Monsanto and Zeneca Announce Long-Term License Agreement

Strategic Insights -

Monsanto Company and Zeneca Agrochemicals have entered into a significant long-term license agreement, under which Zeneca will test, develop, and register "Touchdown" herbicide products for use on or over the top of Roundup Ready soybeans, corn, and cotton in the United States. This partnership marks a significant development in the agricultural weed control market, where Monsanto's Roundup and Zeneca's Touchdown herbicides will compete with each other.

Key Takeaways:

  • The agreement allows Zeneca to test, develop, and register Touchdown herbicide products for use on or over the top of Roundup Ready crops in the United States.
  • Zeneca will obtain U.S. Environmental Protection Agency registration, following which it will sell Touchdown herbicide for application on or over the top of these crops.
  • Monsanto and Zeneca have agreed to negotiate in good faith access to additional Roundup Ready crops in the United States and to all Roundup Ready crops globally.
  • The companies have agreed to dismiss pending lawsuits related to the use of Touchdown over Roundup Ready crops and related Monsanto patents.
  • Monsanto's Roundup and Zeneca's Touchdown herbicides will compete with each other in the agricultural weed control market.
  • The agreement will enable Zeneca to access new markets and customers through the use of Roundup Ready crops.
  • As part of the agreement, Zeneca will also engage in joint R&D activities with Monsanto to develop new products and technologies.

Statistics:

  • The agreement will cover Roundup Ready soybeans, corn, and cotton in the United States.
  • Zeneca will employ 30,000 people worldwide.
  • The Zeneca Group PLC is a $9.1 billion international bioscience company.
  • Zeneca Agrochemicals is the crop protection and plant sciences business of the Zeneca Group.
  • Monsanto employs 30,000 employees worldwide.

Sources:

  • PRNewswire, "Monsanto Company and Zeneca Agrochemicals Announce Long-Term License Agreement" (March 18, 1998)
  • NYSE: MTC - Monsanto Company, NYSE: ZEN - Zeneca Group PLC