Monsanto expands licencing strategy for flagship herbicide

Abstract

Monsanto is helping create its own competition by granting licenses to let others produce and sell glyphosate herbicides. Glyphosate is the active ingredient in Monsanto's 23-year-old flagship product line, Roundup, that has annual sales in excess of $2 billion. In an added twist, the company also will let others sell their glyphosate herbicides in the U.S. for use over Monsanto's herbicide-resistant—or Ready—crops. The agreements, Monsanto spokeswoman says, are part of a consistent and openly communicated long-term strategy to provide wide access to licensees who are willing to compensate Monsanto fairly for its technology. All firms involved are very guarded about the contractual and financial details. Dow AgroSciences, wholly owned subsidiary of Dow Chemical, is the most recent licensee. Last week, Dow gained global access to Monsanto's glyphosate registration data, except for in Japan; multiyear toll manufacturing agreement with Monsanto; and U.S. rights over certain Roundup Ready cr...