Monsanto Company ( MON ), an agricultural
services provider, recently entered into a contract with Bayer
CropScience, a wing of Germany based Bayer AG. The deal relates to
the licensing of next-generation and enabling technologies in corn
and soybean production. Financial terms of the agreement were not
Per the agreement, Bayer CropScience, which deals in products
and solutions to manage pests in various agricultural fields, will
empower Monsanto to use Bayer's corn rootworm control and herbicide
tolerance technologies in its applications.
Bayer CropScience, on the other hand, will be entitled to use
Monsanto's GenuityRoundup Ready 2 Yield and Genuity Roundup Ready 2
Xtend technologies for use in soybeans, in US and Canada. The
arrangement takes place under a license through which Monsanto
earns royalty. Also, Bayer CropScience will gain access to Intacta
RR2 PRO in soybeans for use in Brazil.
Only last week Monsanto entered into another cross-licensing
deal with Dow AgroSciences LLC, a subsidiary of The Dow
Chemical Company ( DOW ) , in order to
create a weed and insect control technology for corn.
The agreement entitled Monsanto to use Dow's Enlist Weed Control
System, which allows corn to tolerate weed-killing chemicals, and
Dow in turn, will be able to reap the benefits of Monsanto's
upcoming Corn Rootworm III, which is useful in killing tiny insects
that feed on corn roots.
The new deal with Bayer CropScience takes a step further.
Bayer's corn rootworm control technologies, if put into proper use,
will be exploited by Monsanto in its efforts to control insects
feeding on corn, which will in turn be licensed to Dow.
The proper execution of these deals will ultimately make the
farmer customers the actual winners with the availability of new
options and choices. Monsanto currently carries a Zacks Rank #2
(Buy). Other chemical stocks worth a look are Balchem
Corp. ( BCPC ), carrying a
Zacks Rank #1 (Strong Buy) and Andersons Inc. ( ANDE ), carrying a
Zacks Rank #2 (Buy).ANDERSONS INC (ANDE): Free Stock Analysis
ReportBALCHEM CP CL-B (BCPC): Free Stock Analysis
ReportDOW CHEMICAL (DOW): Free Stock Analysis ReportMONSANTO CO-NEW (MON): Free Stock Analysis
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