStax, Roundup, Roundup Ready, Roundup Ready 2 Yield, YieldGard, Vistive and Monsanto and the Vine Design are trademarks of Monsanto Technology LLC.

CONTACT Media: Riddhi Trivedi-St. Clair (314-694-4490)

SOURCE Monsanto Company



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